Question

Purchasing cooperatives are commonly used by government entities to save money by applying principles common to bulk purchasing at a store such as Costco. Private entities may be less enthusiastic to engage in these agreements because:

	a.	Private companies are usually not subject to the same number and rigor of procurement restrictions that government entities are.
	b.	Private entities purchase more diverse items than government agencies.
	c.	Private entities have too many conflicts of interest to engage other businesses in agreements that are beneficial to all concerned.
	d.	Public entities have better compensated and more innovative procurement departments than private entities.

Answer 1

Answer: Option A

Explanation: Purchasing cooperatives are commonly used by government entities to save money by applying principles common to bulk purchasing at a store such as Costco. Private entities may be less enthusiastic to engage in these agreements because Private companies are usually not subject to the same number and rigor of procurement restrictions that government entities are.