Vendors should be approved by Management before purchase department executes an order If this is not...........

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Vendors should be approved by Management before purchase department executes an order. If this is not done, then which of the following situations may arise?

Purchases could be made from vendors whose product quality may not be good

Purchases may be made from related parties without management’s knowledge

Purchases could be made from vendors who may have offered price to manager purchases

Any of these

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Explanation:

- Purchases could be made from vendors whose product quality may not be good: Without management approval, the evaluation of the vendor’s product quality might be overlooked, resulting in poor quality purchases.

- Purchases may be made from related parties without management’s knowledge: Vendors with personal connections to employees could be chosen, leading to potential conflicts of interest.

- Purchases could be made from vendors who may have offered price to manager purchases: There is a risk of corruption or unethical practices if vendors indirectly influence purchase decisions.

- Answer: Option 4 - Any of these : All these situations are possible without management's oversight.