L3M1 Exam Dumps - CIPS Level 3 Advanced Certificate in Procurement and Supply Operations Questions and Answers

Explanation

Pre-qualification QUESTION NO:naire is the correct answer.

A supplier quotation comes from the supplier side; both the RFQ and the ITT are intended to be more formally binding, including the price element, than what is described here.

Explanation

A local independent supermarket would be a private sector organisation - that is one intended to make a profit. The others suggested here would all be not-for-profit.

Public sector organisations, although not created to make a profit, are generally referred to as 'public sector' - often funded from taxation - with 'not-for-profit' often being funded from members, do-nors, or other voluntary sources.

Explanation

This is simply false. Partnerships are normally unincorporated profit-oriented organisations eg ac-countants, lawyers, many consultancies, some retailers, etc. One significant factor about partnerships is that individuals' capital is normally at risk, unlike in limited companies, where the risk is limited.

Explanation

This is true. In my view, 'Industry Structure Analysis' is a better term, not only because that is what Michael Porter originally called it, but because it better describes what the model is about. For ex-ample, it reminds us that the model is not about a single firm, but it is about an entire industry, and the structure around that industry.

Explanation

To gain market share and to create shareholder value (increase the value of shares) are common aims of private sector organisations.

The other two answers are the antithesis of what firms usually want.

Explanation

This should be an easy question.

If you are unfamiliar with any of these terms, return to your textbook soon.

The RFQ is the action taken by procurement often, further to the requisition and other necessary documentation.

Explanation

This is a practice associated with some very close commercial relationships, in which each party has a high level of trust with the other.

'Open book costing' would be the seller revealing its costs to the buyer, without reciprocation.

Explanation

The correct answer, covering all of these, is 'economic'.

'Political' could also be considered, but 'economic' covers them all.

The other two answers suggested are not really relevant.

Explanation

The correct answer simply describes what fiscal policy is.

This topic is often mentioned or discussed in serious radio / TV news broadcasts.

Explanation

The correct answer is to provide services. However, some other secondary factors may come into play. For example, some public sector organisations may be encouraged to boost national prestige eg airports, airlines; or they may be used as job creation schemes.