Question 1

Incoterms are designed to be understood and interpreted on a worldwide basis. What is the interpretation for FOB (Free on Board)?

Options :

A :

The buyer takes responsibility for the goods after they are loaded on the ship, plus all subsequent costs, including freight charges

B :

The buyer takes responsibility for the goods after they are loaded on the ship, plus subsequent costs, excluding freight charges

C :

The buyer takes responsibility for taking the goods from the departure quayside to the ship, plus all subsequent costs

D :

The buyer takes responsibility for transferring the goods from the seller-s premises to the ship, plus all subsequent costs

Answer: A

Question 2

Which of the following is the best description of in-sourcing?

Options :

A : To source goods or services from companies which belong to the same group

B : A private network within an organisation or group of organisations

C : To bring a function of activities back in-house after previously being outsourced

D : To source goods or services from functions within a company or an organisation

Answer: C

Question 3

Which of the following can be done by procurement professional to understand supplier's ethical practice during pre-qualification stage?

1. Reviewing contract performance between buyer and supplier

2. Spying on supplier's activities

3. Requesting for qualifications of product or service

4. Checking on media reports

Options :

A : 2 and 3 only

B : 1 and 2 only

C : 1 and 4 only

D : 3 and 4 only

Answer: D

Question 4

Organisations which do not take action to prevent bribery practices in their supply chains are exposed to which of the following?

Options :

A : More suppliers

B : Higher costs

C : Reputational damage

D : Poor credit rating

Answer: C

Question 5

FTSE100 and Sensex are examples of what?

Options :

A : stock markets

B : commodity indices

C : financial reports

D : public sector organisations

Answer: A

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