Question 1

Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.

Options :

A : Cost overruns

B : Decreasing percentage of missed delivery overtime

C : Transparent decision makingprocess

D : Less frequent communication on business requests

E : Duplication of effort

Answer: B,C

Question 2

An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

Options :

A : Directive

B : Persuasive reasoning

C : Coalition

D : Visionary

Answer: C

Question 3

XYZ Ltd is importing goods from overseas. They prefer to pay theirsupplier in their own currency. Which of the following is a true statement?

Options :

A : Supplier will receive less if XYZ-s currency appreciates

B : XYZ has an advantage in negotiating discounts if their currency appreciates

C : XYZ is able to pay less if their currency depreciates

D : XYZ has to pay more if their currency depreciates

Answer: B

Question 4

Professional buyer is planning for the next negotiation of a simple one-off contract. This negotiation is typified by which of the following? Select TWO that apply

Options :

A : Continuous dialogue with supplier

B : Total cost of ownership is themost important criterion

C : Vendor ratings will be used

D : Arm's-length approach

E : Pricing is the most important criterion

Answer: D,E

Question 5

All of the following shift the supply of watchesto the right except...?

Options :

A : An advance in the technology used to manufacture watches

B : A decrease in the wage of workers employed to manufacture watches

C : An increase in the price of watches

D : Manufacturers' expectation of higher watch prices in thefuture

Answer: C

Higher Test Marks with Free Online L4M5 Exam Practice

Buying Options: