Which of the following best defines the term "procurement"?

The term "procurement" is best defined as the acquisition of goods and services from external sources, which encompasses a wide range of activities that organizations engage in to acquire the necessary inputs for their operations. This definition captures the essence of procurement by emphasizing its focus on sourcing materials, products, and services needed to meet organizational goals.

Procurement is a critical function in both the public and private sectors, involving various strategies and processes, including identifying needs, selecting suppliers, negotiating terms, and managing supplier relationships. It goes beyond just buying; it includes assessing suppliers, ensuring quality, and obtaining value for money.

The other options, while related to aspects of procurement or supply chain management, do not encompass the full scope of procurement itself. For instance, attracting businesses through competitive bidding is a method used within the procurement process but does not define what procurement is. Similarly, negotiating maintenance contracts pertains to a narrower aspect of working with suppliers than procurement as a whole, and managing inventory is a separate function related to logistics and inventory control rather than the overarching process of acquiring goods and services.