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NEW QUESTION 39
Value for money is often described at the 'three Es'; economy, efficiency and effectiveness. However some people consider a 4th E which refers to the public sector. What is the fourth E?
- A. Ethics
- B. Equity
- C. Environment
- D. Equality
Answer: B
Explanation:
Equity is the fourth E- this means the extent to which the service is available. See p.65 for details on the 4 Es
NEW QUESTION 40
Gabriel is a procurement manager who wishes to explore a new avenue to procure products for his company. His manager has told him that he should invite internal stakeholders to a meeting to get their feedback. Who should Gabriel invite? Select THREE.
- A. customers
- B. end-users
- C. legal department
- D. employees
- E. suppliers
Answer: B,C,D
Explanation:
Internal stakeholders are those who work within the business so include the legal department, employees and end-users. End-users mean those people and departments who will be using the product or service. For example if Gabriel is procuring new software- an end-user would be anyone who would be using that software (whether they're employees, volunteers or agencies). CIPS outlines types of stakeholders on p.64
NEW QUESTION 41
Which of the following are possible drivers for partnership sourcing? Select THREE.
- A. The need to improve performance to satisfy the end customer
- B. The protection of intellectual property rights
- C. The marketplace has become more volatile
- D. Working together will create synergies
Answer: A,C,D
Explanation:
To increase production costs and lead-times
Explanation:
The correct answers are; The marketplace has become more volatile, Working together will create synergies and The need to improve performance to satisfy the end customer. Further Drivers of Partnership Sourcing can be found on p.127. The other answers are incorrect as entering a partnership won't protect intellectual property rights- in fact that's one of the big risks of entering into a partnership. Partnerships won't increase costs and lead-times, they're likely to decrease them.
NEW QUESTION 42
In a monopoly market, which of the following statements is true?
- A. There is strong rivalry
- B. bargaining power of buyers is strong
- C. There is a threat of new entrants
- D. bargaining power of suppliers is strong
Answer: D
Explanation:
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39
NEW QUESTION 43
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