MCPPO PRACTICE EXAM
The primary objective of public procurement is to get the commodities,
services, and facilities that organizations demand.
-When and where resources, services, and facilities are required.
-For the best price reasonably available.
-Through open and fair competition.
-At a fair price.
Price: ANSWER The actual amount paid to a vendor for goods, services, or
facilities.
The cost of obtaining supplies, services, or facilities is always more than the
amount paid to the seller.
Establishing Responsibility for Executing Transactions - ANSWER The
company should explicitly define and record which roles within the
organization are in charge of carrying out specific transactions, as well as offer
a full description of the procedures for carrying out and documenting each type
of transaction.
Formation of a Contract - Answer This occurs when two or more parties agree
to act or commit to perform in specific ways in exchange for something
valuable.
, Four Elements of Any Contract: ANSWER Mutual Assent
Offer and Acceptance.
Consideration
Defining Contract Terms
Mutual Assent: ANSWER The contract's parties agree or have "a meeting of the
minds" over what they agree to do or not do.
Is an advertisement, price list, or catalogue considered an offer? - ANSWER
No. The dealer is only alerting the reader about the available things. The vendor
is seeking proposals from prospective purchasers.
Consideration - Answer To create an enforceable contract, something of value
must be exchanged. The giving up of something valuable.
Typically, money is the type of compensation supplied by one person in
exchange for something valuable offered by the other. In some circumstances,
however, consideration takes a different shape than money.
Definiteness of Contract Terms - Answer In general, a contract must include the
names of the parties, define the contract's precise subject matter and
specifications, mention the price or consideration, and specify crucial contract
terms and conditions, such as time and place of performance.
Prior Appropriation: ANSWER In general, municipal finance legislation
prevents cities and towns from spending monies on specific things that exceed
the appropriation for that item.
The primary objective of public procurement is to get the commodities,
services, and facilities that organizations demand.
-When and where resources, services, and facilities are required.
-For the best price reasonably available.
-Through open and fair competition.
-At a fair price.
Price: ANSWER The actual amount paid to a vendor for goods, services, or
facilities.
The cost of obtaining supplies, services, or facilities is always more than the
amount paid to the seller.
Establishing Responsibility for Executing Transactions - ANSWER The
company should explicitly define and record which roles within the
organization are in charge of carrying out specific transactions, as well as offer
a full description of the procedures for carrying out and documenting each type
of transaction.
Formation of a Contract - Answer This occurs when two or more parties agree
to act or commit to perform in specific ways in exchange for something
valuable.
, Four Elements of Any Contract: ANSWER Mutual Assent
Offer and Acceptance.
Consideration
Defining Contract Terms
Mutual Assent: ANSWER The contract's parties agree or have "a meeting of the
minds" over what they agree to do or not do.
Is an advertisement, price list, or catalogue considered an offer? - ANSWER
No. The dealer is only alerting the reader about the available things. The vendor
is seeking proposals from prospective purchasers.
Consideration - Answer To create an enforceable contract, something of value
must be exchanged. The giving up of something valuable.
Typically, money is the type of compensation supplied by one person in
exchange for something valuable offered by the other. In some circumstances,
however, consideration takes a different shape than money.
Definiteness of Contract Terms - Answer In general, a contract must include the
names of the parties, define the contract's precise subject matter and
specifications, mention the price or consideration, and specify crucial contract
terms and conditions, such as time and place of performance.
Prior Appropriation: ANSWER In general, municipal finance legislation
prevents cities and towns from spending monies on specific things that exceed
the appropriation for that item.
