Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?
Which of the following would you expect to find in an Invitation to Tender? Select THREE
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present. What type of sourcing relationship is a buyer likely to have with this supplier?
In which type of market would you be most likely to find a 'perfect competition'?
Which of the following should be considered when calculating ratios relating to a supplier's liquidity?
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
What type of relationship should a buyer seek when making strategic sourcing for their business?
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally. Which of the following is described by Incoterms? Select THREE.
Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier's liquidity? Select TWO.
Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down his supplier base and purchase from one supplier.
Which type of sourcing arrangement has Ramesh began?
Jamilla is looking to find a new supplier who can deliver raw materials of wood and paper to her company Woody Manufacturing Incorporated. The requirement is for regular orders of high volume. She has issued a Request for Quotation. What will this assess the suppliers on?
When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?
Which of the following incoterms relate specifically to transporting items over water?
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass. What relationship style would be best suited?
A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?
Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?
In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony. Which negotiation tactic is the supplier using?
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE
Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?
A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?
TESTED 19 May 2024
