Procurement of Equipment Quiz

Supply management personnel often function as consultants in the procurement of equipment.

Retail sales outlets are a primary source of used equipment.

Financial leases are usually short-term.

Destructive testing should be conducted prior to purchasing used equipment.

Potential penalties are not usually included in a lease contract.

Firms utilize leases because they are not interested in ownership and want freedom and flexibility.

Supply management personnel play a passive role in the procurement of equipment.

Used equipment brokers are considered a primary source for acquiring used equipment.

Before purchasing used equipment, a buyer should conduct destructive testing on the equipment.

Operating leases are typically long-term agreements used to facilitate business operations.

The length of a financial lease is usually longer than the life of the equipment being leased.

Lease contracts typically include provisions for acceptance testing, inspection conditions, and guarantee conditions.