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Question # 4

Because services are intangible, the key performance indicators for services are likely to be qualitative in all circumstances. Is this statement correct?

A.

Yes, services cannot be owned nor stored and therefore their quantities are not measurable

B.

Yes, there are no possible units by which services can be measured because they are intangible

C.

No, although services are intangible, they can be measured in terms of time or space covered

D.

No, although services are intangible, they are measurable but only in qualitative terms

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Question # 5

Which of the following could be sent to suppliers under the heading of a 'performance specification'?

    A set of required quality levels

    A set of engineering drawings

    A set of required safety levels and controls

    A sample of the product

A.

1 and 2 only

B.

2 and 4 only

C.

1 and 3 only

D.

2 and 3 only

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Question # 6

Drafting a specification is important because these documents become embedded within the contract and therefore, are legally binding. Is this statement true?

A.

No, as the specification is separate to the contract and has no legal standing

B.

Yes, because all specifications must be approved by the organisation's board according to legislation

C.

No, because legally binding contracts only contain terms and conditions

D.

Yes, care needs to be taken because the specification should be part of the contract

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Question # 7

Thinking of Tannenbaum and Schmidt’s work, which of the following terms describes a leader @who is not a dictator, but nonetheless makes the decisions. The team depends heavily on the lead-er, and what the leader says'.

A.

Autocratic

B.

Dictatorial

C.

Laissez-faire

D.

Democratic

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Question # 8

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 # 9

‘Collaborate, communicate, XXXX and coerce’. Select the missing term.

A.

Decide

B.

Dictate

C.

Consult

D.

Direct

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Question # 10

A UK telecommunications company, UKTC Limited, wants to procure innovative equipment to increase its network provision. UKTC has limited expertise in the newer technology. What should UKTC do first to help develop its specification? Select TWO that apply.

    Undertake market engagement

    Confirm the budget with the finance team

    Prepare a performance specification

    Ask the engineering team for suggestions

A.

1 and 2

B.

1 and 3

C.

3 and 4

D.

2 and 3

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Question # 11

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 # 12

Which of the following is a benefit from compliance with procurement processes and procedures? Select all that apply.

A.

Reducing error

B.

Minimising the likelihood of damage to the organisation's reputation

C.

Avoiding unnecessary costs

D.

Reducing the opportunity for fraud / crime

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Question # 13

Which one of the following is very commonly seen as being the primary role of the procurement function (especially by those outside the procurement function)?

A.

And yet on many occasions, it should not be the primary focus.

B.

Cost reduction

C.

Sourcing new materials for products under development

D.

Developing deep relationships with long-term suppliers of key goods and services

E.

Participating in international procurement conferences and developing staff

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Question # 14

Which of these examples constitutes an invitation to treat? Select TWO that apply.

A.

A supplier responds to your invitation to treat

B.

The price quoted in a supplier's price list

C.

The price of goods advertised on a supplier's website

D.

A supplier sends a detailed quotation through the post

E.

The submission of a tender

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Question # 15

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 # 16

In the Kubler-Ross Change Curve, which of these comes second?

A.

Shock

B.

Integration

C.

Denial

D.

Depression

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Question # 17

Thinking about the PESTEL model, under which category would climate change most suitably fall?

A.

Environmental

B.

Legal

C.

Economic

D.

Socio-cultural

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Question # 18

Within the overall philosophy of just-in-time production, a signalling system to indicate when the next stage of the production process needs output from the previous stage, is called:

A.

Heijunka

B.

Kaizen

C.

Kanban

D.

Lankan

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Question # 19

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 # 20

‘operating at its full potential … working positively … getting on with their jobs’

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

A.

Norming

B.

Storming

C.

Forming

D.

Dorming

E.

Performing

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Question # 21

As part of a tender, which of the following are advantages that a purchasing organisation would expect to achieve by specifying that suppliers hold certification to an international environmental management standard, such as ISO 14001?

    It provides assurance that bidders have achieved a common standard of practice

    It provides a guarantee that any polluting suppliers will be unable to tender

    The standard is recognisable to local and international bidders

    It removes the need to conduct internal environmental training

A.

3 and 4 only

B.

1 and 3 only

C.

1 and 2 only

D.

