State whether each statement is TRUE or FALSE.

Question $1$ options:

To reduce risk, a buyer should insist on a cost$-$based contract.

A purchase order is a legally binding offer to purchase a service from a supplier.

Negotiation is the best method for purchasing a new car from a dealership.

An RFQ is suitable for purchasing standard items offered by many suppliers.

An SOW may be drafted by the purchaser or the supplier.

$1.$

TRUE

$2.$

FALSE