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質問 # 34
Which of the following would not normally be seen as part of public sector procurement?
- A. An emphasis on the use of the competitive principle
- B. Pursuit of equal opportunities policies, internally and externally
- C. Achieving defined service levels
- D. Personal financial rewards from suppliers for buyers in return for awarding contracts
- E. Personal bonus payments for procurement staff, linked to savings made
正解：D、E
解説：
Public sector procurement staff are expected to work and offer their best to their employer, normal-ly without additional reward for creating cost savings, which is part of their work; and they should not receive rewards from suppliers.
This latter point takes us into the area of procurement ethics, which CIPS regards as being particu-larly significant for procurement professionals.
The other answers shown are typical features of public sector procurement.
質問 # 35
Thinking of Michael Porter's Industry Structure Analysis (commonly referred to as Five Forces Analysis), the content of the centre circle is about:
- A. Governmental regulation of competition within an economy
- B. Governmental interference in an industry
- C. Competitor price-cutting to increase market share
- D. Competitive rivalry within the industry
正解：D
解説：
Competitive rivalry within an industry.
This can be quite an important point, and why I have such a dislike of the less formal title for the model - the model is about entire industries, not just about a single firm - this is commonly misun-derstood by students (and sadly, some tutors) - and the original Porter title - 'Industry Structure Analysis' - helps us understand that, I think. I find this tool of analysis to be very helpful in under-standing behaviour within sectors, despite criticism of the model and its age from some commenta-tors The other answers shown are mere fictions.
質問 # 36
Which of the following could be described as an organisation?
- A. A business such as Ethiopian Airlines
- B. A local authority / local government
- C. The University of Phoenix, Arizona
- D. A self-employed tutor of online education
正解：A、B、C
解説：
All except the self-employed tutor have a social arrangement with collective goals, and controls on performance.
The self-employed tutor may have a goal, but it is not collective; is not part of a(n internal) social arrangement and controls on performance may be entirely in their own hands, or perhaps even ab-sent altogether.
質問 # 37
Which of the following are examples of non-renewable resources?
- A. Oil
- B. Wind power from wind turbines
- C. Coal
- D. Hydro-electric
正解：A、C
質問 # 38
In which one of the following sectors would you least expect to find seasonal unemployment:
- A. Construction
- B. Tourism
- C. Agriculture
- D. Policing
正解：D
解説：
Agriculture and tourism are normally associated with high levels of seasonal employment, and hence to some extent, unemployment.
Construction also often has an element of seasonality. For example, there is a saying in Alaska: 'there are two seasons - winter and construction', although in some less extreme climates construc-tion carries on year-round.
In most situations, we normally expect police employment levels to be relatively consistent through-out the year.
質問 # 39
'The optimum combination of whole life costs and quality' is one definition of:
- A. Quality circles
- B. Value for money
- C. Contractual agreement (in English law)
- D. Life cycle costing
正解：B
解説：
An earlier widely-used definition of value for money as the right combination of price and quality has been updated to include the notion of whole-life costing.
The other answers shown are simply 'red herrings'.
質問 # 40
Which of the following are examples of non-renewable resources?
- A. Oil
- B. Wind power from wind turbines
- C. Coal
- D. Hydro-electric
正解：A、C
解説：
Coal and oil are the correct answers. These are finite resources and will run out some day.
The others shown are renewables.
質問 # 41
Which of the following would be / should be subject to health and safety legislation?
- A. The need for appropriate firefighting equipment in a factory
- B. The manual lifting of heavy objects
- C. Floors, passages and stairs should be properly constructed, maintained and kept clear
- D. All of them
- E. Smoking cigarettes inside offices, factories and other buildings
正解：D
解説：
All of these.
質問 # 42
The idea / practice that some users / internal customers will spend organisational funds without in-volving procurement professionals when required to do so by organisational rules, is called:
- A. Merchandise buying
- B. Nonconformist procurement
- C. Maverick buying
- D. Off balance sheet procurement
正解：C
解説：
One of the best ways to combat maverick buying is for procurement to be seen to be doing a good job, reducing the justification in colleagues' minds for going outside the system.
The other terms shown in the answers are simply made up to create the question.
This is your final question in this practice exam - good luck in the real exam!
質問 # 43
'The costs of business activities which are not reflected in the costing of a product or service and paid for by consumers, but which are borne by the wider community - such as the costs of pollution and associated ill health, traffic congestion or environmental degradation' are known as:
- A. Overheads
- B. Taxation
- C. Externalities
- D. Exclusions
正解：C
解説：
We are now aware that the cost of externalities to society are considerable. A simple example would be that proximity to flow of motor vehicles is likely to increase ill-health requiring state-funded medical services where they exist, to treat at state (taxpayers') expense those who become ill. In the UK the number of people affected this way is believed to be numbered in the tens of thousands an-nually. Thus some businesses' cost structures do not reflect their true cost to society.
Another example would be the discharge of untreated waste into rivers or the sea, where the com-panies undertaking these activities may not be contributing financially to the cleaning up required.
In future years there is likely to be much debate about this, as some people will attempt to find ways to make companies pay the full cost of running their businesses.
質問 # 44
Which of the following is likely to reduce 'capital growth'? Select all that apply.
- A. Increased profit
- B. Payment of high salaries and large allowances to senior managers
- C. Increased sales
- D. Payment of dividends
正解：B、D
解説：
Payment of high salaries and large allowances, may, fairly obviously reduce the amount of profit which can be retained for capital growth. If money is being distributed in this way, it isn't being re-tained.
A profitable company has a choice: to pay dividends to a greater or lesser extent; or retain some of its profits to a greater or lesser extent in the form of retained capital - capital growth.
Increased sales and increased profit may result in increased capital growth, all other things being equal, depending on the firm's dividend policy.
質問 # 45
Which of the following is least risky from the buyer's viewpoint?
- A. Payment in full at time of order
- B. Payment of 50% at time of order; with balance to be paid 90 days after delivery
- C. Payment 60 days after delivery
- D. Payment on delivery
正解：C
解説：
Payment (the implication here is 'in full') 60 days after delivery allows the buying organisation time to check the goods carefully, and possibly even use them in that time.
All of the other options would require the buyer to part with money prior to holding the goods, thus exposing that sum to risk. The least risky from the buyer's viewpoint is therefore after 60 days.
Particularly hazardous would be payment at time of order.
質問 # 46
A 'firm price' and a 'fixed price' are the same thing.
True or false?
- A. True
- B. False
正解：B
解説：
To the lay person, they may look the same.
However, for a procurement professional, a fixed price may be altered in some circumstances eg 'fixed price with incentive', 'fixed price with exchange rate adjustment', etc.
A firm price on the other hand cannot be altered, and is the price which will be paid under the con-tract.
An earlier text by Patrick Behan on government contracting refers.
質問 # 47
A market situation where there is only one supplier is called:
- A. Monopsony
- B. Imperfect competition
- C. Monopoly
- D. Oligopoly
正解：C
解説：
The correct answer is, of course, 'monopoly'.
質問 # 48
Continuously gathering and analysing intelligence from sources such as professional, industry and trade journals, websites, conferences and exhibitions, published reports and online databases is called:
- A. Purchasing research
- B. Environmental scanning
- C. Data analysis
- D. Industrial espionage
正解：B
解説：
Continuously scanning the environment can bring rewards in the form of new supply companies, new products and services, awareness of supply firm or industry difficulties, etc.
Purchasing research is a very close answer to the correct one, but is likely to be more focussed, spe-cific.
If faced with a difficult choice as to which of two options in the exam is correct, think about what was included as part of your syllabus.
In this case, environmental scanning is the first entry in your Learning Outcome 3.1
質問 # 49
A market situation where there is only one buyer in the marketplace is called:
- A. Monopoly
- B. Perfect competition
- C. Monopsony
- D. Oligopoly
正解：C
解説：
A market with only one buyer is called a 'monopsony'.
There may be other questions in this test about the other terms shown, so I shall hold back on expla-nation(s) here.
質問 # 50
Shareholders of a limited company are not liable for unpaid debts'. True or false?
- A. True
- B. False
正解：A
解説：
This is true: the liability of shareholders is limited to their agreed financial commitment, not beyond that.
質問 # 51
A market situation where there is a small number of large suppliers is called:
- A. Monopsony
- B. Monopoly
- C. Perfect competition
- D. Oligopoly
正解：D
解説：
A monopoly is a single supplier (or for some authorities where one supplier has control of the market eg 75% market share); a monopsony is a single buyer.
Perfect competition involves many suppliers and many buyers.
The clue here is the 'small number' of suppliers.
質問 # 52
Which of the following constitute non-tariff barriers to trade?
- A. Increased import duties
- B. Complex customs procedures and paperwork for any goods crossing borders
- C. Reduced import duties
- D. Government subsidies to domestic producers
正解：B、D
解説：
Non-tariff barriers are restraints on international trade which are not so obvious as simple duties or tariffs. Complex procedures can slow things down, reducing the incentive to export to that country resulting in protected domestic business; subsidies to one's own producers make it more difficult for foreign firms to compete - again creating a barrier to trade.
Increased import duties would be a form of tariff (potentially in breach of GATT / WTO agree-ments); reduced import duties would free up / encourage trade.
質問 # 53
On a diagram of the Product Life Cycle, the x-axis shows:
- A. Growth
- B. Profit
- C. Decline
- D. Time
正解：D
解説：
The x-axis shows time. For some products, it may represent a year; for others, a century.
The other answers given could all be shown on the y-axis of the PLC, depending on circumstances.
質問 # 54
The letters 'MNC' stand for:
- A. Multi-national company
- B. Multi-national co-operative
- C. Multi-national corporation
- D. Multi-national conglomerate
正解：C
解説：
'Multi-national corporation' is the correct answer. Very large international organisations, with very large turnover, purchasing power and influence. Examples would include: Alphabet, Amazon, Ap-ple, Dell, Ford, Shell, Toyota, etc
質問 # 55
A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a --------- clause:
- A. Retention
- B. Intention
- C. Redemption
- D. Retainer
正解：A
解説：
'Retention' - from the word 'retain', meaning to 'keep in place', 'hold back', 'keep possession of' something (Concise Oxford Dictionary, fifth edition) . In this case, 5% of the contract price.
質問 # 56
Which of the following are core stakeholders of a private sector organisation? Select all that apply.
- A. Customers
- B. The insurers of the headquarters building
- C. Shareholders
- D. The local authority / government where the headquarters building is located.
正解：A、C
解説：
Both customers and shareholders are core stakeholders of a private sector organisation, although this fact appears to be somewhat diluted in the minds of some modern-day academics and commenta-tors. The shareholders are the owners of the business - it is for them that everyone is working and their objective is invariably profit. The profit is derived from religiously focusing on another core stakeholder group - the customers. If either of these two stakeholder groups is ignored, it is unlikely that happy times lie ahead.
質問 # 57
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