CIPS Ethical Procurement and Supply L3M2 Exam Questions

Page: 1 / 14
Total 90 questions
Question 1

The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.



Answer : D

As less has been spent than budgeted, the variance is favourable.


Question 2

You work as a buyer for a large international corporation. You are currently involved in negotiating a high-value contract, and one of the supplier's representatives offers to take you to a dog-racing event, with all expenses paid. The offer is open to the whole of your procurement team. What do you do?



Answer : A

Surely you know readily you should decline?


Question 3

Where the buyer's and seller's conditions of contract clash, this is commonly known as 'the battle of the...'



Answer : D

Buyers should work hard to ensure that their terms and conditions apply to the contract between buyer and seller.

They should seek to win 'the battle of the forms'.


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

'A high degree of skill or expertise'



Answer : A

This is a definition of 'proficiency'.


Question 6

'EBI' stands for:



Answer : B

Early buyer involvement


Question 7

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.


Page:    1 / 14   
Total 90 questions