Free Practice Questions for CIPS L3M1 Exam

Explanation

Pre-qualification QUESTION NO:naire is the correct answer.

A supplier quotation comes from the supplier side; both the RFQ and the ITT are intended to be more formally binding, including the price element, than what is described here.

Explanation

This is true: the liability of shareholders is limited to their agreed financial commitment, not beyond that.

Explanation

The x-axis shows time. For some products, it may represent a year; for others, a century.

The other answers given could all be shown on the y-axis of the PLC, depending on circumstances.

Explanation

Increasingly practised, albeit often quietly, protectionism seeks to protect domestic industries, re-ducing access to markets for foreign companies. The aim is normally to protect domestic worker's jobs, often with an eye on domestic politics. Industries recently (late 2020) mentioned in this subject area include agriculture, airlines, defence, shipbuilding, steel, etc - not just in UK or Europe, but worldwide.

The World Trade Organisation seeks to reduce protectionism - an activity supported by many econ-omists, as globalism is believed by many to increase global wealth overall.

However, this is not clear cut, and there are a variety of views.

Interventionism is not relevant to this QUESTION NO:, and preventionism is a made-up word.

Explanation

The answer is 'not-for-profit', meaning 'third sector' (charities, co-operatives, NGOs, etc). This is not the same as 'public sector'. You should be clear on this terminology.

Explanation

The answer is uncertainty avoidance. Even if you have never heard of Hofstede, you can select the correct answer based on the explanation given in the QUESTION NO:.

Although the word 'culture' does not appear in the syllabus, much of Learning Outcome 3.0 can be seen as referring to culture. Some understanding of culture, both organisational culture and national culture is essential to human interactions in the procurement and supply environment. Check out Geert Hofstede's website to learn more about his work.

Explanation

The vertical axis (the y-axis) of the product life cycle diagram could correctly show all three, and might commonly show losses and / or investment in the early stage(s).