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L3M4 Questions and Answers

Question # 6

Which of these statements is a correct description of a contract?

A.

A promise made by a supplier to supply goods or services

B.

An agreement enforceable by law made between two or more people

C.

An offer and acceptance has taken place

D.

A promise made by the buyer to place an order

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Question # 7

A service contract for cleaning is due for expiry after a five-year duration. Which of the following are good sources of data to create a specification for the new invitation to tender?

    Incumbent supplier

    Maintenance services

    Alternative suppliers

    Management information

A.

1, 2 and 3 only

B.

2, 3 and 4 only

C.

1, 3 and 4 only

D.

1, 2 and 4 only

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Question # 8

According to CIPS / Profex, which of the following are not external stakeholders? Select two.

A.

Lenders, such as banks

B.

Shareholders

C.

Trade unions

D.

The media

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Question # 9

‘Members of a team have xxxx skills, and not the same skills’. Select the one which fits best to re-place xxxx.

A.

Complementary

B.

Developing

C.

Conflicting

D.

Identical

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Question # 10

A small group of workers, under the leadership of a supervisor, seeking to make constructive practi-cal small changes to bring about operational improvement in the workplace.

A.

Quality circle

B.

Quality control group

C.

Trade union

D.

Quality initiative

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Question # 11

‘Using expensive equipment for a task when the same task could be done more simply and cheaper another way. Sometimes called “using a sledgehammer to crack a nut” ’. Which one of the ‘wastes’ is being described here?

A.

Motion

B.

Overproduction

C.

Transportation

D.

Excessive processing

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Question # 12

A xxxx team is a group of individuals brought together into a single team from different areas of the organisation.

Select one which best replaces xxxx.

A.

Cross-stitch

B.

Cross-organisational

C.

Cross-functional

D.

Cross-training

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Question # 13

Foodstuffs may arrive from an overseas supplier in a deteriorated state. Is this covered under the implied term of 'satisfactory quality'?

A.

No, it is sale by sample

B.

No, it is sale by description

C.

Yes, the food is not of a reasonable standard

D.

Yes, as the title has not passed yet

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Question # 14

An employee responsible for managing both warehousing and transport in an organisation would best be described as a:

A.

Transport operative

B.

Buyer

C.

Logistics manager

D.

Warehouse supervisor

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Question # 15

Which of the following would be most suitable for a one-off purchase agreement?

A.

New desk fans for a sales office

B.

Copy paper for a printing supplier

C.

Installation of and support for new HR software

D.

Supply of vegetables for an office canteen

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Question # 16

Conscious knowledge of one’s own character and feelings – a cornerstone of emotional intelligence – sometimes described as ‘know thyself’:

A.

Self-selection

B.

Self-development

C.

Self-awareness

D.

Self-interest

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Question # 17

In the application of price adjustment formulae, which of the following would be acceptable for a supplier to increase its selling price?

A.

Rising share prices

B.

Rising fuel costs

C.

Rising market expectations

D.

Rising incidence of defects

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Question # 18

Which of the following might be considered as advantages, to the supplier, of key performance indicators (KPIs)? Select TWO that apply.

A.

They help the supplier to focus on specific critical success factors and maximise effectiveness

B.

They help the supplier to achieve higher productivity by cutting down on other aspects like quality

C.

They help the supplier to avoid confusion arising from unclear expectations from buyers

D.

They help the supplier to share their best cost-saving systems with their competitors

E.

They help the supplier to ensure that they do not exceed the target performance levels

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Question # 19

Which one of the Tuckman stages of team development is being described here?

‘..the team struggles to come together … conflict … competing for status and position’

A.

Storming

B.

Forming

C.

Dorming

D.

Performing

E.

Norming

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Question # 20

You are a procurement manager for a successful electrical component re-seller and distributor. The company presently carries stock of over fifty thousand different items, some of which may be variances of the same product, or similar products from different manufacturers. The managing director of the business is looking to increase the margin on products sold and has asked for your support. It is a competitive industry with a customer base that will be resistant to a price increase. Which of the following could support this request?

