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NEW QUESTION # 45
The letters 'ESE' stand for:
- A. External supplier expertise
- B. External storage environment
- C. Early supplier engagement
- D. Early supply estimate
Answer: C
Explanation:
Early supplier engagement - one of the assessment criteria for this course (3.1)
NEW QUESTION # 46
What do we call a contract term which is part of the contract, but which is not written into the con-tract documents?
- A. Vague
- B. Express
- C. Implied
- D. Hidden
Answer: C
Explanation:
In English law, implied terms exist, even if you can't see them in the contract documents. They commonly derive from statute. An example is the Sale of Goods Act.
NEW QUESTION # 47
A bottle of sparkling water sells for $1. The variable cost is 50 cents. Fixed costs for the business are $100,000 (one hundred thousand dollars). How many bottles of water must be sold for the business to reach breakeven point?
- A. 2 million
- B. 50,000
- C. 200,000
- D. 20,000
Answer: C
Explanation:
The 'contribution' (selling price minus variable cost) for each bottle is 50 cents. Divide the fixed costs by the contribution (100,000 / 0.5) = 200,000 If your textbook or tutor has not covered this type of calculation, don't worry; it is a difficult ques-tion and is unlikely to be a significant issue in the CIPS examination.
NEW QUESTION # 48
Assume you calculate a selling price by adding a profit element onto costs. Assume the profit ele-ment is equivalent to 100% of costs.
Is mark-up or margin being described here?
- A. Don't know.
- B. Mark-up
- C. (Well take a guess then...)
- D. Margin
Answer: B
Explanation:
When price is discussed as a % of costs to be added on, the term is 'mark-up'.
NEW QUESTION # 49
Which one of the following is least likely to be a barrier to free trade?
- A. Trading blocs
- B. Embargoes
- C. Exchange controls
- D. Subsidies for exporters and internal producers of products
Answer: A
Explanation:
Trading blocs eg EU, EFTA, ASEAN aim to free up trade within the bloc; the other answers of-fered will negatively affect free trade.
NEW QUESTION # 50
Goods or services which must be used together are called:
- A. Substitutes
- B. Complements
- C. Compliments
- D. Condiments
Answer: B
Explanation:
The items are complementary. Complements.
For example, a Tesla car and a Tesla charging point.
NEW QUESTION # 51
Which of the following is unlikely to be regarded as a conformance specification?
- A. A brand name
- B. A statement of outputs
- C. Drawings
- D. A chemical formula
Answer: B
Explanation:
Outputs link to the concept of a performance (or 'output') specification, not a conformance specifi-cation.
NEW QUESTION # 52
What is the name given to costs which do not vary as activity levels in a business increase or de-crease?
- A. Fixed costs
- B. Direct costs
- C. Variable costs
- D. Indirect costs
Answer: A
Explanation:
The answer is fixed costs. Their counterpart are variable costs, which do vary as business activity increases or decreases.
Direct and indirect costs are a different method of categorizing costs within an organisation.
NEW QUESTION # 53
Which one of the following is not an 'E' from STEEPLE?
- A. Ethical
- B. Epistemological
- C. Environmental
- D. Economic
Answer: B
Explanation:
Even if you don't know what 'Epistemological' means, you should know it's the odd one out.
It relates to the philosophical study of knowledge.
NEW QUESTION # 54
Which one of the following is from the STEEPLE framework?
- A. Socio-economic
- B. Socio-logical
- C. Socio-technical
- D. Socio-pathic
- E. Socio-cultural
Answer: E
Explanation:
Socio-cultural. The only 'S' in the framework.
NEW QUESTION # 55
A contract clause indicating damages to be recovered in the event of under-performance, with the proposed damages being a genuine pre-estimate of loss, is called a:
- A. Liquidated damages clause
- B. Unliquidated damages clause
- C. Punitive damages clause
- D. Penalty clause
Answer: A
Explanation:
Liquidated damages clause.
The question is pretty much a definition of a liquidated damages clause.
NEW QUESTION # 56
Which of the following is least likely to lend itself to whole life cost calculations?
- A. Contract caterer for staff restaurant
- B. A single photocopier for long-term office use
- C. Crane for a construction site
- D. Supply of fresh flowers for the reception desk
Answer: D
Explanation:
Not only are the flowers a relatively short-term acquisition of low value, there are unlikely to be many whole life cost elements / possibilities.
The other suggestions however, contain a minefield of long-term cost possibilities.
NEW QUESTION # 57
When negotiating, it is highly desirable to have both a:
- A. ZOPA and a TABNA
- B. BATNA and a ZOPA
- C. BATNA and a FOPA
- D. DOPA and a BANTA
Answer: B
Explanation:
Best alternative to a negotiated agreement; and a zone of potential agreement.
The other terms shown are just fictions.
NEW QUESTION # 58
Which STEEPLE factor deals with issues of foreign exchange rates, inflation, consumer spending, labour costs and unemployment levels?
- A. Political
- B. Socio-cultural
- C. Environmental
- D. Economic
Answer: D
Explanation:
Economic.
I think foreign exchange at least couldn't fit into any other STEEPLE factor, so that's a clincher and it has to be 'economic'.
NEW QUESTION # 59
Qualitative research / data can accurately be described as XXX rather than 'counting'. What is XXX?
- A. Prying
- B. Enumerating
- C. Probing
- D. Summarising
Answer: C
Explanation:
Probing.
Qualitative research enables a researcher to develop themes of interest, in more depth than simpler quantitative research.
NEW QUESTION # 60
If your organisation takes out insurance cover to address various risks, which one of the following risk management strategies is it adopting?
- A. Terminate
- B. Tolerate
- C. Treat
- D. Transfer
Answer: D
Explanation:
Transfer.
Some of the risk has been transferred to the insurance company.
NEW QUESTION # 61
Which of the following is least likely to be called a 'spot' purchase?
- A. A three-year office cleaning contract
- B. Procurement of an ergonomic office chair for a colleague who suffers from regular backache
- C. Redecoration of the office over the weekend
- D. A single shipload of grain from Canada
Answer: A
Explanation:
The three-year contract is a term contract.
The other requirements shown are of a 'one-off' nature, and could therefore be called 'spot' purchases.
NEW QUESTION # 62
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