Which practice involves obtaining prices from multiple vendors to ensure the lowest price for the same quality?

• A. Collective Bargaining Agreement
• B. Competitive bids
• C. Cobra
• D. Conflict resolution

Answer: (B)

Competitive bidding is the practice of inviting several vendors to submit prices for the same specifications, then comparing those offers to choose the best value. By standardizing what’s being purchased, you can judge offers not just by the lowest price but by the overall value—price plus quality, delivery, and service. This approach encourages fair competition among suppliers and helps ensure you’re paying the lowest cost for the required level of quality, which is why it’s commonly used in purchasing operations for ingredients, equipment, and other goods in hospitality.

The other options don’t fit this use: a collective bargaining agreement covers labor terms between unions and employers, COBRA relates to continuing health coverage after employment ends, and conflict resolution deals with settling disputes rather than obtaining supplier prices.