A.

Standardize the products purchased

B.

Improve the quality of products purchased

C.

Reduce the range of products purchased

D.

Increase the range of products sold

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Question # 21

'A person who sees the big picture. Thinks accurately and carefully. May lack energy and the ability to inspire others'.

Which one Belbin's team roles is being described here?

A.

Resource-investigator

B.

Co-ordinator

C.

Plant

D.

Monitor / evaluator

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Question # 22

Which of the following would be suitable key performance indicators (KPIs) for suppliers' performance?

    Ensure you have customer loyalty

    Value or percentage of cost reductions obtained

    Win an award in the next 12 months

    Percentage of on-time in-full deliveries

A.

1 and 3 only

B.

2 and 4 only

C.

1 and 4 only

D.

2 and 3 only

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Question # 23

A buyer is in the process of supporting colleagues internally in the drafting of a specification for a new product. They have limited personal knowledge of the product and of the market. They are at the very early stages of drafting the specification and are seeking to increase their knowledge, whilst at the same time, keeping their likely future needs a commercial secret at this stage. Which of the following would be the best method of achieving this?

A.

Interview staff from finance

B.

Advertising on a relevant online forum

C.

General networking at relevant trade events

D.

Issue a formal request for information

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Question # 24

The view that financial rewards are welcome, but are not everything; that workers are willing to take on responsibility and enjoy a problem-solving approach is in line with Theory (Douglas McGregor):

A.

Y

B.

A

C.

Z

D.

X

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Question # 25

‘Processes can be improved simply by organising the work in a way that means people have to move around less’. Which ‘waste’ is being described here?

A.

Motion

B.

Waiting

C.

Overproduction

D.

Transportation

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Question # 26

Which one of the following is unlikely to appear in an organisational procurement manual?

A.

Staff names

B.

Instructions

C.

Policies

D.

Procedures

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Question # 27

As a result of a global pandemic, a local hospital is facing significant patient capacity pressures and would like the construction of a new 50-bed ward to be prioritised and fully operational at the earliest opportunity. Which of the following pricing arrangements would support this aspiration?

A.

Penetration contract pricing

B.

Time and materials arrangement pricing

C.

Fixed price economic adjustment pricing

D.

Incentivised contract pricing

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Question # 28

'XXX theories of leadership are now largely discredited as a means of identifying team leaders'.

This quotation comes from the Profex Publishing textbook for this subject. Which word has XXX replaced?

A.

Trait

B.

Tres

C.

Tait

D.

Tray

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Question # 29

Which of the following are examples of express terms in a contract? Select TWO that apply.

A.

A retention of title term

B.

Term inserted by the Sale of Goods Act 1979

C.

A liquidated damages term

D.

Term inserted through business efficacy test

E.

Term inserted through the custom of the trade

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Question # 30

A buyer is using a framework agreement to purchase office furniture. The buyer invites the four suppliers listed on the framework to quote for the furniture; the winning bid is the lowest price. What would best describe this approach?

A.

Direct call-off

B.

Competitive tender

C.

Quotation exercise

D.

Mini competition

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Question # 31

‘A person who is reliable in seeing a task through to the end’. From the ‘doing / acting’ section, which of the Belbin team roles is being described here?

A.

(An easy one – perhaps too easy)

B.

Shaper

C.

Completer / finisher

D.

Implementer

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Question # 32

R Meredith Belbin made a distinction in his work between 'solo leaders', who were kind-of historic leaders; and 'team leaders' who are seen as being leaders for modern times, or are 'of the future'.

From the list shown, select the one answer which represents the team leader, rather than the solo leader.

A.

Seeks conformity: expects all team members to be similar and act and think the same way.

B.

Sets objectives and separate tasks for individual team members

C.

Encourages diversity, and lets team members be themselves

D.

Plays an unlimited role in team activities

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Question # 33

Which of the following is a qualitative key performance indicator?

A.

To increase on-time in-full deliveries by 40%

B.

To reduce costs by 10% over a year

C.

To improve customer relationships by 20%

D.

