Question 1

Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

Options :

A : To improve supply chain transparency

B : To condemn whole liabilities to subcontractors

C : To reduce the main contract complexity

D : To keep main contractor liable

E : To induce the conflicts between the main contractor and subcontractors

Answer: A,D

Question 2

A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification. Which of the following is most likely to be incorporated into that specification?

Options :

A : National standards

B : International standards

C : Company standards

D : Brands

Answer: B

Question 3

According to mailbox rule in some common law countries, at which point the offeree's acceptance will be effective?

Options :

A : When the letter of acceptance has been written.

B : When the letter of acceptance is received by the offeror.

C : When the letter of acceptance has been correctly addressed, its postage paid, and posted.

D : When the letter of acceptance is opened and its contents read by the offeree.

Answer: C

Question 4

Which of the following is the term that describes an item bought for a single and non-recurring use or purpose?

Options :

A : Stock purchase

B : Call-off purchase

C : Ad-hoc purchase

D : Operational purchase

Answer: C

Question 5

Which of the following are true statements about RFQ process? Select TWO that apply.

Options :

A : RFQ process creates heavier administrative burdens than tendering process

B : Price is often the only variable in the RFQ and quotations

C : Buying organisation should only send RFQ to pre-qualified suppliers

D : RFQ process is not suitable for low value purchase

E : RFQ process requires the suppliers to submit their technical proposals

Answer: B,C