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PGMP · Question #361

As the buyer is involved in creating request for proposals (RFP. for an infrastructure project, they will provide these to sellers of services. All of the following are names used for a seller except?

The correct answer is D. Acquiring organization. In procurement management, 'acquiring organization' refers to the buyer, not the seller; contractor, service provider, and supplier are all valid terms for a seller.

Program Stakeholder Engagement

Question

As the buyer is involved in creating request for proposals (RFP. for an infrastructure project, they will provide these to sellers of services. All of the following are names used for a seller except?

Options

  • AContractor
  • BService provider
  • CSupplier
  • DAcquiring organization

How the community answered

(44 responses)
  • A
    5% (2)
  • B
    2% (1)
  • D
    93% (41)

Why each option

In procurement management, 'acquiring organization' refers to the buyer, not the seller; contractor, service provider, and supplier are all valid terms for a seller.

AContractor

Contractor is a standard term for a seller who provides services or deliverables under a contract.

BService provider

Service provider is a commonly used term for a seller that delivers services rather than physical goods.

CSupplier

Supplier is a recognized term for a seller who provides materials, products, or services to the buyer.

DAcquiring organizationCorrect

The 'acquiring organization' is the entity that is purchasing or acquiring goods and services, making it a buyer-side term, not a seller-side term. The buyer in a contract is the party issuing the RFP and selecting a vendor. Contractor, service provider, and supplier are all recognized PMBOK terms that describe the seller - the party providing goods or services in response to an RFP.

Concept tested: Procurement terminology - buyer versus seller roles

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#Procurement terminology#Buyer vs. Seller#Stakeholder identification

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