CIPS Ethical Procurement and Supply L3M2 Exam Questions

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Total 90 questions
Question 1

A single purchase agreement created to cover multiple repeat orders for supplies from a single source, is called a:



Answer : A

Requirements are 'called off' from a single contract.


Question 2

The crime of obtaining money through threats or force, is called:



Answer : D

This is a definition of extortion.

The other terms shown as possible answers are within the syllabus for this course and may be the subject of other questions within this test.


Question 3

XXXX can be defined as 'easy and timely access to information', according to the Profex textbook for this subject. What is XXXX?



Answer : D

Transparency.


Question 4

A margin within which a specification can vary slightly -- the outer limits of what is acceptable to the buyer -- can be described as:



Answer : C

The correct answer is 'tolerances'. The tighter the tolerance ie the more restrictive the specification, the more challenging for a supplier to deliver, and the more costly it is likely to become.


Question 5

Lifetime costs are also known as (choose two):



Answer : C, D

Lifetime costing, TCO and whole life costing are essentially the same concept - looking at buying based on total costs over the useful life of an asset, not just the purchase price. Although this con-cept seems obvious once you know it, very many people, including senior managers as well as politi-cians, seem to be unfamiliar with the notion.


Question 6

Which of the following most closely represents 'the five rights'?



Answer : C

Quality, quantity, price, place, time. You will need to memorise these.

Note that for CIPS purposes, none of: goods (product or service), manner (ethics) or supplier, is in-cluded in this list. For the sake of ease, perhaps best to just go along with CIPS' view.


Question 7

The formal appraisal of a current supplier, measured in terms of factors such as quality, timeliness of delivery, etc is known as:



Answer : A

Once a supplier is contracted, monitoring performance is vendor rating.

Prior to a supplier being contracted, attempting to understand what their performance would be like is called 'supplier appraisal'.


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Total 90 questions