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  • Exam Name: Procurement and Supply Environments
  • Last Update: 18-Apr-2024
  • Questions and Answers: 90
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L3M1 Questions and Answers

Question # 1

The system by which organisations are directed and controlled, thinking about business ethics and stakeholder responsibility, and where Directors may be held to account, is called:

A.

Corporate Identity

B.

Corporate Social Responsibility

C.

Corporate Manslaughter

D.

Corporate Governance

Question # 2

Under a contract with a price adjustment clause, which of the following would commonly be grounds for price adjustment (depending on the precise contract terms)?

A.

Quality problems brought about by supplier’s haste to complete the contract to aid their cashflow

B.

Substantially escalating materials costs

C.

Exchange rate fluctuations

D.

Desire by shareholders to have increased profits

Question # 3

Which of the following would be / should be subject to health and safety legislation?

A.

All of them

B.

Smoking cigarettes inside offices, factories and other buildings

C.

The manual lifting of heavy objects

D.

Floors, passages and stairs should be properly constructed, maintained and kept clear

E.

The need for appropriate firefighting equipment in a factory

Question # 4

Because of the need for frequent or semi-frequent uses of competition, public sector buyers are less likely to find themselves in a close partnership arrangement with a supplierthan private sector buy-ers.True or false?

A.

False

B.

True

Question # 5

‘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?

A.

John Milton

B.

Milton Friedman

C.

John Maynard Keynes

D.

Milton Keynes

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