Question 1

Which remedial actions may be undertaken by a purchasing organisation following a supplier audit? (Select TWO)

Options :

A : Running supplier development programmes

B : Employing the supplier’s staff for job training

C : Daily brainstorming meetings with the supplier

D : Violating the terms of the supplier contract

E : Defining corrective actions for the supplier

Answer: A,E

Question 2

Which level will be impacted if the buying organization considers ethical issues for their sourcing requirements?

Options :

A : Purchase order, Requisition and Contract

B : Strategy, executives and production

C : Macro, corporate and individual

D : Profit, Cost and Reputation

Answer: C

Question 3

Which of the following are examples of credit rating agencies? Select TWO that apply:

Options :

A : Standard Chartered PLC

B : Barclays PLC

C : Moody-s Investors Service

D : The Goldman Sachs Group, Inc.

E : Standard & Poor-s Financial Services LLC

Answer: A,C

Question 4

Which of the following is the mechanism which is used by governments when buying non-indigenous capital equipment, whereby the foreign supplier of the equipment agrees to deliver economic benefit to the buying country as a consideration for receiving the business?

Options :

A : Offcut

B : Offset

C : Offhand

D : Off-air

Answer: B

Question 5

What are the common factors that are used to evaluate quotation? Select TWO that apply

Options :

A : Liquidated damages

B : Payment terms

C : Indemnity

D : Compliance with technical specifications

E : Tenders

Answer: B

Free L4M4 Mock Exam – Practice Online Confidently

Buying Options: