SCMN 3730 STUDY GUIDE 2026 QUESTIONS AND SOLUTIONS SCORED

SCMN 3730 STUDY GUIDE 2026 QUESTIONS AND
SOLUTIONS SCORED A+
✔✔A/An _____ clause assumes the contract will be renewed every year unless the
supplier is otherwise notified that this is not the case.
a.
evergreen
b.
due diligence
c.
penalty
d.
escape
e.
None of the above. - ✔✔A

✔✔A/An _____ clause allows the buyer (and possibly the supplier) to terminate the
contract if either side fails to live up to contractual requirements.
a.
penalty
b.
evergreen
c.
systems contract
d.
time and materials
e.
escape - ✔✔E

✔✔A/An _____ contract is designed to provide access to expensive computer networks
and software that single companies are unable to afford on their own.
a.
time and materials
b.
systems
c.
firm fixed price
d.
cost-sharing
e.
evergreen - ✔✔B

✔✔Which of the following is not one of the basic levels of service that a systems
supplier can provide to the buyer?
a.

,Turnkey.
b.
Modular.
c.
Shared.
d.
All of the above.
e.
None of the above. - ✔✔E

✔✔In the _____ approach to a systems supplier's level of service, the client company
essentially turns over the entire outsourced service at a given point in time.
a.
modular
b.
incremental
c.
turnkey
d.
shared
e.
None of the above. - ✔✔C

✔✔In the _____ approach to a systems supplier's level of service, the outsource service
supplier takes on only two or three small functions from the client, using a stepping
stone approach.
a.
evergreen
b.
turnkey
c.
shared
d.
modular
e.
time and materials - ✔✔D

✔✔In the _____ approach to a systems supplier's level of service, the service provider
and the client company share resources and operational control over the outsourced
service.
a.
shared
b.
commonality
c.
evergreen

,d.
modular
e.
turnkey - ✔✔A

✔✔A/An _____ is new intellectual property (such as tools, methodologies, and
knowledge) developed as the result of the interaction between the enterprise and the
consulting company.
a.
evergreen contract
b.
output
c.
good
d.
service
e.
residual - ✔✔E

✔✔A/An _____ generally runs for a 12-month period and may or may not come up for
renewal at the end of the year.
a.
national contract
b.
annual contract
c.
open-ended agreement
d.
blanket order
e.
None of the above. - ✔✔B

✔✔A/An _____ specifies that the buyer will buy a certain amount of goods and services
for the duration of the agreement.
a.
pricing agreement
b.
evergreen clause
c.
national buying agreement
d.
national contract
e.
blanket order - ✔✔D

, ✔✔A/An _____ specifies that business units within a corporate organization must buy
from specific suppliers during the term of the contract.
a.
corporate agreement
b.
open-ended order
c.
online MRO catalog
d.
blanket order
e.
open-ended order - ✔✔A

✔✔A/An _____ is nonbinding on either the buyer or the supplier and typically provides
discounts to corporate buyers based on total volume for the corporation as a whole, not
for any subunits individually.
a.
annual contract
b.
pricing agreement
c.
corporate agreement
d.
escape clause
e.
national buying agreement - ✔✔E

✔✔A/An _____ is an agreement that typically covers many different items that can be
purchased under the same purchase order number, thereby minimizing repetitive
paperwork in the purchasing department for relatively low-cost items.
a.
annual contract
b.
national contract
c.
blanket order
d.
national buying agreement
e.
corporate agreement - ✔✔C

✔✔A/An _____ occurs in situations in which a buyer is allowed to automatically
discount the published purchase price by a negotiated percentage for all purchases
from a given price list or catalog during the contract period.
a.