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Procurement and Supply Environments Question and Answers

Procurement and Supply Environments

Last Update May 18, 2024
Total Questions : 90

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Questions 1

The total variety of life on Earth’ is CIPS’ definition of:

Options:

A.  

Depletion of renewables

B.  

Biodiversity

C.  

The environment

D.  

Corporate Social Responsibility

Discussion 0
Questions 2

An organisation is...

Options:

A.  

A social arrangement for the controlled performance of collective goals

B.  

A collection of social people controlling performance of arranged goals

C.  

A social arrangement for the collective performance of controlled goals

Discussion 0
Questions 3

‘A - - - - - - - - is a price in which the supplier and buyer agree that the supplier can charge a price based on actual costs incurred, plus a margin for profit’.

Options:

A.  

A whole life cost

B.  

A target cost incentive price

C.  

A fixed price

D.  

A cost-based price

Discussion 0
Questions 4

‘The optimum combination of whole life costs and quality’ is one definition of:

Options:

A.  

Quality circles

B.  

Life cycle costing

C.  

Contractual agreement (in English law)

D.  

Value for money

Discussion 0
Questions 5

An arrangement between a buyer and a supplier in which they agree to apportion benefits (such a reduced costs, or increased outputs) arising from particularly sound contract performance may be called:

Options:

A.  

Painshare

B.  

Stocks and shares

C.  

Fair share

D.  

Gainshare

Discussion 0
Questions 6

'In the not-for-profit sector, funding often comes from those who do not benefit directly from the service provision.' True or false?

Options:

A.  

False

B.  

True

Discussion 0
Questions 7

The idea / practice that some users / internal customers will spend organisational funds without in-volving procurement professionals when required to do so by organisational rules, is called:

Options:

A.  

Off balance sheet procurement

B.  

Nonconformist procurement

C.  

Merchandise buying

D.  

Maverick buying

Discussion 0
Questions 8

Measurement of an organisation’s carbon footprint uses which gas as a standard measure?

Options:

A.  

CO

B.  

CO2

C.  

H2O

D.  

CO3

Discussion 0
Questions 9

Which of the following are examples of renewable resources?

Options:

A.  

Hydro-electric

B.  

Coal

C.  

Oil

D.  

Wind power from wind turbines

Discussion 0
Questions 10

The film 'An Inconvenient Truth', made by former US Vice-President, Al Gore, is about:

Options:

A.  

Political lobbying and corruption

B.  

Biodiversity

C.  

Climate change

D.  

Ethics in commercial environments

Discussion 0
Questions 11

The system by which organisations are directed and controlled, thinking about business ethics and stakeholder responsibility, and where Directors may be held to account, is called:

Options:

A.  

Corporate Identity

B.  

Corporate Social Responsibility

C.  

Corporate Manslaughter

D.  

Corporate Governance

Discussion 0
Questions 12

Which one of the following is a commercial document issued by a buyer describing requirements for products or services to be provided by a seller?

Options:

A.  

Requisition

B.  

Purchase order

C.  

Invoice

D.  

Supplier quotation

Discussion 0
Questions 13

Fiscal policy deals with:

Options:

A.  

Government decisions and actions regarding the number of staff members employed in the government Treasury

B.  

Government decisions and actions regarding the level of interest rates and supply of money in the economy

C.  

Government decisions and actions regarding the balance between taxation revenue and public expenditure

D.  

Government decisions and actions regarding exchange rates and unemployment in the economy

Discussion 0
Questions 14

‘Cost transparency’ is the notion that:

Options:

A.  

The buyer will reveal its’ actual costs to the seller

B.  

Both sides will reveal their costs to each other

C.  

The seller will reveal its’ actual costs to the buyer

D.  

Cost is not an issue

Discussion 0
Questions 15

The study of population and population trends is called:

Options:

A.  

Demographics

B.  

Demagoguery

C.  

Hieroglyphics

D.  

Topography

Discussion 0
Questions 16

'Shareholders are an example of stakeholders'. True or false?

Options:

A.  

True

B.  

False

Discussion 0
Questions 17

Think carefully.

There is low consumer demand; production capacity is unused; prices are stable or are falling; busi-ness profits are low; unemployment is high; and business confidence is low. Is this:

Options:

A.  

Recovery

B.  

Recession

C.  

Boom

D.  

Depression

Discussion 0
Questions 18

A market situation where there is only one supplier is called:

Options:

A.  

Oligopoly

B.  

Imperfect competition

C.  

Monopsony

D.  

Monopoly

Discussion 0
Questions 19

Measurement of an organisation’s carbon footprint uses which gas as a standard measure?

Options:

A.  

H2O

B.  

CO

C.  

CO2

D.  

CO3

Discussion 0
Questions 20

Which of the following would not be part of the not-for-profit sector?

Options:

A.  

Trade unions

B.  

A religious organisation, such as a church or a mosque

C.  

Professional bodies such as CIPS

D.  

A local independent supermarket

Discussion 0
Questions 21

Which of the following constitute non-tariff barriers to trade?

Options:

A.  

Increased import duties

B.  

Complex customs procedures and paperwork for any goods crossing borders

C.  

Reduced import duties

D.  

Government subsidies to domestic producers

Discussion 0
Questions 22

Which one of the following initiates the procurement process inside the buying organisation, calling for action by the procurement professionals?

Options:

A.  

Request for quotation

B.  

Invoice

C.  

Specification

D.  

Requisition

Discussion 0
Questions 23

Which of the following would often be subject to health and safety legislation?

Options:

A.  

The need for appropriate firefighting equipment in a factory

B.  

The manual lifting of heavy objects

C.  

Floors, passages and stairs should be properly constructed, maintained and kept clear

D.  

Smoking cigarettes inside offices, factories and other buildings

Discussion 0
Questions 24

The letters 'MNC' stand for:

Options:

A.  

Multi-national co-operative

B.  

Multi-national corporation

C.  

Multi-national conglomerate

D.  

Multi-national company

Discussion 0
Questions 25

Which of the following is least risky from the buyer’s viewpoint?

Options:

A.  

Payment on delivery

B.  

Payment of 50% at time of order; with balance to be paid 90 days after delivery

C.  

Payment in full at time of order

D.  

Payment 60 days after delivery

Discussion 0
Questions 26

Why is procurement governance important?

Select all that apply.

Options:

A.  

It's not important

B.  

Procurement has sway over large sums of organisational funds

C.  

There may be potential opportunities to commit fraud

D.  

Procurement’s decisions benefit some suppliers over others

Discussion 0
Questions 27

Under a contract with a price adjustment clause, which of the following would commonly be grounds for price adjustment (depending on the precise contract terms)?

Options:

A.  

Quality problems brought about by supplier’s haste to complete the contract to aid their cashflow

B.  

Substantially escalating materials costs

C.  

Exchange rate fluctuations

D.  

Desire by shareholders to have increased profits

Discussion 0