Question 1

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

Options :

A : Effectiveness

B : Economy

C : Efficiency

Answer: B

Question 2

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)?

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

Options :

A : Participating in international procurement conferences and developing staff

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

C : Cost reduction

D : Sourcing new materials for products under development

Answer: C

Question 3

An office manager buys some wallpaper based on samples, only to find the batch of paper delivered is of a slightly different colour than the sample provided. Is this an implied term covered under sale by description?

Options :

A : No, it is sale by sample. The bulk does not correspond with the sample

B : Yes, it is sale by description. The wallpaper is not the correct colour

C : No, it is not of satisfactory quality. The wallpaper is not fit for purpose intended

D : Yes, it is sale by description. The wallpaper does not conform to the description

Answer: A

Question 4

While it is recognised that longer-term contracts have the potential to drive significant benefits for the organisation, a number of situations are more suited to making one-off purchases. Which of the below situations is likely to be more suited to a one-off purchase?

Options :

A : The ordering of equipment for a special project

B : A requirement for the maintenance of buildings

C : The purchase of compatible IT infrastructure equipment

D : The purchase of internal and external audit services

Answer: A

Question 5

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

Options :

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

Answer: B

Confidently Practice Online with Free L3M4 Exam Cram

Buying Options: