Contract Administration (L3M3) Free Practice Test

Question 1

The official power to make legal decisions and judgments in a given location, for example

A. Jurisprudence

B. de jure

C. Jurisdiction

D. Jurassic

Correct Answer: C

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Question 2

The price at which suppliers wish to sell and buyers wish to buy; and the market clears, is called the

A. Polyvalent price

B. Equilibrium price

C. Closing price

D. Opprobrium price

Correct Answer: D

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Question 3

Tolerate, transfer, terminate or ...?

A. Take

B. Try

C. Test

D. Treat

Correct Answer: D

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Question 4

Which of the following are internal factors in supplier decision-making? Choose two.

A. Extent of competition in the marketplace

B. Customer perceptions of value

C. Shareholder and managerial expectations of profit

D. Cost of production

Correct Answer: C,D

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Question 5

Which STEEPLE factor deals with issues of foreign exchange rates, inflation, consumer spending, labour costs and unemployment levels?

A. Environmental

B. Political

C. Socio-cultural

D. Economic

Correct Answer: D

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Question 6

Looking specifically at how a quoted price compares to the cost of production is called:

A. Psycho analysis

B. Factor analysis

C. Price analysis

D. Cost analysis

Correct Answer: D

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Question 7

Which of the following statements is untrue? Select two.

A. A framework arrangement cannot be used for consultancy services, although it can be used for construction work.

B. The framework arrangement establishes the basic terms and conditions that will apply to subsequent orders

C. There is an obligation to buy under a framework arrangement

D. In most cases, a framework arrangement is not itself a contract.

Correct Answer: A,C

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Question 8

'The CIPS Code of Conduct states that procurement professionals should not accept any business gifts under any circumstances.' True or false?

A. False

B. True

Correct Answer: A

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Question 9

Transfer of the rights and obligations of a contract onto a third party, is called:

A. Association

B. Assignment

C. Acceptance

D. Assignation

Correct Answer: B

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Question 10

When a proposal fits with organisational strategy / direction / values, this can be described as:

A. Ailment

B. Alignment

C. Adjournment

D. Accompaniment

Correct Answer: B

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CIPS Contract Administration (L3M3) Free Practice Test