To reduce the defect rate to below 25%

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Question # 34

‘The individual does not believe that the change is really happening and looks for evidence that it is not true’. Which stage of the Kubler-Ross model does this describe?

A.

Depression

B.

Frustration and anger

C.

Shock

D.

Denial

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Question # 35

Which of the following approaches could a purchasing organisation use to reduce the level of detail in a specification, without increasing the risk of an unsuccessful procurement process?

    Increase the use of acronyms and abbreviations

    Cross-refer to recognised industry standards

    Require tendering suppliers to propose specifications

    Provide samples to demonstrate the requirements

A.

1 and 4 only

B.

2 and 3 only

C.

1 and 3 only

D.

2 and 4 only

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Question # 36

Contract terms are statements by the parties to the contract as to what they understand their rights and obligations to be under the contract. It is important from the outset that there is a genuine agreement between the parties as to what the contract terms are. After the contract has been made, it is too late for either party to alter its terms unilaterally. Which of the following is another role that negotiated contract terms might play?

A.

Defining conditions and contingencies that may alter the arrangement

B.

Ensuring any future contracts will be on the buyer's terms

C.

Providing a guarantee that the supplier will never fail to perform under any circumstances

D.

Identifying the type of contractual disputes in which the courts might decline to adjudicate

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Question # 37

One of the appendices to a formal contract should be a 'pricing schedule'. This is because price is the most important item of a contract and it is a requirement for it to be detailed in a pricing schedule. Is this a correct statement?

A.

Yes, because the contract is always a very large document and the parties need easy access to price information to negotiate increases

B.

Yes, because all contracts are required to have detailed pricing terms, such as fixed prices, incentives, and price escalation, which must be attached

C.

No, because it is not a requirement to attach a pricing schedule if complex pricing terms are not applicable to that particular contract

D.

No, a pricing schedule is required only if other attachments such as a non-disclosure agreement and insurance policy are also appended

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Question # 38

Which two of the following are personality traits?

A.

Experience in the military

B.

Social skills

C.

Clean current driving licence

D.

Honesty

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Question # 39

A construction company wishes to place the contract for the building of a new hotel with a principal contractor using a model form contract. Which of these is an advantage of using a 'model form contract'?

A.

It avoids the requirement to create complex contracts each time but can be adapted to suit particular circumstances

B.

Incentive payment terms can be included to reward the supplier for attainment of cost savings

C.

Legal advice is still required if significant amendments or variations are to be made to the contract

D.

Formulae or indices can be included to assess any additional supplier's claims for contract price adjustment

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Question # 40

‘Positivity’ is about (choose one):

A.

A tendency to develop theories

B.

A ‘can do’ attitude

C.

Adopting a particular viewpoint

D.

Knowledge of electronics

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Question # 41

Which of the following departments would be both internal customers and internal suppliers of an organisational procurement function? Select all that apply.

A.

Accounting and finance

B.

Legal department

C.

Human resources

D.

Information and communications technology

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Question # 42

Prior to circulating the service specification to a tendering supplier, it is good practice for the purchasing organisation to request completion of a non-disclosure agreement. Is this statement correct?

A.

No, because the non-disclosure agreement only applies after contracting

B.

Yes, because the non-disclosure agreement protects intellectual property

C.

Yes, because the non-disclosure agreement encourages transparent bidding

D.

No, because the non-disclosure agreement has no legal standing

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Question # 43

Kotter and Schlesinger suggested six approaches to organisational change. One approach is based on the idea that people don’t really understand, and by increasing their understanding, commitment could be won. This relatively soft approach to change is called:

A.

Participation

B.

Education

C.

Facilitation

D.

Coercion

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Question # 44

Which two of the following are not personality traits?

A.

Conscientiousness

B.

Determination

C.

Ability to use Microsoft Excel

D.

Never been in trouble with the police

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Question # 45

Which two of the following actions are most likely to be carried out by the buying organisation?

A.

Approve the invoice

B.

Specify the need

C.

Submit the invoice

D.

Acknowledge the order

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