Question 1

At what stage of the tendering process would you make a recommendation and seek approval from an authorised person before awarding the contract?

Options :

A : Award

B : Evaluate

C : Prepare

D : Process

Answer: A

Question 2

What back‐up plan could a manufacturer have in case a supplier is unable to obtain raw materials? Select all that apply

Options :

A : Contract other suppliers to assist should problems arise

B : Do nothing

C : Hold extra stock

D : None of the above

Answer: A,C

Question 3

Lower price does not always equate to lower cost, e.g. could be lower quality, which could result in higher costs further down the line.

Options :

A : TRUE

B : FALSE

Answer: A

Question 4

Budget variances can be temporary or permanent

Options :

A : TRUE

B : FALSE

Answer: A

Question 5

There are three sectors that all business activity fits into, which sector is concerned with extracts raw materials from the Earth? (e.g. mining coal, drilling oil, extracting metal, farming crops and fishing)

Options :

A : Primary sector

B : Quaternary sector

C : Secondary sector

D : Tertiary sector

Answer: A