Question 1

When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?

Options :

A : after delivery

B : in advance of delivery

C : when they receive the PO

D : before the order is placed

Answer: A

Question 2

What are some signs that a supplier has insufficient capacity? Select TWO that apply:

Options :

A : Decrease in the unit price

B : Decrease in percentage of faulty product

C : The financial position is strong

D : Decrease in percentage of in-full delivery

E : Increase in the late delivery time

Answer: D,E

Question 3

What are the factors that procurement department strives for in sourcing to create value for the business?

Options :

A : Price, Delivery, Cost, Ethics, Sustainability, Shortage

B : Price, Delivery, Quality, Ethics, Sustainability, Availability

C : Price, Gearing, Quality, Ethics, Sustainability, Turnover

D : Cost, Delivery, Quality, Turnover, Sustainability, Availability

Answer: B

Question 4

When assessing supplier's proposals, which of the following is the group of items that procurement professional should spend the least time and resources?

Options :

A : Routine items

B : Bottleneck items

C : Leverage items

D : Strategic items

Answer: A

Question 5

Organisations which do not take action to prevent bribery practices in their supply chains are exposed to which of the following?

Options :

A : More suppliers

B : Higher costs

C : Reputational damage

D : Poor credit rating

Answer: C