Undisclosed payments made by vendors to employees of purchasing companies are referred to as:
Click on the arrows to vote for the correct answer
A. B. C. D.B
The correct answer is B. Kickbacks.
Kickbacks are secret and illicit payments made to employees of a purchasing company by vendors or suppliers in exchange for favorable treatment in the procurement process. Kickbacks can take many forms, such as cash, gifts, or services, and can be made directly or indirectly through a third party.
Kickbacks are a form of bribery and are illegal in most jurisdictions. They are a serious fraud risk and can result in significant financial losses for the company, as well as damage to its reputation.
Bid-rigging is a form of collusion between vendors to manipulate the procurement process in their favor, often by submitting artificially high bids to ensure that a particular vendor wins the contract. Presolicitation is the process of gathering information about potential vendors before issuing a request for proposals or bids. Neither bid-rigging nor presolicitation refers to undisclosed payments made by vendors to employees of purchasing companies.