Free Procurement and Supply Environments Exam L3M1 Exam Practice Test

Continuously gathering and analysing intelligence from sources such as professional, industry and trade journals, websites, conferences and exhibitions, published reports and online databases is called:

• Industrial espionage
• Purchasing research
• Data analysis
• Environmental scanning

As well as a Goods Received Note (GRN), three-way matching to authorise a payment to a supplier should involve two other documents. Which two?

• Service Level Agreement
• Invoice
• Purchase Order
• Bill of Materials

'Trade within major trading blocs tends to expand, whereas this is not necessarily the case regarding trade between major trading blocs'. True or false?

• True
• False

Which one of the following is a document issued by a buyer to conduct an initial assessment of the suitability of a potential supplier for possible future use, either for a specific requirement or to add to a list of approved suppliers?

• Pre-qualification QUESTION NO :naire
• Invitation to tender
• Supplier quotation
• Request for quotation

Think carefully.There is low consumer demand; production capacity is unused; prices are stable or are falling; busi- ness profits are low; unemployment is high; and business confidence is low. Is this:

• Recovery
• Recession
• Boom
• Depression

In which one of the following sectors would you least expect to find seasonal unemployment:

• Policing
• Construction
• Agriculture
• Tourism

Why is procurement governance important? Select all that apply.

• It's not important
• Procurement has sway over large sums of organisational funds
• There may be potential opportunities to commit fraud
• Procurement’s decisions benefit some suppliers over others

Which of the following constitute non-tariff barriers to trade?

• Increased import duties
• Complex customs procedures and paperwork for any goods crossing borders
• Reduced import duties
• Government subsidies to domestic producers

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

• A,
• C1
• C2,
• D

Sources of finance for a public sector entity are primarily (select one):

• Sales revenues
• Taxpayers
• Long-term bank loans
• Delaying payments to suppliers