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Free L3M2 Exam Braindumps (page: 6)

Page 5 of 23
PDF with 90 Questions

Select the two words which explain least well why the procurement of services can be more chal- lenging than the procurement of physical products:

  1. Intangible
  2. Variable
  3. Permeable
  4. Inseparable
  5. Perishable
  6. Unimaginable

Answer(s): A,D

Explanation:

The correct answers to the QUESTION NO : are: 'unimaginable' and 'permeable'. 'Permeable' makes no sense here; and it is possible to imagine both physical products and services. The other four answers are distinguishing features of services, which result in services being more challenging to buy.



Giving or taking a payment of money to induce a person to act in breach of trust and do something they should not do is called:

  1. Embezzlement
  2. Extortion
  3. Fraud
  4. Bribery

Answer(s): D

Explanation:

Procurement professionals may be faced with offers of gifts including money in return for awarding contracts to a particular bidder, or similar. This is an attempt at bribery, which is illegal in most countries, and would be a breach of the CIPS Code of Conduct if the buyer were to accept. Anti-bribery legislation in countries such as the UK and US extends across borders, and penalties for breach of this legislation can include imprisonment.



A margin within which a specification can vary slightly ­ the outer limits of what is acceptable to the buyer ­ can be described as:

  1. Impedances
  2. Balances
  3. Tolerances
  4. Ordinances

Answer(s): C

Explanation:

The correct answer is 'tolerances'. The tighter the tolerance ie the more restrictive the specification, the more challenging for a supplier to deliver, and the more costly it is likely to become.



A chart of the concept of 'economies of scale' would have two axes.
Which two?

  1. Price per unit
  2. Cost per unit
  3. Scale of operations
  4. Economies of operation

Answer(s): B,C

Explanation:

The principle of economies of scale is that cost will decrease as the scale / volume of operations in- creases. Remember that 'cost' is not the same as 'price'.

See also 'learning curve' or 'experience curve'. A clear mathematical ratio between volumes and cost per unit can be calculated / determined. The concept of the learning curve originated within the air- craft manufacturing sector in the United States, where engineers drew up precise cost benefits as the quantity of aircraft manufactured increased - as experience was gained. These ideas can be very useful when negotiating price for large volumes, especially for new or be- spoke goods or services - the supplier's costs may decrease significantly as volumes or experience increase(s).






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