Online Access Free L4M4 Practice Test

A buyer might opt to do an 'Invitation to Tender' rather than a 'Request for Quotation' process because ...

• A.The nature of the goods or services being purchased is complex and high value
• B.The contract will be low value and there are many suppliers, so a simpler approach is required
• C.The supplier market is an oligopoly where there are a few large suppliers dominating the market
• D.Time is of the essence, and decisions need to be made quickly without additional stakeholder involvement

A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. There are many factors that need to be considered before arriving at such a decision. Which of the following factors is likely to justify the decision to make the requirements internally?

• A.External suppliers are likely to be overcharging
• B.The availability of in-house competencies and capacity to carry out the production
• C.The other suppliers are using older technology
• D.External sourcing involves cumbersome tendering procedures

Which of the following incoterms has the lowest risk to the buyer?

• A.delivered duty paid
• B.free on board
• C.carriage and insurance paid to
• D.exworks

Azram is a facilities category buyer within the UK police force and is managing an overseas sourcing project for police uniform and personal protective equipment. Azram is of the opinion that international sourcing will help deliver much-needed financial savings, which can be utilized in other areas of the UK police force.
Azram is aware that exchange rate fluctuations can create risk for his organisation. How can Azram remove this risk?

• A.Ask suppliers to quote in GBP Sterling
• B.Carry out a competitive tender exercise
• C.Request to use the exchange rate applicable at the time of delivery
• D.Evaluate international supplier's financial accounts

Phishing is a type of fraud that is commonly associated with which industry?

• A.IT
• B.Agriculture
• C.Mining
• D.Construction