When conducting a competitive tender, is it appropriate to use a supplier’s credit rating as a criteria for pre-section?

When conducting a competitive tender, is it appropriate to use a supplier’s credit rating as a criteria for pre-section?
A . yes- because a low rating would have a negative impact on the company’s reputation
B . yes- because a low rating would indicate the supplier is financially unstable
C . no- because a low rating would not affect the quality of the products supplied
D . no- because a low credit rating would have a negative impact on the supply chain

View Answer

Answer: B

Explanation:

The correct answer is ‘yes- because a low credit rating would indicate the supplier is financially un-stable’.

The two options beginning with no should automatically be discounted. The other option is incorrect because credit ratings are private and would therefore not affect reputation.