CIPS L3M3 Exam Questions Instant Access - No Installation Required

Question 1

Which one of the following is not an 'E' from STEEPLE?

AEconomic

BEthical

CEnvironmental

DEpistemological

Answer : D

Even if you don't know what 'Epistemological' means, you should know it's the odd one out.

It relates to the philosophical study of knowledge.

Question 2

'A purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms on which they will supply specified goods or services which, on ac-ceptance, shall be the basis of the subsequent contract'

ACompetitive dialogue

BRequest for information

CInvitation to tender

DExpression of interest

Answer : C

The 'firm and unequivocal offer' and 'the basis of a contract' indicate the reference to a formal and binding tender procedure. The answer is therefore 'invitation to tender'.

Question 3

'Profit is not a cost'. True or false?

ATrue

BFalse

Answer : A

This is true. Profit is what is left over after you've covered all your costs. In simple terms.

Question 4

A contract clause indicating damages to be recovered in the event of under-performance, with the proposed damages being a genuine pre-estimate of loss, is called a:

APunitive damages clause

BLiquidated damages clause

CPenalty clause

DUnliquidated damages clause

Answer : B

Liquidated damages clause.

The QUESTION NO : is pretty much a definition of a liquidated damages clause.

Question 5

After a framework arrangement is in place, a further XXXX competition can be held. Which word replaces XXXX?

AMini

BMaxi

CMicra

DMicro

Answer : A

A mini-competition may be held to select a supplier, depending on the wording in the framework arrangement documentation and circumstances at the time.

Question 6

'When the best XXX is selected, a formal YYY ZZZ is prepared and sent to the supplier. Choose the most likely words to replace XXX, YYY and ZZZ.

ASpecification, purchase order

BSpecification, delivery address

CQuotation, purchase order

DQuotation, order acknowledgement

Answer : C

The best quotation is selected, which would meet the specification as well as meeting the other re-quired criteria; and in order to progress things round the procurement cycle, a purchase order would be issued.

Question 7

Tolerate, transfer, terminate or ...?

ATake

BTry

CTest

DTreat

Answer : D

This is about risk, and the answer is 'treat'.

Risk management strategies can be classified into 'the 4 T's', which you need to know for your ex-am.

Treating the risk is essentially seeking to minimise the likelihood or impact of the risk. An example might be to carefully monitor key suppliers' ongoing financial performance to minimise the likeli-hood of their going into liquidation during the course of a contract with us. Etc.

CIPS Contract Administration L3M3 Exam Questions