Student Signature True/False Questions: Place an "X" in the box next to the correct answer True A high Return on Assets (ROA) is an indication that a company has a high level/value of assets compared to a low profit margin. False True The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function's performance against a set of standards or industry benchmarks. False True Rationalizing the supplier base would mean that the purchasing firm is attempting to reduce the number of suppliers in its supplier network. False True COOJET A Supplier Code of Confact is intended to inform suppliers of ethical sourcing expectations and is typically a condition for becoming an approved supplier. False True False Forward Vertical Integration refers to a company acquiring one or more of their sources of supply. True False In-sourcing is defined as reverting to in-house production when external quality, delivery, and services do not meet expectations. True The process to evaluate a supplier's capabilities, and their capacity to supply a product or False service to the buyer, is known as Supplier Certification. True The purchasing tool described as "A detailed capabilities document used to determine a supplier's capability and interest in the production of a product or service" is called a Request False for Proposal (RFP). True A Purchase order is legally binding once it is officially issued by the buyer to the supplier. False Page 1 of 8