Management Information System (MIS) Practice Exam

________ is a form of e-auction where buyers post a request for quote.

1. A forward auction

2. A reverse auction

3. Bartering

4. An exchange

The correct answer is: A reverse auction

A reverse auction is a form of e-auction where buyers actively post a request for quotes from sellers, inviting them to bid against each other to offer the lowest price for their goods or services. This is in contrast to a forward auction, where sellers offer goods and buyers bid to purchase them. In a reverse auction, the roles are reversed; instead of buyers competing against each other, sellers compete to fulfill the buyer's request at the most favorable price. This mechanism is often used in procurement processes to enable organizations to source products or services at the best possible price. The transparency and competitive nature of reverse auctions can lead to lower costs for buyers and increased efficiency in the procurement process. The other options do not accurately depict this scenario of buyer-initiated requests for quotes, which is why they are not the correct answer.