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Level 2 Certificate in Procurement and
Supply Operations

QU
EST
IO

NC3 - Procurement and
supply processes

EXAM EXEMPLAR QUESTIONS

PLE

MULTIPLE CHOICE QUESTIONS AND ANSWERS

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NC3 Exam Exemplar Questions Mar2013

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The correct answer will be identified as the [KEY]

5 Page 2 of 6 NC3 Exam Exemplar Questions Mar2013 .1 CIPS study guide reference: Chapter 1.5 Q2 Question EST ION S Answers Which of the following defines a ‘fixed price contract’? Answers (a) A contract where the price has been quoted in writing by the supplier (b) A contract where the price may be varied using an agreed formula (c) A contract where the price is the same as for previous orders (d) A contract where the price cannot be varied between the purchaser and seller.2 PLE QU SA M CIPS study guide reference: Chapter 2. section 2. [KEY] Learning outcome: 1.Q1 Question Which of the following terms describes an agreement where a supplier agrees to provide an estimated quantity of items over an agreed period at an agreed price? (a) Blanket order [KEY] (b) Spot order (c) Major works order (d) Fixed price order. Learning outcome: 1. section 1.

Q3 Question An organisation will issue a ‘restricted tender’ to which of the following types of supplier? Answers (a) International suppliers (b) Pre-qualified suppliers [KEY] (c) Suppliers based in the organisation’s local area (d) Suppliers not used in the past. [KEY] Learning outcome: 2. section 2.1 PLE QU SA M CIPS study guide reference: Chapter 4.3 CIPS study guide reference: Chapter 3.12 Q4 Question EST ION S During which of the following stages of the purchasing cycle is Internet based research used? Answers (a) Measuring a supplier’s performance (b) Agreeing the terms of the contract (c) Receiving goods from a supplier (d) Sourcing the supply market.4 and 2. sections 1. Learning outcome: 1.1 NC3 Exam Exemplar Questions Mar2013 Page 3 of 6 .

Chapter 6. Learning outcome: 2. sections 1.1 and 1. sections 2.3 PLE QU SA M CIPS study guide reference: Chapter 4.3 and 2.3 Page 4 of 6 NC3 Exam Exemplar Questions Mar2013 .4.Q5 Question Which of the following is a source of financial information about suppliers? (a) Market research companies (b) Credit rating agencies [KEY] (c) Chambers of commerce (d) Debt collection agencies. section 2. Learning outcome: 2.1 Q6 Question EST ION S Answers Which of the following defines the term ‘intranet’? Answers (a) An information network whose use is restricted to internal users [KEY] (b) A search engine that allows users to access the World Wide Web (c) An information network which any external users can access (d) A web site that provides answers to frequently-asked questions.2 CIPS study guide reference: Chapter 5.

section 2.1 Q8 Question EST ION S Answers Which of the following types of record are held in a purchase ledger? Answers (a) Records of stock usage (b) Records of payments received from customers (c) Records of suppliers’ quotations (d) Records of payments made to suppliers.Q7 Question Which of the following provides the purchaser with information of the user’s specific requirements? (a) e-notice (b) e-requisition [KEY] (c) e-contract (d) e-catalogue.34 NC3 Exam Exemplar Questions Mar2013 Page 5 of 6 . [KEY] Learning outcome: 3.1 CIPS study guide reference: Chapter 7. section 1. Learning outcome: 3.2 PLE QU SA M CIPS study guide reference: Chapter 8.

17 Page 6 of 6 NC3 Exam Exemplar Questions Mar2013 .3 CIPS study guide reference: Chapter 9. section 1.2 Q10 Question EST ION S Answers At which of the following stages of the purchasing cycle is the technique of ‘vendor rating’ used? Answers (a) Measuring supplier performance [KEY] (b) Preparing the specification (c) Receiving goods from suppliers (d) Identifying new sources of supply.Q9 Question Which of the following is the earliest stage in the purchasing cycle? (a) Award the contract (b) Negotiate best value (c) Define the need [KEY] (d) Source the market.3 QU SA M CIPS study guide reference: Chapter 9. Learning outcome: 3. section 5. PLE Learning outcome: 3.