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16 Apr 2025, 05:35
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The company’s CEO has established the following guidelines for approving new equipment vendors:
1. The vendor must have minimum assets of $1.5 million.
2. The vendor must purchase electrical components from either ABB or Schneider.
3. The vendor must have at least 5 years of experience in the industry.
4. The vendor must provide at least two client references from Fortune 500 companies.
1. The vendor must have minimum assets of $1.5 million.
2. The vendor must purchase electrical components from either ABB or Schneider.
3. The vendor must have at least 5 years of experience in the industry.
4. The vendor must provide at least two client references from Fortune 500 companies.
Based on the information provided, select Yes if the statement can be concluded. Otherwise, select No.
| Yes | No | |
| The vendor offering the lowest total cost does not meet all of the CEO’s guidelines. | ||
| All four vendors meet the minimum asset requirement. | ||
| Exactly two vendors meet all of the CEO’s eligibility criteria. |
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Official Answer
The vendor offering the lowest total cost does not meet all of the CEO’s guidelines.: Yes
All four vendors meet the minimum asset requirement.: Yes
Exactly two vendors meet all of the CEO’s eligibility criteria.: Yes
16 Apr 2025, 05:35
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Official Solution:
• The vendor offering the lowest total cost does not meet all of the CEO’s guidelines.
Vendor B has the lowest total cost: $470,000 + $30,000 + $20,000 = $520,000.
However, Vendor B has only 1 Fortune 500 reference. The CEO requires at least 2. Therefore, Vendor B does not meet all guidelines. Answer: Yes.
• All four vendors meet the minimum asset requirement.
The CEO requires at least $1.5 million in assets. Vendor assets are:
Vendor A: $50M, Vendor B: $20M, Vendor C: $10M, Vendor D: $12M.
All are above the minimum threshold. Answer: Yes.
• Exactly two vendors meet all of the CEO’s eligibility criteria.
Vendor A and Vendor C meet all four criteria: assets, approved supplier, experience, and references.
Vendor B fails the reference requirement. Vendor D uses an unapproved electrical supplier. Answer: Yes.
Correct answer:
The vendor offering the lowest total cost does not meet all of the CEO’s guidelines. "Yes"
All four vendors meet the minimum asset requirement. "Yes"
Exactly two vendors meet all of the CEO’s eligibility criteria. "Yes"
Bunuel
• The vendor offering the lowest total cost does not meet all of the CEO’s guidelines.
Vendor B has the lowest total cost: $470,000 + $30,000 + $20,000 = $520,000.
However, Vendor B has only 1 Fortune 500 reference. The CEO requires at least 2. Therefore, Vendor B does not meet all guidelines. Answer: Yes.
• All four vendors meet the minimum asset requirement.
The CEO requires at least $1.5 million in assets. Vendor assets are:
Vendor A: $50M, Vendor B: $20M, Vendor C: $10M, Vendor D: $12M.
All are above the minimum threshold. Answer: Yes.
• Exactly two vendors meet all of the CEO’s eligibility criteria.
Vendor A and Vendor C meet all four criteria: assets, approved supplier, experience, and references.
Vendor B fails the reference requirement. Vendor D uses an unapproved electrical supplier. Answer: Yes.
Correct answer:
The vendor offering the lowest total cost does not meet all of the CEO’s guidelines. "Yes"
All four vendors meet the minimum asset requirement. "Yes"
Exactly two vendors meet all of the CEO’s eligibility criteria. "Yes"
07 Nov 2025, 01:36
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I think the statement 1 is ambiguous. The answer would be "No" if you stress out on "all" while reading. It meets 3 of the 4 guidelines, and it's not true that 0/4 guidelines are meet.
