CIPS L3M1 Procurement and Supply Environments Exam Practice Test

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Total 90 questions
Question 1

Which one of the following is a document describing the requirement of a buying organisation, and may be used in seeking quotations or in a tender process? It may take the form of a written descrip-tion, drawing, model, chemical formula, etc.



Answer : A

Specification is the answer. The second sentence in the rubric makes it clear that this is the correct answer.


Question 2

In one format for describing socio-economic groupings, skilled, semi-skilled and unskilled working class people would be classified as:



Answer : B

This is a broad group of people deriving income from employment, including some skilled people through to unskilled.

A, B and C1 would be those people often referred to as upper middle class or upper class; whereas E would describe a broad group of the poor, the unemployed, etc.

These are rough generalisations regarding people's likelihood of income, taste, lifestyle, etc. To take an extreme example, there is probably not much point in trying to market Dom Perignon (an expen-sive brand of champagne) to the E group. But the E group might welcome promotion of a low-cost brand of tobacco or cigarettes.


Question 3

Measurement of an organisation's carbon footprint uses which gas as a standard measure?



Answer : B

CO2 is the correct answer - carbon dioxide.

CO is carbon monoxide; H20 is water (or steam or ice) and CO3 is carbon trioxide.


Question 4

Measurement of an organisation's carbon footprint uses which gas as a standard measure?



Answer : C

A well-known measure of carbon footprint.

Procurement professionals are encouraged to incorporate environmentally-friendly thinking into their workplace activities and decision-making.


Question 5

Which of the following are core stakeholders of a private sector organisation? Select all that apply.



Answer : B, D

Both customers and shareholders are core stakeholders of a private sector organisation, although this fact appears to be somewhat diluted in the minds of some modern-day academics and commenta-tors. The shareholders are the owners of the business - it is for them that everyone is working and their objective is invariably profit. The profit is derived from religiously focusing on another core stakeholder group - the customers. If either of these two stakeholder groups is ignored, it is unlikely that happy times lie ahead.


Question 6

The y-axis of the Product Life Cycle could properly show the following (select all that apply):



Answer : A, B, C

The vertical axis (the y-axis) of the product life cycle diagram could correctly show all three, and might commonly show losses and / or investment in the early stage(s).


Question 7

The idea / practice that some users / internal customers will spend organisational funds without in-volving procurement professionals when required to do so by organisational rules, is called:



Answer : D

One of the best ways to combat maverick buying is for procurement to be seen to be doing a good job, reducing the justification in colleagues' minds for going outside the system.

The other terms shown in the answers are simply made up to create the question.

This is your final question in this practice exam - good luck in the real exam!


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Total 90 questions