Oracle Service Cloud Developer 2016 — Question 5

What is the difference between Prospective and Spend authorized suppliers?

Answer options

• A. Prospective suppliers can participate in Sourcing activities only, whereas Spend authorized suppliers can participate in all Procure-to-Pay activities.
• B. Prospective suppliers are limited to sourcing and qualification activities, whereas Spend authorized suppliers are limited to purchase orders and agreements.
• C. Prospective suppliers are limited to purchase orders, whereas both purchase order and agreement can be created for Spend authorized suppliers.
• D. Prospective suppliers are suggested by internal users, whereas Spend authorized suppliers are registered externally.

Correct answer: B

Explanation

The correct answer is B because Prospective suppliers are indeed limited to sourcing and qualification activities as they have not yet been fully vetted for procurement, while Spend authorized suppliers have completed the necessary processes to engage in purchase orders and agreements. The other options incorrectly describe the roles and limitations of these supplier types.