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Exam Code: L4M8

Exam Questions: 105

Procurement and Supply in Practice

Updated: 25 Nov, 2025

Question 1

What Incoterm applies here?

The goods are considered ‘delivered’ at the point of release from the supplier’s premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance – this must be arranged by the buyer. The risk is on the buyer from this point.

a) EXW – Ex Works

b) FCA – Free Career

c) CPT – Carriage Paid To

d) CIP – Carriage and Insurance Paid to

Options :

A : EXW – Ex Works

B : FCA – Free Career

C : CPT – Carriage Paid To

D : CIP – Carriage and Insurance Paid to

Answer: A

Question 2

Which Incoterm applies here? The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination, covering the cost of both the transport and the insurance to cover this. Again, the supplier bears all risks until the goods are delivered to the buyer at their named place.

Options :

A : FOB – Free On Board

B : DAP – Cost and Freight

C : CIF – Cost Insurance and Freight

D : FAS – Free Alongside Ship

Answer: C

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