CIPS L3M3 Contract Administration Exam Practice Test

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Total 90 questions
Question 1

Intangibility means:



Answer : D

Inability to touch something.

Services are intangible, which may present challenges when specifying / buying.


Question 2

Assume you calculate a selling price by adding a profit element onto costs. Assume the profit ele-ment is equivalent to 100% of costs.

Is mark-up or margin being described here?



Answer : D

When price is discussed as a % of costs to be added on, the term is 'mark-up'.


Question 3

Win-win negotiation is not commonly described as a (choose the most appropriate):



Answer : D

Win-win negotiation is not a 'zero-sum game': the sum of the value achieved is greater than zero - fresh value is created. It is a 'positive sum game'.


Question 4

Which of the following are genuine pieces of legislation in the UK?



Answer : C

All of them.

This QUESTION NO : is a bit of a gift for you, but you may wish to just think about the dates and the nature of the legislation. If there is any UK bias in your CIPS examination, this may be time well spent. For students based in the UK: these Acts are powerful and significant. At managerial level at least, one would wish to be familiar with the broad thrust of each of these, plus the implications of The Equality Act.


Question 5

In a reverse online auction:



Answer : C

Bidders compete against each other, reducing bid prices until one winner is found - this is the sub-mission of the lowest-priced bid (unless stated otherwise in the auction documentation).


Question 6

The expression 'consideration' means:



Answer : B

Consideration is one of the essential elements of a contract in English law, and it essentially means the exchange of something of value for something else of value, typically goods or services for money.

Normally it is the price to be paid in exchange for goods or services.


Question 7

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



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.


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Total 90 questions