Question 1

What will be the result of retaliation between business rivals in an industry?

Options :

A : High exit barrier

B :

More new entrants

C : Greater bargaining power of suppliers

D : Lower profit

Answer: D

Question 2

A charity is reviewing their spend and budget after an operation in flooded areas. They realise that the operators save money against the budgeting plan. This saving is known as...?

Options :

A : Negative variance

B : Positive variance

C : Positive budget

D : Negative budget

Answer: A

Question 3

What kind of change may require a modified re-buy?

1. Change of order time

2. Change of specification

3. Change of terms and conditions

4. Switch from email orders to ERP orders

Options :

A : 2 and 3 only

B : 3 and 4 only

C : 1 and 3 only

D : 2 and 4 only

E : 1 and 2 only

F : 1 and 4 only

Answer: A

Question 4

A company is planning the procurement of an IT system and wants to agree a through-life contract with the supplier to ensure ongoing system support. The first step in producing that specification should be to:

Options :

A : Prepare tendering documents

B : Define the user requirements

C : Build a design

D : Identify the IT system supplier

Answer: B

Question 5

Which of the following specific markets engage in creation, liquidation and change of ownership of stock?

Options :

A : Financial

B : Construction

C : Retail

D : Manufacturing

E : Agriculture

Answer: A