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CIPS L3M2 Ethical Procurement and Supply Exam Practice Test

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Total 90 questions

Ethical Procurement and Supply Questions and Answers

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Question 1

A margin within which a specification can vary slightly – the outer limits of what is acceptable to the buyer – can be described as:

Options:

A.

Impedances

B.

Balances

C.

Tolerances

D.

Ordinances

Question 2

The axes on the Mendelow stakeholder management matrix are:

Options:

A.

Power and interest

B.

Power and influence

C.

Risk and interest

D.

Risk and reward

Question 3

You have invited quotations for some building maintenance work to be done at your organisational headquarters. Your sister has recently taken up a position as Head of Marketing at one of the firms which has quoted for the work. What should you do?

Options:

A.

Disbar the firm your sister works in, from the exercise, as the connection could create undesirable rumours about malpractice.

B.

Do nothing – you know you are honest and that is what matters.

C.

Ask your sister to take you out for dinner on her expense account to discuss the matter.

D.

Advise your line manager in writing, and ask to be excused from participation in this particular procurement exercise.

Question 4

Which of the following is not a concept related to quality management?

Options:

A.

SPC

B.

FMEA

C.

TQM

D.

SPQR

Question 5

‘Efficiency is measured in terms of a quantity of …’

Options:

A.

Output per unit of input resource

B.

Resource per unit of input

C.

Input per unit of output resource

D.

Throughput

Question 6

‘The act of drawing the attention of someone in authority, to an alleged instance of unethical con-duct’, is called:

Options:

A.

Whistleblowing

B.

Wetting one's whistle

C.

Whistle stopping

D.

Whistling in the wind

Question 7

In developed economies such as the European Union and North America, there is no forced labour (modern slavery) in supply chains. True or false?

Options:

A.

True – these sophisticated economies have effective protections against such things

B.

False – there are unfortunately many thousands of modern slaves in these economies

C.

Don't know

Question 8

‘Reputation gained through proficiency, ability or achievement’ (as used in the CIPS Code of Con-duct)

Options:

A.

Statute

B.

Status

C.

Stature

D.

Statue

Question 9

Thinking of Carter’s 10 C’s, the ‘c’ for Commitment refers to:

Options:

A.

Delivery

B.

Profit

C.

Quality

D.

Customer

Question 10

An internet-based auction between competing sellers or suppliers in real time, is called a:

Options:

A.

Competitive e-tender

B.

Dutch e-auction

C.

Reverse e-auction

D.

Forward e-auction

Question 11

Finding new potential suppliers using the internet might be known as:

Options:

A.

e-sourcing

B.

e-scouring

C.

e-souring

D.

e-auction

Question 12

A term used to describe preparatory activities undertaken after a contractor has been appointed, but before they have commenced work. Often used in projects, construction or management consultan-cy

Options:

A.

work.

B.

Globalisation

C.

Synchronisation

D.

Mobilisation

E.

Improvisation

Question 13

The time between recognition / origin of the need; through to usage or consumption is described as:

Options:

A.

Procurement lead time

B.

Seller’s lead time

C.

Maker’s lead time

D.

True / total lead time

E.

User's lead time

Question 14

Which ISO standard describes quality as ‘the degree to which a set of inherent characteristics fulfils requirements’?

Options:

A.

ISO 9000

B.

ISO 19000

C.

ISO 14001

D.

ISO 5750

Question 15

Use of competition is most obviously going to influence which of the following ‘rights’?

Options:

A.

Revenue

B.

Time

C.

Price

D.

Place

Question 16

Where the buyer’s and seller’s conditions of contract clash, this is commonly known as ‘the battle of the…’

Options:

A.

Bulge

B.

Terms

C.

Firms

D.

Forms

E.

Papers

F.

Titans

Question 17

Thinking in accounting terms, when the cost does not match the budget figure, there could be said to be a:

Options:

A.

Discrepancy

B.

Variety

C.

Variance

D.

Error

Question 18

‘Something which carries on over time, going round in repetitive circles’, is called a:

Options:

A.

Scheme

B.

Cycle

C.

Circuit

D.

Process map

Question 19

OTIF stands for:

Options:

A.

Order transmitted and in the supplier's factory

B.

Order transmitted in full

C.

On time and in our facility

D.

On time and in full

Question 20

Regarding quality management, how many defects?

Options:

A.

Zero

B.

One

C.

Three

D.

Two

Question 21

‘It is important to remember that XXX customer service has a knock-on effect on YYY customer service’. What are the missing two words?

Options:

A.

Competitor, market

B.

Internal, external

C.

Legal, financial

D.

Procurement, marketing

Question 22

Disclose, distance, delegate, …?

Options:

A.

Dislocate

B.

Disassociate

C.

Discriminate

D.

Discombobulate

Question 23

The objective of value engineering has been described as:

Options:

A.

Doing more with the same

B.

Doing more with less

C.

Doing more with more

D.

Doing more with your time

Question 24

Which two of the following would be unlikely to increase value for money for an organisation?

Options:

A.

Attending social events at supplier's expense

B.

Use of value analysis or value engineering

C.

Standardisation of components

D.

Accepting a late bid in a tender process

Question 25

In the period in question, the budget for staff overtime and bonuses is zero.

The actual expenditure is 2,900.

Is this variance:

Options:

A.

Averse?

B.

Favourable?

C.

Adverse?

D.

Zero?

Question 26

The main difference between value engineering and XXXXX XXXXX is that whereas value engineering is applied to new product design at the pre-manufacturing stage, XXXXX XXXXX is applied to established products that are already being manufactured and sold in the market.

Options:

A.

Product analysis

B.

Cost analysis

C.

Value analysis

D.

Price analysis

Question 27

Where performance of the contract may be impossible because of external unforeseen factors, this may be called:

Options:

A.

Force majeure

B.

Force supérieure

C.

Force ouvrière

D.

Mutatis mutandis

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Total 90 questions