Certified Professional Public Buyer (CPPB) Practice Test

Which authority types are defined in procurement practices?

1. Express, implied, apparent

2. Mandatory, conditional, assumed

3. Delegated, direct, indirect

4. Formal, informal, traditional

The correct answer is: Express, implied, apparent

The correct answer identifies the types of authority that are fundamental in procurement practices. Express authority refers to clear and direct permission granted to an individual or entity to act on behalf of another in a procurement context, often delineated in contracts or organizational policies. Implied authority relates to powers that are not explicitly stated but are understood as necessary for carrying out the responsibilities associated with express authority. Apparent authority arises when a third party reasonably believes that an agent has the authority to act, based on the principal's representations or behavior, even if such authority does not officially exist. These authority types are essential in procurement to ensure that individuals making purchasing decisions are properly authorized, which minimizes risks related to unauthorized transactions and potential legal liabilities. Understanding the nature of these authority types helps procurement professionals navigate complex negotiations and contractual agreements effectively, reinforcing the importance of clear communication and documentation in public buying scenarios. While the other options mention different categorizations, they do not specifically address the recognized authority types that clarify how procurement actions are executed and authorized. Thus, the emphasis on express, implied, and apparent authority in procurement practices is critical for ensuring compliance and accountability.