Winter Special Flat 65% Limited Time Discount offer - Ends in 0d 00h 00m 00s - Coupon code: suredis

CIPS L3M2 Ethical Procurement and Supply Exam Practice Test

Demo: 27 questions
Total 90 questions

Ethical Procurement and Supply Questions and Answers

Question 1

‘The usefulness of lifetime costing is for decision-making about whether to acquire an asset with an expected:

Options:

A.

Short life

B.

Long life

C.

After life

D.

Shelf life

Question 2

The Pareto Principle, broadly speaking, is also known as (choose two):

Options:

A.

ABC Analysis

B.

The Rule of Three

C.

The 80-20 Rule

D.

Value Analysis

Question 3

Which one of the following is least likely to be an effective measure of internal customer service?

Options:

A.

Supply Management annual awards

B.

Satisfaction surveys of users within the organisation

C.

Average total lead time

D.

Time from requisitioning to purchase order despatch

Question 4

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

Options:

A.

User’s view of lead time

B.

Seller’s lead time

C.

Maker’s lead time

D.

True lead time

E.

Procurement lead time

Question 5

The axes on the Kraljic matrix are (select two):

Options:

A.

Cost / profit impact

B.

Supplier perception of the buyer

C.

Number of suppliers

D.

Risk to security of supply

Question 6

Imagine that the Chief Executive of a UK bank attempted to learn the name of a whistleblower within the bank - the whistleblower had earlier reported wrongdoing within the bank to the state banking authorities anonymously. Trying to find the name of the whistleblower was a breach of the organisation’s internal protocol which guaranteed anonymity to whistleblowers. Imagine the regula-tory authorities in both the UK and the US took action as a result. What is the most likely action which would be taken by the authorities?

Options:

A.

The bank was fined a substantial sum

B.

No further action - nothing happened

C.

The bank was closed down

D.

The Chief Executive was imprisoned

Question 7

Decisions which do not represent the best overall outcome for the organisation could be called:

Options:

A.

Suboptical

B.

Subtropical

C.

Subliminal

D.

Suboptimal

Question 8

‘A high degree of skill or expertise’

Options:

A.

Proficiency

B.

Efficiency

C.

Deficiency

D.

Effectiveness

Question 9

‘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 10

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

Options:

A.

Delivery

B.

Profit

C.

Quality

D.

Customer

Question 11

The Profex textbook for this subject, states that ‘specifications are said to be ‘the heart of the con-tract’. The book then goes on to state that goods supplied must be ‘fit for…’

Options:

A.

A King

B.

Usage

C.

The requirement

D.

Purpose

Question 12

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 13

We can talk about the ‘make, do or XXXX decision’. XXXX represents:

Options:

A.

Buy

B.

Procure

C.

Lease

D.

Build

Question 14

Which of the following are likely to encourage sound ethical practices within a procurement department?

Options:

A.

Annual audits

B.

After-hours socialising to develop better relationships with suppliers

C.

Generous levels of workplace training

D.

Encouraging membership of CIPS for all staff

E.

Modest salaries

Question 15

A single purchase agreement created to cover multiple repeat orders for supplies from a single source, is called a:

Options:

A.

Call-off contract

B.

Frequency distribution

C.

Single source tender

D.

Automatic replenishment

Question 16

‘EBI’ stands for:

Options:

A.

Earnest business interest

B.

Early buyer involvement

C.

Ethical business interest

D.

Eager buyer involvement

Question 17

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 18

‘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 19

The crime of obtaining money through threats or force, is called:

Options:

A.

Fraud

B.

Bribery

C.

Embezzlement

D.

Extortion

Question 20

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 21

The letters ‘EOQ’ refer to:

Options:

A.

A person’s level of ‘emotional intelligence’

B.

The notion of there being a best time to order

C.

The idea of an optimum quantity to order

D.

The idea of an optimum quality to order

Question 22

‘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 23

KPIs should be:

Options:

A.

START

B.

SMART

C.

SWART

D.

SHARP

Question 24

Individuals, units, teams, groups or organisations that have an influence over procurement, or which are affected by procurement operations, can be called:

Options:

A.

Customers

B.

Stakeholders

C.

Shareholders

D.

Wholesalers

Question 25

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 26

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

Options:

A.

Revenue

B.

Time

C.

Price

D.

Place

Question 27

The usefulness of lifetime costing is for decision-making about whether to acquire an asset with an expected:

Options:

A.

After life

B.

Shelf life

C.

Short life

D.

Long life

Demo: 27 questions
Total 90 questions