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Suppose you own a small business that makes nuts and bolts for machines. You would like to compete for a bid to make nuts and bolts for the U.S. military. You could submit a low bid to beat your competitors’ proposals. However, you know that your costs will be higher than what is shown on your bid. Is this ethical? Explain your answer.

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2 votes

Answer:

No

Step-by-step explanation:

Submitting a low bid for a job when you know that your costs will be higher than what is shown on your bid is not ethical. This practice, known as bidding low and going over budget, can lead to cost overruns, delays, and potential financial losses for your business and the U.S. military.

If you win the bid based on a low offer, but end up spending more than what was allocated or planned for in the budget, you could face legal consequences or lose your reputation as a reliable vendor. It is important to be honest and transparent with your estimates and to factor in all potential costs and expenses when submitting a bid. Otherwise, you will not be able to deliver the goods or services that you have promised, and your reputation will suffer.

In general, submitting a low bid with the intention of later asking for higher payments or adjustments is unethical and can put your company at risk. This practice is considered fraudulent and may also violate contract laws. It is important to be transparent and honest in all aspects of your business dealings, including submitting bids for contracts.

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