Certification in Supplier Diversity Practice Exam

Which term describes individuals or companies that cannot compete for business due to standards failure?

1. Prequalified suppliers

2. Certifiable suppliers

3. Disqualified suppliers

4. Approved suppliers

The correct answer is: Disqualified suppliers

The term that accurately describes individuals or companies that cannot compete for business due to standards failure is "disqualified suppliers." This designation indicates that these suppliers do not meet specific criteria or standards needed to participate in bidding or procurement processes. Standards may include quality control measures, compliance with regulations, or financial stability, among others. When a supplier fails to meet these standards, they are effectively removed from consideration, making them disqualified for that particular opportunity. In contrast, prequalified suppliers have been assessed and deemed capable of meeting specific criteria, handling opportunities effectively. Certifiable suppliers are those who can achieve certification as meeting certain standards but may not yet have done so. Approved suppliers are those who have been authorized or sanctioned to provide goods or services but are not necessarily indicative of failure to meet any standards. Thus, "disqualified suppliers" is the precise term for those unable to compete due to failing to meet necessary standards.