Instant Download CIPS: L3M3 Free Updated Test Dumps
Valid L3M3 FREE EXAM DUMPS QUESTIONS & ANSWERS
NEW QUESTION # 11
A sum of money credited to a buyer by a seller in recognition of a large volume of purchases bought throughout the previous year might be called a:
- A. Retrospective reward
- B. Retrospective rebate
- C. Historic refund
- D. Vendor debit
Answer: B
Explanation:
It's a retrospective rebate, and can be a highly significant way of (often hidden) discounting for many businesses - sometimes a 'life-saver'. Something to think about in an open book costing situa-tion - are there rebates to suppliers which are 'forgotten' in discussions?
NEW QUESTION # 12
Which of the following would be unethical? Choose two.
- A. To place business with a company in which your sister works, having been instructed in writing to do so by your line manager
- B. To request quotations from several suppliers if the buyer has already decided where the contract will be awarded
- C. To request quotations if the buyer has no intention to purchase
- D. To negotiate with suppliers
Answer: B,C
Explanation:
Taking up suppliers' time if there is no intention to purchase from them is unethical.
Negotiating with suppliers is to be encouraged; following your line manager's instructions is general-ly regarded as being a good thing, although regarding ethical issues, one is encouraged to query.
NEW QUESTION # 13
Which of the following are external factors in supplier decision-making? Choose two.
- A. How badly the seller needs the business
- B. The selling firm's financial position
- C. Customer perceptions of value
- D. Market conditions, determining demand and supply
Answer: C,D
Explanation:
Market conditions, determining demand and supply, and customer perceptions of value are external factors. One could argue that customer perceptions of value can be altered by the selling company, but in the short-term this is clearly external.
NEW QUESTION # 14
In the written presentation of a business case, a brief explanation of everything in the case, includ-ing the ultimate recommendation, aimed at people (eg senior managers) who have little time to plough through the details.
- A. Cost-benefit analysis
- B. Executive summary
- C. Introduction
- D. Background
Answer: B
Explanation:
The Executive Summary summarises the situation for busy executives to save them working all the way through the detail.
The summary needs to be very well written, accurately reflective of the entire document, and in-clude the key points needed to make a balanced decision.
The executive summary should be written last of all the sections, and is often the only part of a document which will be read.
NEW QUESTION # 15
Contribution is equivalent to:
- A. Selling price minus fixed costs
- B. Selling price
- C. Selling price minus variable costs
- D. Selling price minus total costs
Answer: C
Explanation:
Selling price minus variable costs = contribution., or more accurately 'contribution towards fixed costs and making a profit'. I find this longer term for 'fixed costs' to be quite helpful in clarifying exactly what we are talking about here.
NEW QUESTION # 16
The official power to make legal decisions and judgments in a given location, for example
- A. de jure
- B. Jurisprudence
- C. Jurassic
- D. Jurisdiction
Answer: D
Explanation:
Jurisdiction.
American movies seem to spend half the time with law enforcement people arguing about who has jurisdiction.
Jurisprudence means the theory or study of law; Jurassic is about an age.
de jure means practices which are legally recognised, as opposed to de facto which is about the reali-ty (Wikipedia).
NEW QUESTION # 17
Which of the following would not normally be part of data required by the buying organisation's contract manager?
- A. Technical data
- B. Other customer data
- C. Performance data
- D. Financial data
Answer: B
Explanation:
Other customer data.
It would, I think, be very unusual for a contract manager to feel it appropriate to ask for information from a supplier representative about other customers. Business partners normally want their dealings to be private. However, in informal discussions, in the normal course of conversation, information is often transferred in a benign manner.
NEW QUESTION # 18
After a framework arrangement is in place, a further XXXX competition can be held. Which word replaces XXXX?
- A. Micra
- B. Mini
- C. Maxi
- D. Micro
Answer: B
Explanation:
A mini-competition may be held to select a supplier, depending on the wording in the framework arrangement documentation and circumstances at the time.
NEW QUESTION # 19
What is a contract?
- A. An agreement between two or more parties which, all other things being equal, is in-tended to be enforceable by law.
- B. An agreement between two or more parties which is enforceable in law.
- C. An agreement between two or more parties which is intended to be honoured.
- D. An agreement between two or more parties which is intended to be enforceable by any means feasible.
Answer: B
Explanation:
An agreement between two or more parties which is enforceable in law.
This definition separates a contract from a social or domestic arrangement, in that contracts are in-tended to be enforceable at law. The other answers shown here dilute the concept, and so are unac-ceptable as answers to the question.
NEW QUESTION # 20
What do we call a contract term which is part of the contract, but which is not written into the con-tract documents?
- A. Implied
- B. Hidden
- C. Express
- D. Vague
Answer: A
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 # 21
Win-win style negotiations are said to be:
- A. Cohesive
- B. Conducive
- C. Coherent
- D. Collaborative
Answer: D
Explanation:
Win-win negotiations require a collaborative approach.
NEW QUESTION # 22
Which of the following are genuine pieces of legislation in the UK?
- A. All of them
- B. The Freedom of Information Act 2000
- C. The Bribery Act 2010
- D. Public Contracts Regulations 2015
Answer: A
Explanation:
All of them.
This question is a bit of a gift for you, but you may wish to just think about the dates and the nature of the legislation. If there is any UK bias in your CIPS examination, this may be time well spent. For students based in the UK: these Acts are powerful and significant. At managerial level at least, one would wish to be familiar with the broad thrust of each of these, plus the implications of The Equality Act.
NEW QUESTION # 23
Johnson, Scholes and Whittington suggested three key criteria for options which can be used in the evaluation of a business case. Which word was not one of these three key criteria?
- A. Transferability
- B. Suitability
- C. Acceptability
- D. Feasibility
Answer: A
Explanation:
'Is it acceptable, feasible and suitable?' are the tests.
NEW QUESTION # 24
Which one of the following is from the STEEPLE framework?
- A. Socio-cultural
- B. Socio-logical
- C. Socio-economic
- D. Socio-technical
- E. Socio-pathic
Answer: A
Explanation:
Socio-cultural. The only 'S' in the framework.
NEW QUESTION # 25
What do we call the point when the supply firm makes neither a profit nor a loss ie where all costs are covered yet no profit is made?
- A. Point of no return
- B. Tipping point
- C. Trig point
- D. Breakeven point
Answer: C
Explanation:
Breakeven point. The firm breaks even: covers all of its fixed costs. At this point the firm has made neither a profit nor a loss, and hopefully is about to enter profitability.
NEW QUESTION # 26
Where the supplier guarantees to make good any losses suffered by the buyer as a result of product defects, for example
- A. Indebtedness
- B. Double indemnity
- C. Indemnity
- D. Insurance
Answer: C
Explanation:
Indemnity.
As in 'an indemnity clause'.
'The supplier hereby indemnifies the buyer against / in the event of...'
NEW QUESTION # 27
Imagine you discuss profit on an item for sale in your business as a percentage of the selling price. Assume the profit element represents 50% of the selling price. Is mark-up or margin being described here?
- A. Margin
- B. Mark-up
Answer: A
Explanation:
When profitability is spoken of as a % the selling price, the profit element is called the margin.
NEW QUESTION # 28
......
Free L3M3 Exam Braindumps CIPS Pratice Exam: https://freetorrent.dumpstests.com/L3M3-latest-test-dumps.html