CIPS Ethical Procurement and Supply L3M2 Exam Practice Test

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Total 90 questions
Question 1

According to the Profex textbook for this subject, specifications are said to be 'the heart of the con-tract'.



Answer : B


Question 2

Disclose, distance, delegate, ...?



Answer : B

Disassociate is the correct answer.

This is the 4 D's model of how to deal with a conflict of interest.

'Discombobulate' means to disconcert or confuse, as if you didn't know.


Question 3

Where performance of the contract may be impossible because of external unforeseen factors, this may be called:



Answer : A

A force majeure clause in a contract may give rights to either party to suspend its obligations in the event of something untoward happening which is outside the control of the parties.

Examples might volcanic dust clouds, tidal waves or a pandemic. Often lesser events trigger (or are used to try to trigger) the use of such a clause.


Question 4

The usefulness of lifetime costing is for decision-making about whether to acquire an asset with an expected:



Answer : D

Lifetime costing is of greatest applicability when an asset has a long life.


Question 5

In the period in question, the budget for staff overtime and bonuses is zero.

The actual expenditure is 2,900.

Is this variance:



Answer : C

The variance is adverse - more was spent than budgeted - this is not favourable.


Question 6

Select the two words which explain least well why the procurement of services can be more chal-lenging than the procurement of physical products:



Answer : A, D

The correct answers to the QUESTION NO : are: 'unimaginable' and 'permeable'. 'Permeable' makes no sense here; and it is possible to imagine both physical products and services.

The other four answers are distinguishing features of services, which result in services being more challenging to buy.


Question 7

The purpose of a specification is (select all that apply):



Answer : A, C, D

All of the ones shown, except acting as a means of exchange, which is one of the parts of a defini-tion of money.


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Total 90 questions