Answered: Define competitive bids (security…

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Define competitive bids (security offerings)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 6DQ

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Question

Define competitive bids (security offerings)

Expert Solution

Step 1

Competitive bidding is the procedure where multiple vendors are invited to offer their prices for the particular item or the security which the company is intend to sell.

Step 2

It is called competitive bidding as it allows transparency, equal opportunity to all the investors and can ensure that the outcome represent the best possible value that can be obtained.

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