2 and 4 only

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Question # 22

Thinking about the STEP / PESTEL / STEEPLE model, into which two categories would taxation most suitably fall?

A.

Socio-cultural

B.

Political

C.

Technological

D.

Economic

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Question # 23

‘Doing things for less cost’ is a description of:

A.

Effectiveness

B.

Efficiency

C.

Economy

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Question # 24

Taiichi Ohno came up with the notion of the ‘wastes’. How many wastes?

A.

7

B.

5

C.

4

D.

6

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Question # 25

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 # 26

Express terms are terms stated in the contract between the parties. Which of the following are commonly-used express terms?

A.

Terms found in the Unfair Contract Terms Act 1977, payment terms, and passing of title

B.

Time of performance, passing of title, and terms based on trade custom

C.

Time of performance, payment terms, and passing of title

D.

Force Majeure, terms found in the Sale of Goods Act 1979, and payment terms

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Question # 27

An expediter would be expected to primarily:

A.

Undertake purchasing research

B.

Deliver in-house procurement training

C.

Chase up late or potentially late deliveries

D.

Pay invoices

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Question # 28

Goals should be either / or (choose two):

A.

SMARTIES

B.

SMARTA

C.

SMART

D.

SMARTLY

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Question # 29

The view that workers are naturally lazy, avoid responsibility and are without ambition is in line with Theory (Douglas McGregor):

A.

Z

B.

X

C.

Y

D.

A

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Question # 30

Peter Kraljic first published his Portfolio Purchasing Model in a paper entitled ‘Purchasing Must Become Supply Management’ in the Harvard Business Review in September of which year?

A.

1943

B.

2013

C.

1983

D.

2003

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Question # 31

‘All procurement requirements valued at more than $100,000 must be competitively tendered, and any contracts arising therefrom must be signed by the Procurement Director’. This is an example of a:

A.

Procurement threshold

B.

Minimum order quantity

C.

Standard contract term

D.

Statute

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Question # 32

Thinking about PEST, etc: under which heading would exchange rates and inflation fit?

A.

Political

B.

Technological

C.

Economic

D.

Social

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Question # 33

It is said that society is undergoing the ‘fourth industrial revolution’. Which description most close-ly defines this idea?

A.

The development of equalities thinking, respect for others, reduced working hours, working from home, discussion of a universal basic income

B.

The use of electric power to create mass production

C.

The bringing together of various technologies, such as artificial intelligence, efficient en-ergy storage, 3D printing, quantum computing, etc

D.

The use of outsourcing, low-cost labour, offshoring and modern slavery

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Question # 34

‘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 # 35

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 # 36

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 # 37

Which of the following describes a tender process run under a framework agreement where the tender only includes price and limited aspects of quality?

A.

Leasing agreement

B.

Mini-competition

C.

Simple one-off purchase

D.

Complex one-off purchase

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Question # 38

Continuous improvement – making small changes in operations and activities in a never-ending way – is called in Japanese:

A.

Zazen

B.

Paisan

C.

Chozen

D.

Kaizen

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Question # 39

Fear of the unknown, peer pressure, organisational politics are examples of reasons why people might:

A.

Invest in a corporation

B.

Resist change

C.

Resist promotion

D.

Take up procurement as a career

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Question # 40

Thinking of the cultural web, which of the following refers to events or routines which take place, and really matter to the people involved?

A.

Rituals

B.

Stories

C.

Control systems

D.

Symbols

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Question # 41

'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 # 42

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 # 43

In what way might a contract clause be used to stop the supplier from making unwarranted price increases during the term of the contract?

A.

The buyer inserts a price adjustment clause in the contract

B.

The buyer deletes any contract clauses that may refer to stage payments

C.

The buyer inserts a contract clause that stipulates the invoice payment dates

D.

The buyer deletes any contract clauses that may refer to price increases

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Question # 44

Responsibilities within a procurement function can be split into strategic, tactical or operational. Which of the following would usually be seen as operational? Choose two.

A.

Preparing purchase orders

B.

Establishing long-term partnership relations with key suppliers

C.

Expediting

D.

Preparing specifications

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Question # 45

A team should be a xxxx unit, rather than a collection of individuals’. Select the three words which fit best.

A.

Combative

B.

Co-operative

C.

Cohesive

D.

Collaborative

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