Question that needs answer & justification

Guys I'am back with a question and needs ur expert answers and justification...


Question:


If someone in the organization has been delegated procurement authority it means that the individual is:


Answer:


a) Authorized to maintain an intellectual property database containing information concerning the performance of sellers on prior projects


b) Authorized to initiate and conduct negoriations whith prospective sellers


c) Authorized to review and approve payment on billings submitted by sellers


d) Authorized to contractually bind the organization

What is the first thing the pm can do - among those 4 choices., B seems to be right.


b) Authorized to initiate and conduct negoriations whith prospective sellers


 


 

Option B is incorrect!!! according to the website !!!.. I'll give the correct answer once we have more justification and comments on the options..

I would go with option d , as the authorisation can come in the form of approvals ......in that case , option c also seems likely , however , i will still go by d

Please justify your answer!!! with detailed explanation and/or justification... so that I can understand them...


 

Well, to understand the answers , u need to be able to distuinguish between authority and delegation of authority ....Secondly , the question does not state your designation , so you may not be a PM afterall


Assuming that it is not a PM who has been assigned the authority , look at the below options :


a) Authorized to maintain an intellectual property database containing information concerning the performance of sellers on prior projects


This is ideally the role of a procurement manager , however , this does not require authorisation


b) Authorized to initiate and conduct negoriations whith prospective sellers


A Procurement manager designate may initiate , however , there are many parties to the negotiation , hence


c) Authorized to review and approve payment on billings submitted by sellers


Review and approval of payment may rest on the project manager , not necessarily the procurement manager


d) Authorized to contractually bind the organization


The authorisation to contractually bind the organisation requires authorised signatories , this is where the authorisation would truly count


 


 


Hope this explains what you intended to seek, though i am still not sure this is the answer or the perpective the question assumed


 


 

If someone in the organization has been delegated procurement authority it means that the individual is:


Assuming that the person in question is neither a PM nor a Project Manager the correct option should be option D.


 

I will go with option D.


Purchase Department is the one that issues a P.O. and it is the final binding document for both buyer and seller.  If I delegate that authority, the delgatee is now empowered to issue a PO and is responsible for oversight and contractual obligations on behalf of buyer's organization.


A- IP databse is more under the jurisdiction of Legal Department than Purchase Department.  It has to be approved after legal consent and all matters should go through legal department - Not a correct choice


B- Most part is PM's and team's jurisdiction - not Purchase Dept.  In my organization, I get the quotes, write purchase requisition, provide justification, initiate request to add the seller to the purchase dept's vendor list etc - though I am not in a purchase dept.  I don't have the procurement authority- not correct choice based on my experience


C- It is more under Financial Department's jurisdiction - not related to procurement authority delegation-as they keep track of costs, accounting etc once PO is issued and the deliverables are accepted by requester.


 


So I vote for Option D.


 


Chandra

Option D is the right one according to the website !!!....


Thanks to every1 who tried to explain this question, but I'am more convinced with the reply & interpretation given by BiswasRahul...


No hard feelings to any1... :)


Thanks once again to all !!!!


BR


Badhri...