PROCUREMENT FULL EXAM GRADED A+ 2025/2026 WITH
MULTIPLE CHOICES AND DESCRIPTION
Question 1:
Which of the following is the primary objective of procurement?
A) Maximizing supplier relationships
B) Reducing operational costs
C) Acquiring goods and services at the best value
D) Increasing production output
Answer: C) Acquiring goods and services at the best value
Description: Procurement focuses on obtaining the best possible value for goods and services.
This includes quality, cost, and timely delivery to meet the organization's needs effectively.
Question 2:
What is the purpose of a Request for Proposal (RFP)?
A) To formally invite bids for a project
B) To evaluate supplier performance
C) To initiate negotiations with a supplier
D) To request feedback from suppliers
Answer: A) To formally invite bids for a project
Description: An RFP is used to invite suppliers to submit detailed proposals for goods or
services, allowing the organization to evaluate various options before selecting the best supplier.
Question 3:
Which term describes a long-term agreement with a supplier to provide goods or services on
agreed terms?
A) Purchase Order
B) Blanket Contract
C) Open Tender
D) Single-Source Agreement
Answer: B) Blanket Contract
Description: A blanket contract involves a long-term agreement where the supplier provides
goods or services under specified terms without the need to negotiate each order.
Question 4:
What is the main advantage of e-procurement?
A) Reduces supplier diversity
B) Eliminates the need for contracts
, C) Streamlines the procurement process
D) Increases manual processing
Answer: C) Streamlines the procurement process
Description: E-procurement leverages technology to automate and enhance procurement
activities, reducing paperwork, minimizing errors, and improving efficiency.
Question 5:
Which of the following is NOT a key step in the procurement process?
A) Identifying requirements
B) Conducting market research
C) Employee performance reviews
D) Evaluating supplier proposals
Answer: C) Employee performance reviews
Description: Procurement focuses on identifying needs, researching suppliers, and selecting the
best option, whereas employee performance reviews are part of HR processes.
Question 6:
Which procurement strategy focuses on purchasing from a single supplier to build a strong
relationship?
A) Multi-sourcing
B) Sole sourcing
C) Strategic sourcing
D) Single sourcing
Answer: D) Single sourcing
Description: Single sourcing involves procuring from one supplier to foster a close relationship
and ensure consistency in quality and supply.
Question 7:
What is the primary purpose of a purchase order (PO)?
A) To negotiate payment terms with a supplier
B) To provide a detailed request for goods/services
C) To evaluate supplier quality
D) To monitor inventory levels
Answer: B) To provide a detailed request for goods/services
Description: A PO is a document sent to a supplier specifying the details of the order, including
quantity, price, and delivery terms.
Question 8:
MULTIPLE CHOICES AND DESCRIPTION
Question 1:
Which of the following is the primary objective of procurement?
A) Maximizing supplier relationships
B) Reducing operational costs
C) Acquiring goods and services at the best value
D) Increasing production output
Answer: C) Acquiring goods and services at the best value
Description: Procurement focuses on obtaining the best possible value for goods and services.
This includes quality, cost, and timely delivery to meet the organization's needs effectively.
Question 2:
What is the purpose of a Request for Proposal (RFP)?
A) To formally invite bids for a project
B) To evaluate supplier performance
C) To initiate negotiations with a supplier
D) To request feedback from suppliers
Answer: A) To formally invite bids for a project
Description: An RFP is used to invite suppliers to submit detailed proposals for goods or
services, allowing the organization to evaluate various options before selecting the best supplier.
Question 3:
Which term describes a long-term agreement with a supplier to provide goods or services on
agreed terms?
A) Purchase Order
B) Blanket Contract
C) Open Tender
D) Single-Source Agreement
Answer: B) Blanket Contract
Description: A blanket contract involves a long-term agreement where the supplier provides
goods or services under specified terms without the need to negotiate each order.
Question 4:
What is the main advantage of e-procurement?
A) Reduces supplier diversity
B) Eliminates the need for contracts
, C) Streamlines the procurement process
D) Increases manual processing
Answer: C) Streamlines the procurement process
Description: E-procurement leverages technology to automate and enhance procurement
activities, reducing paperwork, minimizing errors, and improving efficiency.
Question 5:
Which of the following is NOT a key step in the procurement process?
A) Identifying requirements
B) Conducting market research
C) Employee performance reviews
D) Evaluating supplier proposals
Answer: C) Employee performance reviews
Description: Procurement focuses on identifying needs, researching suppliers, and selecting the
best option, whereas employee performance reviews are part of HR processes.
Question 6:
Which procurement strategy focuses on purchasing from a single supplier to build a strong
relationship?
A) Multi-sourcing
B) Sole sourcing
C) Strategic sourcing
D) Single sourcing
Answer: D) Single sourcing
Description: Single sourcing involves procuring from one supplier to foster a close relationship
and ensure consistency in quality and supply.
Question 7:
What is the primary purpose of a purchase order (PO)?
A) To negotiate payment terms with a supplier
B) To provide a detailed request for goods/services
C) To evaluate supplier quality
D) To monitor inventory levels
Answer: B) To provide a detailed request for goods/services
Description: A PO is a document sent to a supplier specifying the details of the order, including
quantity, price, and delivery terms.
Question 8:
