Question 1

Which of these statements is a correct description of a contract?

Options :

A : A promise made by a supplier to supply goods or services

B : An agreement enforceable by law made between two or more people

C : An offer and acceptance has taken place

D : A promise made by the buyer to place an order

Answer: B

Question 2

Which of the following is a qualitative key performance indicator?

Options :

A : To increase on-time in-full deliveries by 40%

B : To reduce costs by 10% over a year

C : To improve customer relationships by 20%

D : To reduce the defect rate to below 25%

Answer: C

Question 3

An office manager buys some wallpaper based on samples, only to find the batch of paper delivered is of a slightly different colour than the sample provided. Is this an implied term covered under sale by description?

Options :

A : No, it is sale by sample. The bulk does not correspond with the sample

B : Yes, it is sale by description. The wallpaper is not the correct colour

C : No, it is not of satisfactory quality. The wallpaper is not fit for purpose intended

D : Yes, it is sale by description. The wallpaper does not conform to the description

Answer: A

Question 4

Which one of the following is very commonly seen as being the primary role of the procurement function (especially by those outside the procurement function)?

And yet on many occasions, it should not be the primary focus.

Options :

A : Participating in international procurement conferences and developing staff

B : Developing deep relationships with long-term suppliers of key goods and services

C : Cost reduction

D : Sourcing new materials for products under development

Answer: C

Question 5

Management studies and experiments over several decades have found that increased participation of workers in decision-making about changes tends to lead to (choose one):

Options :

A : Industrial stoppages / strikes / sabotage

B : Overcoming of resistance to change / increased co-operation and productivity

C : Longer holidays / higher pay / more sunshine

D : Never-ending debates / time-wasting / indecision

Answer: B

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