CIPS L3M1 Procurement and Supply Environments Exam Practice Test

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Total 90 questions
Question 1

The letters 'MNC' stand for:



Answer : B

'Multi-national corporation' is the correct answer. Very large international organisations, with very large turnover, purchasing power and influence. Examples would include: Alphabet, Amazon, Ap-ple, Dell, Ford, Shell, Toyota, etc


Question 2

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



Answer : D

This should be an easy question.

If you are unfamiliar with any of these terms, return to your textbook soon.

The RFQ is the action taken by procurement often, further to the requisition and other necessary documentation.


Question 3

Which one of the following is a document describing the requirement of a buying organisation, and may be used in seeking quotations or in a tender process? It may take the form of a written descrip-tion, drawing, model, chemical formula, etc.



Answer : A

Specification is the answer. The second sentence in the rubric makes it clear that this is the correct answer.


Question 4

In one format for describing socio-economic groupings, skilled, semi-skilled and unskilled working class people would be classified as:



Answer : B

This is a broad group of people deriving income from employment, including some skilled people through to unskilled.

A, B and C1 would be those people often referred to as upper middle class or upper class; whereas E would describe a broad group of the poor, the unemployed, etc.

These are rough generalisations regarding people's likelihood of income, taste, lifestyle, etc. To take an extreme example, there is probably not much point in trying to market Dom Perignon (an expen-sive brand of champagne) to the E group. But the E group might welcome promotion of a low-cost brand of tobacco or cigarettes.


Question 5

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



Answer : B

CO2 is the correct answer - carbon dioxide.

CO is carbon monoxide; H20 is water (or steam or ice) and CO3 is carbon trioxide.


Question 6

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



Answer : C

A well-known measure of carbon footprint.

Procurement professionals are encouraged to incorporate environmentally-friendly thinking into their workplace activities and decision-making.


Question 7

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



Answer : A, B, C, D

All answers are correct. Each of these areas can create safety hazards for people in the workplace, and so in many countries government legislation has been passed to make these topics subject to regulation.

For example, within the UK, it is mandatory for employers to provide compulsory training for em-ployees who may be involved in lifting heavy items, and there are limits placed on the weight which can be handled by any one person. In many cases, mechanised lifting equipment is used to aid or replace humans.


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Total 90 questions