L4M4 Practice Questions

A.  

ex works

B.  

delivered duty paid

C.  

cost and freight

D.  

delivered at place

A.  

Cash flow statement (statement of cash flow) and balance sheet (statement of financial position)

B.  

Balance sheet (statement of financial position) and profit and loss account (statement of financial performance)

C.  

Profit and loss account (statement of financial performance) and chairman’s statement (in the annual report)

D.  

Cash flow statement (statement of cash flow) and profit and loss statement (statement of financial performance)

A.  

Cash flow statement & profit and loss account

B.  

Cash flow statement & balance sheet

C.  

Balance sheet & profit and loss account

D.  

Profit and loss account & chairman’s statement

A.  

Local Anti-Corruption Legislation

B.  

Transparency International (TI)

C.  

United Nations Sustainable Development Goals (UNSDGs)

D.  

International Court of Arbitration (ICC)

E.  

International Standards Organisation (ISO)

A.  

Yes, because this rating indicates poor financial management practices

B.  

No, because a credit rating is only one financial tool to be used in determining financial competence

C.  

No, because a credit rating is not an appropriate decision-making tool

D.  

Yes, because this rating means that insolvency or liquidation is imminent

A.  

Yes- added value should be assessed along with price

B.  

Yes- added value is the same for all organisations

C.  

no - added value may change from one company to another

D.  

no- added value is always intangible

A.  

The bidders must be pre-qualified prior to invitation to tender

B.  

There must be an adequate number of suppliers in the market

C.  

The tender will only be advertised in marketing journals

D.  

The price will be the only criterion for supplier selection

A.  

Yes, the procurement buyer should assess and take all decisions to award the tender independently of the business managers to avoid conflict of interest

B.  

No, it is a lengthy, costly, and unnecessary step for the procurement buyer to engage business managers

C.  

No, the buyer's recommendations are not relevant to the final sourcing decision, which must be taken by the business managers

D.  

Yes, the procurement buyer can advise on the competitive proposal but should engage with the business managers about the decision to award the tender

A.  

When the value of the procurement is high and special tooling is a major factor

B.  

When the requirement is needed urgently and price is not the most important factor

C.  

When the suppliers have technical expertise, and the value of the procurement is relatively high

D.  

When the specification is likely to be continuously reviewed as the contract progresses

A.  

It is a widely used import document that confirms the origin of goods

B.  

It is a document that allows the temporary free movement of goods

C.  

It is only used when exporting goods from Europe and confirms the country of origin

D.  

It is a type of insurance cover to protect against loss of goods in transit