CIPS L3M3 Exam Practice Test Instant Access

Question 1

Intangibility means:

AHandle with care -- easily broken

BAbility to touch something

CHaving a short shelf life

DInability to touch something

Answer : D

Inability to touch something.

Services are intangible, which may present challenges when specifying / buying.

Question 2

After a framework arrangement is in place, a further XXXX competition can be held. Which word replaces XXXX?

AMini

BMaxi

CMicra

DMicro

Answer : A

A mini-competition may be held to select a supplier, depending on the wording in the framework arrangement documentation and circumstances at the time.

Question 3

Which one of the following is from the STEEPLE framework?

ASocio-economic

BSocio-pathic

CSocio-cultural

DSocio-logical

ESocio-technical

Answer : C

Socio-cultural. The only 'S' in the framework.

Question 4

Which of the following risks, which could severely impact on a business, is least likely to occur, in your judgment?

ALiquidation of a supplier's business because of financial weakness

BSinking of cargo ship in a storm in the English Channel

CAirport workers' strike in country of export

DGlobal virus pandemic affecting all countries, and resulting in millions of deaths

Answer : D

Supplier liquidations are to be expected; workers' strikes likewise.

Cargo ships do sink, and your course creator has had cargo in at least two ships which have sunk on the high seas, one of them in The English Channel.

A global pandemic (Covid-19) was highly unlikely (2019), but arrived with devastating conse-quences for commerce and people. Low likelihood, huge impact.

Just because it seems unlikely doesn't mean it's not going to happen.

If you're seriously interested on the effect of apparently chance happenings in our lives, read Nassim Nicholas Taleb - you'll either love him or hate him.

Question 5

Which of the following are external factors in supplier decision-making? Choose two.

AThe selling firm's financial position

BMarket conditions, determining demand and supply

CCustomer perceptions of value

DHow badly the seller needs the business

Answer : B, C

Market conditions, determining demand and supply, and customer perceptions of value are external factors. One could argue that customer perceptions of value can be altered by the selling company, but in the short-term this is clearly external.

Question 6

When both buyer and seller share cost information with each other (in both directions), in order to collaborate in cost reduction activities.

AOpen book costing

BCo-destiny

CCost analysis

DCost transparency

Answer : D

Cost transparency - this requires a high trust level, as both parties open up and share information on the costs of their operations.

Open book costing is a one-way share - the seller allows the buyer to look at their actual costs.

Question 7

In which year did the United Nations issue the Universal Declaration of Human Rights?

A2001

B1941

C1948

D1919

Answer : C

1948 is the correct answer: the UN issued the UDHR in 1948, three years after the end of World War 2.

More than 70 years later, we know that in many supply chains, there are individuals' human rights being breached, for example, in modern slavery.

CIPS is strongly opposed to modern slavery, and we should do our utmost to eradicate such prac-tices within our supply chains.

CIPS L3M3 Contract Administration Exam Practice Test