Try L3M2 Ethical Procurement and Supply Exam Dumps PDF Free

1. C E R T S GR A DE High Grade and Valuable Preparation Stuff High Grade and Valuable Preparation Stuff CIPS L3M2 Ethical Procurement and Supply Questions And Answers PDF Format: For More Information – Visit link below: https://www.certsgrade.com/ Version = Version = Product Visit us athttps://www.certsgrade.com/pdf/l3m2/

2. Latest Version: 6.0 Question: 1 The price of one currency expressed in terms of another currency is called the: A. "Exchange rate (Correct)" B. "Base rate" C. "Interest rate" D. "Equilibrium rate" Answer: A Explanation: Exchange rate - the rate at which the currencies are exchanged. This rate can vary frequently, sometimes several times per hour, depending on circumstances. The interest rate is the rate charged on loans - the cost of borrowing. The base rate is the basic interest rate used for agreeing loans within an economy. This rate is normally set by the government or the central bank. Loans within that economy will usually be at a higher rate than the base rate, often much higher. The equilibrium rate (more commonly 'equilibrium price') is the rate at which supply and demand meet, not necessarily related to currency. Question: 2 The letters 'NFP' mean... A. "Not-for-profit (Correct)" B. "Not for procurement" C. "Non-funded purchase" D. "Newly focused (on) profit" Answer: A Explanation: The answer is 'not-for-profit', meaning 'third sector' (charities, co-operatives, NGOs, etc). This is not the same as 'public sector'. You should be clear on this terminology. Question: 3 Visit us athttps://www.certsgrade.com/pdf/l3m2/

3. Pressure groups which seek to promote a particular issue, such as human rights, the environment; or raise awareness (eg modern slavery); or lobby for legislative change on a particular issue (eg species protection) are called: A. "Causal pressure groups (Correct)" B. "Blood pressure groups" C. "Sectional pressure groups" D. "Casual pressure groups" Answer: A Explanation: Causal, not casual. They exert pressure about particular causes. 'Sectional' is an invention by me; blood pressure group is a rather weak attempt at humour. Question: 4 Thinking of the STEEPLED factors which may impact long-term on an organisation, under which one heading would the following appear: growth trends, unemployment patterns, incomes, interest rates exchange rates and tax rates? A. "Ethical" B. "Political" C. "Economic (Correct)" D. "Environmental" Answer: C Explanation: The correct answer, covering all of these, is 'economic'. 'Political' could also be considered, but 'economic' covers them all. The other two answers suggested are not really relevant. Question: 5 ‘A - - - - - - - - is a price in which the supplier and buyer agree that the supplier can charge a price based on actual costs incurred, plus a margin for profit’. A. "A whole life cost" B. "A fixed price" C. "A target cost incentive price" D. "A cost-based price (Correct)" Visit us athttps://www.certsgrade.com/pdf/l3m2/

4. Answer: D Explanation: This should be an easy question. The definition describes nicely one possible form of cost-based price. It is important to try to be able to distinguish cost from price. The 'target cost incentive' method of pricing might have been tempting as an answer, since the definition shown mentions cost, but it mentions neither target nor incentive, and can therefore be ruled out. And whole life cost is a different concept altogether. Question: 6 An arrangement between a buyer and a supplier in which they agree to apportion benefits (such a reduced costs, or increased outputs) arising from particularly sound contract performance may be called: A. "Painshare" B. "Fair share" C. "Gainshare (Correct)" D. "Stocks and shares" Answer: C Explanation: There is an expression 'painshare' which is an almost-ironic term referring to the opposite of the situation described in the question - when something has gone wrong, and the additional cost must be shared between the parties. The other two answers are a little bit facetious. The correct answer is 'gainshare' when the parties share benefits, according to a pre-agreed ratio or formula. Question: 7 In Hofstede’s dimensions of differences in national cultures, which one measures the extent to which security, order, control and predictability are preferred to ambiguity, risk and change? A. "Individualism" B. "Long-term orientation" C. "Power-distance" D. "Uncertainty avoidance (Correct)" E. "Masculinity" Answer: D Visit us athttps://www.certsgrade.com/pdf/l3m2/

5. Explanation: The answer is uncertainty avoidance. Even if you have never heard of Hofstede, you can select the correct answer based on the Explanation: given in the question. Although the word 'culture' does not appear in the syllabus, much of Learning Outcome 3.0 can be seen as referring to culture. Some understanding of culture, both organisational culture and national culture is essential to human interactions in the procurement and supply environment. Check out Geert Hofstede's website to learn more about his work. Question: 8 A 'genuine pre-estimate of loss' describes: A. "A quantum meruit award" B. "Unliquidated damages" C. "A penalty clause" D. "Liquidated damages (Correct)" Answer: D Explanation: This a definition of liquidated damages. Calculated in advance of the event occurring ie pre-contract and thus agreed by the parties in advance. Meaningful advance calculations (estimates) must be available to enforce legally. The term and the spirit of 'penalty clause' is discouraged in English law - damages should be aimed at returning the damaged party back into the position they would have been in, had a wrong not been done. Unliquidated damages can only be awarded by a court after the event, and should not be relied upon. An example of a quantum meruit award can be found in the British Steel v Cleveland Bridge (1984) case - a rare occurrence, and again something which must not be relied upon. Question: 9 One textbook (Profex Publishing) for this course under the heading 'Right price for the supplier' refers to: ‘A price which allows the seller to win business, in competition with other suppliers (according to how badly it needs the business, and the prices being charged by its competitors)’ Which of the following mechanisms is being referred to here? A. "A tender exercise (Correct)" B. "Litigation" C. "Cost analysis" D. "Face-to-face negotiation" Answer: A Visit us athttps://www.certsgrade.com/pdf/l3m2/

6. Explanation: A competitive exercise is being referred to, in which the seller is under competitive pressure to try to win the business, yet not charge so much they don't win the business. This is commonly known as a 'tender', or 'tender exercise'; also 'competitive bidding' etc. It is this desire to win profitable business, restricted by an upper limit on price because of competitor behaviour, that forces suppliers to be competitive with their prices. This tension between the bidder's desire for profit; and the need to be realistic with price, explains why the competitive approach is so highly valued in procurement. Question: 10 The 'five forces' model is also known as an 'Industry Structure Analysis'. True or false? A. "False" B. "True (Correct)" Answer: Explanation: This is true. In my view, 'Industry Structure Analysis' is a better term, not only because that is what Michael Porter originally called it, but because it better describes what the model is about. For example, it reminds us that the model is not about a single firm, but it is about an entire industry, and the structure around that industry. Visit us athttps://www.certsgrade.com/pdf/l3m2/

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