In ____________ scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.
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A. B. C. D.A
The scheme described in the question is commonly referred to as "Bid-rigging." In this scheme, a supplier pays an employee of the purchasing company to write specifications that will require amendments at a later date.
The purpose of this scheme is to ensure that the supplier is the only one who can meet the new specifications, thus eliminating competition and allowing the supplier to charge inflated prices. This scheme is a form of corruption and can result in significant financial losses for the purchasing company.
Option C, "False specification," comes closest to describing this scheme. False specification refers to a situation in which a company deliberately specifies a product or service that is not necessary or does not meet the company's actual needs. In the case of bid-rigging, the specifications may be intentionally vague or incomplete, making it difficult for other suppliers to bid on the project.
Option A, "Deliberate writing of vague specifications," is also related to bid-rigging but does not fully capture the scheme's nature. Deliberately writing vague specifications can be a tactic used in bid-rigging, but it is not the primary goal.
Option B, "Need recognition," and option D, "Bid-splitting," are not related to bid-rigging. Need recognition refers to the process of identifying a company's needs and finding solutions to meet those needs. Bid-splitting refers to a scheme in which a company splits a large contract into smaller ones to avoid competitive bidding requirements.