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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?
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?
A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market. Which of the following is a benefit of using a full competitive tendering process for this new contract?
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?
Compared with single sourcing, what is a key advantage to dual or multiple sourcing? Select TWO
Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?
Which of the following would you expect to find in an Invitation to Tender? Select THREE
In which instance would multiple sourcing be the most applicable approach?
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass. What relationship style would be best suited?
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
What is the best way to prevent potential issues of conflicts of interest?
Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.
Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?
Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?
Amnesty International, Oxfam and CIPS are examples of what type of organisation?
What are the risks of outsourcing?
Loss of control of a project
Loss of assets
Loss of future business opportunities
Loss of private information
Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these. Which of the following items would be C category items?
An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender. Which of the following should be considered?
Phishing is a type of fraud that is commonly associated with which industry?
What is a major benefit to using Incoterms when sourcing goods internationally?
Incoterms are divided into four main groups to follow the movement of goods covering the exporter’s premises, export and import points, and cost and risk. Which letters represent the four groups of Incoterms?
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?
A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?
Which of the following factors are typically considered when assessing a supplier's financial capacity?
Phishing is a type of fraud that is commonly associated with which industry?
What are some of the benefits of conducting unscheduled supplier audits? Select TWO that apply.
Tendering is a more formal and regimented process than sending out requests for quotations. Which of the following are services that are often put out to tender? Select THREE.
If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?
What mechanism helps buying organisations achieve a best value outcome in a tender exercise?
A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?
Fraudulent activity
Bribery
Modern slavery
Breach of confidentiality
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
Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?
Which of the following would you expect to find in an Invitation to Tender? Select THREE
Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?
Fraudulent activity
Bribery
Modern slavery
Breach of confidentiality
Jack Green is planning to use competitive tendering to source a new component for a new product that the customer research department has been developing for the domestic market. Jack is intending to use an open tender process. Which of the following aspects must Jack consider if an open tender procedure is to be used?
It is important that buyers take an approach that is reasonable and fair when selecting suppliers to work with. Which of the following is a voluntary document which can help procurement professionals treat suppliers respectfully?
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally. Which of the following is described by Incoterms? Select THREE.
Jamilla is looking to find a new supplier who can deliver raw materials of wood and paper to her company Woody Manufacturing Incorporated. The requirement is for regular orders of high volume. She has issued a Request for Quotation. What will this assess the suppliers on?
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asks Questions relating to how they will deliver the service and gives a deadline for bids to be submitted. Which document have the suppliers ben sent?
Which of the following factors are typically considered when assessing a supplier's financial capacity?
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?
Which of the following incoterms relate specifically to transporting items over water?
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?
The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?
As a procurement officer for a large organisation, a supplier approaches you on social media offering to take you out for dinner to discuss a recent open opportunity and mentions a financial reward if you help them win the business. You accept the invite. Was this the right thing to do?
A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market. Which of the following is a benefit of using a full competitive tendering process for this new contract?
TESTED 01 Jul 2025