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CIPS.L4M4.v2025-11-05.q105
Question 51

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Question 51/105

Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?

A. capacity, capability and pricing structure

B. pricing structure, ethics and financial stability

C. financial stability, capacity and capability

D. capability, culture and pricing schedules

Correct Answer: C

The correct answer is financial stability (this is done by using all of those lovely ratios in chapter 1.3) and capacity and capability (which are part of Carter's 10 Cs).
At PQQ stage you're looking purely at whether the supplier is good or bad (to put it simply). You don't give them details of your requirement yet, so they're not providing a quote / pricing structure / price schedule at this point in time. That would be at the next stage, IF they pass PQQ, when you issue the tender competition.

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