Which term refers to a business owned and operated by individuals who are socially or economically disadvantaged; often the focus of supplier diversity programs?

Which term refers to a business owned and operated by individuals who are socially or economically disadvantaged; often the focus of supplier diversity programs?

• A. Disadvantaged Business Enterprise (DBE)
• B. Local Preference
• C. Supplier Relationship Management
• D. Set-Aside

Answer: (A)

This question tests understanding of supplier-diversity terminology. A business owned and operated by individuals who are socially or economically disadvantaged is called a Disadvantaged Business Enterprise, or DBE. These enterprises are the focus of supplier-diversity programs that aim to open public contracting opportunities to firms owned by historically disadvantaged groups. Local Preference policies concern giving preference to local vendors, not necessarily tied to disadvantage. Supplier Relationship Management is about managing supplier performance and relationships, not about the ownership characteristics of a business. Set-Aside policies reserve contracts for specific groups or types of vendors; while a DBE can be eligible under set-aside programs, the term that specifically names the type of business is Disadvantaged Business Enterprise.

This question tests understanding of supplier-diversity terminology. A business owned and operated by individuals who are socially or economically disadvantaged is called a Disadvantaged Business Enterprise, or DBE. These enterprises are the focus of supplier-diversity programs that aim to open public contracting opportunities to firms owned by historically disadvantaged groups. Local Preference policies concern giving preference to local vendors, not necessarily tied to disadvantage. Supplier Relationship Management is about managing supplier performance and relationships, not about the ownership characteristics of a business. Set-Aside policies reserve contracts for specific groups or types of vendors; while a DBE can be eligible under set-aside programs, the term that specifically names the type of business is Disadvantaged Business Enterprise.