Question 1

‘The value of a commodity or service measured in terms of the standard monetary unit’ describes:

Options :

A : Cost

B : Value added

C : Price

D : Value for money

Answer: C

Question 2

Which one of the following is a commercial document issued by a seller seeking payment for goods or services?

Options :

A : Delivery note

B : Pre-qualification questionnaire

C : Invoice

D : Supplier quotation

Answer: C

Question 3

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:

Options :

A : Painshare

B : Fair share

C : Gainshare

D : Stocks and shares

Answer: C

Question 4

Which of the following would not normally be seen as part of public sector procurement?

Options :

A : Achieving defined service levels

B : An emphasis on the use of the competitive principle

C : Personal financial rewards from suppliers for buyers in return for awarding contracts

D : Personal bonus payments for procurement staff, linked to savings made

E : Pursuit of equal opportunities policies, internally and externally

Answer: C,D

Question 5

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?

Options :

A : Ethical

B : Political

C : Environmental

D : Economic

Answer: D

Free L3M1 Mock Exam – Practice Online Confidently

Buying Options: