QUESTION 50
GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?

QUESTION 51
Which of the following should be considered when calculating ratios relating to a supplier’s liquidity?

QUESTION 52
A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?
* Fraudulent activity
* Bribery
* Modern slavery
* Breach of confidentiality

QUESTION 53
What are the risks of outsourcing?
* Loss of control of project
* Loss of assets
* Loss of future business opportunities
* Loss of private information

QUESTION 54
The Freedom of Information Act is a piece of UK legislation which allows members of the public to request information on issues such as public sector sourcing. When a request is made, it is compulsory for the public sector to provide this information to the public. Is this statement true?

QUESTION 55
Sourcing can be tactical or strategic. Which of the following might be classified withinstrategic sourcing?
* Stakeholder meetings to review product design modifications
* Open tendering to provide new office chairs
* Evaluating quotations for the latest accounting software
* Regular stationery orders for the managing director’s office

QUESTION 56
The procurement manager has supplier data: Current Assets = $300 (Stock $200, Debtors $60, Cash $40).
Short-Term Liabilities = $150 (Bank overdraft). Which calculation gives the current ratio?

QUESTION 57
Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector. Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?

QUESTION 58
Greg is doing some research on a potential supplier and is concerned that the supplier’s funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg’s business. What should Greg do about his concerns?

QUESTION 59
Why is it specifically important for public sector organisations to use a competitive tendering process?

QUESTION 60
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of ‘non-preferential origin’. What implications would this mean for Henry?

QUESTION 61
Which of the following are procurement procedures permissible under EU Public Procurement rules? Select TWO that apply.

QUESTION 62
Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits. Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO

QUESTION 63
Philip is a procurement manager at XYZ Company which imports raw materials from abroad. Sup-pliers provide quotes to Philip in their local currency. Is this the best way to reduce the risk to XYZ Company of currency fluctuations?

QUESTION 64
Bribery is considered an unethical business practice. What constitutes a bribe?

QUESTION 65
Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?

QUESTION 66
Which award criteria can be applied when sourcing requirements from external suppliers?

QUESTION 67
A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer’s organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance. Which Incoterm has been agreed?

QUESTION 68
Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?

QUESTION 69
What type of ratio is used to measure a company’s ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

QUESTION 70
Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to. Which of the following is a benefit of incorporating standards as a requirement within a specification?

QUESTION 71
Which of the following are key areas of regulations that govern organisations in responsible procurement and supply?

QUESTION 72
Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?

QUESTION 73
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?