QUESTION 56
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 57
Which award criteria can be applied when sourcing requirements from external suppliers?

QUESTION 58
Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.

QUESTION 59
For what type of purchase would you use a Futures Exchange?

QUESTION 60
Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

QUESTION 61
The balance sheet (Statement of Financial Position) is one of the financial statements used in providing important information required in determining the supplier’s financial stability. The balance sheet contains information on such items as…

QUESTION 62
A buyer for a large manufacturing organisation is assessing a sole supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole supplier proposal?

QUESTION 63
Weighted points systems can be applied to evaluate and compare potential suppliers. For which of the following factors would it be appropriate to use this method?
* Financial stability
* Supplier reliability
* Market demand
* Negotiation styles

QUESTION 64
Which is an example of a criterion for supplier selection during a tender for a hospital build to demonstrate the people element of the ‘triple bottom line’?

QUESTION 65
Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.

QUESTION 66
A buyer evaluates a supplier’s ethical and social practices during the pre-qualification stage of the supplier onboarding process. Which of the following variables would trigger further follow-up activities?

QUESTION 67
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?

QUESTION 68
Which of the following would you use to work out a company’s gearing ratio? Select TWO.
0current liabilities

QUESTION 69
Which of the following is a UK legislation concerning product safety?

QUESTION 70
In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?

QUESTION 71
Which of the following is a regulatory body which protects the rights of workers?

QUESTION 72
Which of the following characteristics are likely to be required within sourcing processes undertaken in the public sector?
* An emphasis on long-term supplier relationships where possible
* Maintaining service levels within value and cost parameters
* All dealings between buyers and suppliers are kept confidential
* A competitive tendering process is usually encouraged

QUESTION 73
A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

QUESTION 74
A procurement manager has decided to use a local newspaper to source quotes from external suppliers. Why is it important to advertise tenders? Select TWO that apply.

QUESTION 75
The procurement manager has received the following data from the supplier’s accounts to facilitate the calculation of the supplier’s current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?

QUESTION 76
If a company is described as ‘liquid’ what does this mean?

QUESTION 77
In the Public Sector, what is the evaluation criteria most often used when evaluating bids fromsuppliers?

QUESTION 78
Bribery is considered an unethical business practice. What constitutes a bribe?

QUESTION 79
Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable. Which of the following should Dylan look for in terms of quality management when appraising the suppliers?