Question 1

When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?

Options :

A : after delivery

B : in advance of delivery

C : when they receive the PO

D : before the order is placed

Answer: A

Question 2

Which of the following are most likely to be possible risks of selecting financially unstable suppliers? Select TWO that apply:

Options :

A : Delay or failure to supply

B : Incompatibility with supplier-s systems

C : Potential exposure to supplier-s outdated technology

D : Negative contribution to the environment

Answer: A,C

Question 3

When reviewing the proposals from different suppliers, the procurement professional should spend the least time and resources on which of these items?

Options :

A : Strategic items

B : Routine items

C : Leverage items

D : Bottleneck items

Answer: B

Question 4

What is the purpose of Transfer of Undertakings (Protection of Employment) regulation?

Options :

A : To ensure the continuity of supply for the buying organisation

B : To protect the right of workers to organise into, or leave, a union without suffering discrimination or detriment

C : To create minimum wage across companies in Europe

D : To ensure that any individuals working to provide a service keep their jobs when supplier is change

Answer: D

Question 5

Murray has to evaluate a prospective supplier’s financial performance for a long-term project. He notices that the supplier’s long-term debt is twice as much as its equity. What is the most probable inference about the supplier’s financial condition?

Options :

A : The supplier is less susceptible to downturns in the economy and the business cycle

B : The supplier is exposed to risks in long-term

C : David-s company may extend the payment period with this supplier

D : The supplier has capabilities to implement the project

Answer: B

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