Certified Fraud Examiner (CFE) — Question 20

In which of the following process, all bidders are legally supposed to be placed on the same plane of equality, bidding on the same terms and conditions?

Answer options

• A. Bid-rigging
• B. Kickbacks
• C. Competitive bidding
• D. Bid solicitation

Correct answer: C

Explanation

The correct answer is C, Competitive bidding, as it mandates that all participants must adhere to the same terms, ensuring fairness in the process. Options A and B, Bid-rigging and Kickbacks, involve illegal practices that undermine competition. Option D, Bid solicitation, refers to the process of inviting bids but does not guarantee equality among bidders.