Question 1

Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

Options :

A : To improve supply chain transparency

B : To condemn whole liabilities to subcontractors

C : To reduce the main contract complexity

D : To keep main contractor liable

E : To induce the conflicts between the main contractor and subcontractors

Answer: A,D

Question 2

A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification. Which of the following is most likely to be incorporated into that specification?

Options :

A : National standards

B : International standards

C : Company standards

D : Brands

Answer: B

Question 3

Which of the following is the term that describes an item bought for a single and non-recurring use or purpose?

Options :

A : Stock purchase

B : Call-off purchase

C : Ad-hoc purchase

D : Operational purchase

Answer: C

Question 4

Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

Options :

A : Quick implementation

B : Short turnaround times

C : Reducing risks of bribery and corruption

D : Driving forward planning culture

E : Lower administration costs

Answer: C,D

Question 5

You are to do the KPIs and targets for international supplier and the following was done
1. Delivery in an hour
2. Return orders in an hour
Is that a good thing or not?

Options :

A : Yes, the higher the targets are, the better the outcomes will be

B : No, because the KPIs are not a realistic and justified

C : Yes, because these targets will propel the suppliers to continuous improvement

D : No, the local suppliers are always the best choice

Answer: B

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