CIPS Level 3 Advanced Certificate in Procurement and Supply Operations Certification L3M1 Sample Questions Reliable [Q52-Q73]

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CIPS Level 3 Advanced Certificate in Procurement and Supply Operations Certification L3M1 Sample Questions Reliable

Prepare for the Actual CIPS Level 3 Advanced Certificate in Procurement and Supply Operations L3M1 Exam Practice Materials Collection

CIPS L3M1 Exam Syllabus Topics:

Topic	Details
Topic 1	Types of Pricing Arrangements in Commercial Agreements: It focuses on explaining pricing arrangements of use in commercial agreements so an entity can have the most effective price and cost management. This sub-topic is important because through this the role of pricing in procurement and supply can be deciphered.
Topic 2	External Environment and Its Impact on Procurement and Supply: The external environment and their impact on procurement and supply comprise such subtopics as identification of the impact of the external environment and a description of implications of economic, political, legislative, environmental, ethical, and social criteria on the procurement and supply. Investigating these sub-topics is necessary for comprehending the external factors influencing procurement and supply.
Topic 3	Procedures that Regulate Procurement and Supply: It refers to the regulations that guide procurement and supply. The subtopics discuss the types of documentation in procurement and supply and how these documented policies and procedures help in working within this field. Knowledge of the subtopics presents an essential overview of how regulatory aspects work in procurement and supply.
Topic 4	Different Sectors of Procurement and Supply: Under this heading, there are different subtopics of the various sectors of procurement and supply including description of the categories and functions of private sector, roles, and scope of procurement in the private, public, not-for-profit third sectors. Understanding the above sub-topics is very essential in an attempt to understand the concept of procurement and supply in general in these different sectors.

Q52. ‘The value of a commodity or service measured in terms of the standard monetary unit’ describes:

Value for money

Price

Value added

Cost

Q53. Public sector procurement has a wider group of stakeholders than private sector. True or false?

False

True

Q54. Which one of the following is a commercial document issued by a buyer describing requirements for products or services to be provided by a seller?

Requisition

Purchase order

Invoice

Supplier quotation

Q55. The y-axis of the Product Life Cycle could properly show the following (select all that apply):

Losses

Profits

Sales

Q56. Which of the following could be described as an organisation?

A local authority / local government

A self-employed tutor of online education

The University of Phoenix, Arizona

A business such as Ethiopian Airlines

Q57. Doing the same with fewer resources is:

Efficiency

Effectiveness

Economy

Efficiency.

Q58. The total variety of life on Earth’ is CIPS’ definition of:

Depletion of renewables

Biodiversity

The environment

Corporate Social Responsibility

Q59. ‘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:

Externalities

Overheads

Taxation

Exclusions

Q60. Which of the following constitute non-tariff barriers to trade?

Increased import duties

Complex customs procedures and paperwork for any goods crossing borders

Reduced import duties

Government subsidies to domestic producers

Q61. Which of the following might be objectives of private sector organisations? Select all that apply.

To maximise taxation

To minimise profit

Shareholder value

Market share

Q62. Which one of the following is a commercial document issued by a seller seeking payment for goods or services?

Invoice

Supplier quotation

Pre-qualification question naire

Delivery note

Q63. The Kyoto Agreement is about:

Shipping freight rates

Climate change

Whale protection

Fishing rights

Q64. The principle that different spends may require different procedures, with different levels in the or-ganisational hierarchy having different spend authorisations is called:

Distributed authority

Delegated authority

Diluted authority

Devolved authority

Q65. Which of the following are normally not a source of funds for a third sector organisation?

Proceeds from sales of tobacco products

Proceeds from gambling
(Correct)

Grants from taxpayers

Charitable contributions

Merchandise sales revenue

Q66. Which of the following would not be part of the not-for-profit sector?

Trade unions

A religious organisation, such as a church or a mosque

Professional bodies such as CIPS

A local independent supermarket

Q67. Think carefully.
There is low consumer demand; production capacity is unused; prices are stable or are falling; busi-ness profits are low; unemployment is high; and business confidence is low. Is this:

Recovery

Recession

Boom

Depression

Q68. Thinking of Michael Porter’s Industry Structure Analysis (commonly referred to as Five Forces Analysis), the content of the centre circle is about:

Governmental regulation of competition within an economy

Competitive rivalry within the industry

Governmental interference in an industry

Competitor price-cutting to increase market share

Q69. ‘Cost transparency’ is the notion that:

The buyer will reveal its’ actual costs to the seller

Both sides will reveal their costs to each other

The seller will reveal its’ actual costs to the buyer

Cost is not an issue

Q70. A ‘mixed economy’ is:

One which is confused

One in which private and public sectors operate together

A market economy

A centrally-planned economy

Q71. A ‘genuine pre-estimate of loss’ describes:

A quantum meruit award

Liquidated damages

Unliquidated damages

A penalty clause

Q72. Shareholders of a limited company are not liable for unpaid debts’. True or false?

False

True

Q73. ‘The social responsibility of business is profit maximisation’ – focusing on returns to shareholders.
This is a famous business philosophy – in contrast to a philosophy of Corporate Social Responsibility as expounded by CIPS.
Which economic and management thinker famously promoted this view?

John Milton

Milton Friedman

John Maynard Keynes

Milton Keynes