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Smith is a supply manager for BCD, Inc.

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Smith is a supply manager for BCD, Inc. While planning for a solicitation involving high-volume parts, Smith learns that one of the potential suppliers has recently hired, as account executive, a close relative of Smith's. The relative owns a large block of shares in the supplier's company. In this situation, which of the following is the BEST course of action for Smith to take?

A.

Discuss the potential conflict of interest with the department supervisor and jointly determine how to proceed

B.

Advise the supplier that it cannot submit a bid, as it would create a conflict of interest

C.

Continue with the sourcing process and discuss the situation with the department supervisor if the supplier submits a competitive bid

D.

Prepare a memorandum outlining the situation and place it in the transaction file

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