Question 1

According to OJEU approaches, when will a public organisation have to adopt restricted process?

Options :

A : When procurement function assumes that number of bids will be limited

B : When procurement function doesn't know how exactly the specification should be

C : When procurement function expects there to be large potential supplier base

D : When procurement function has loose selection requirements that are imposed to bidders

Answer: C

Question 2

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 3

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?

Options :

A : it allows transparency

B : it is time-consuming to create

C : it is easy to manipulate

D : it is hard to be objective

Answer: A

Question 4

In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?

Options :

A : When the value of the procurement is high and special tooling is a major factor

B : When the requirement is needed urgently and price is not the most important factor

C : When the suppliers have technical expertise, and the value of the procurement is relatively high

D : When the specification is likely to be continuously reviewed as the contract progresses

Answer: C

Question 5

The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

Options :

A : No, they can reduce risks but will not eliminate them

B : No, they will only provide assurance about the quality of goods

C : Yes, they are popular because all risks are avoided

D : Yes, they eliminate all the risks of buying from an overseas supplier

Answer: A

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