APM PMQ: 5 Procurement Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
When must a project Before any organisation, public or
procurement strategy be private, decides to invest funds
created?
Why are procurement 1. Budgets are not exceeded
strategies created? (3)
2. The investment provides the
return or benefit that was originally
intended
3. The investment aligns with the
bigger picture strategy of the
organisation
What must a procurement A process for acquiring goods and/or
strategy document in order to services as well as their subsequent
be useful/successful? management
What three things are always 1. Make or buy decision
included in procurement
strategies? 2. Supplier selection
3. Decision on contractual
relationship
What is usually included in 1. Selection process
supplier selection? (3)
, 2. Decision on use of single,
integrated or multiple suppliers
3. Plan for negotiation
What is usually included in 1. Conditions and forms of contract
"decision on contractual
relationship" 2. Supplier reimbursement terms
What two questions should be Whether the goods or services can
considered during "make or be manufactured or supplied
buy" in-house Whether they can be
procured elsewhere at a better
quality or more cost effectively
What four things should be 1. The specifications required
considered when making the
"make or buy" decision? 2. The capacity, speed and
availability of goods/services
3. The required quality aspirations
4. Internal and external stakeholder
engagement
Why do organisations have To ensure that any competitive
processes in place to ensure tender process is not only effective
that supplier selection rules but also transparent and fair
and guidelines are followed?
What are the 6 elements to a 1. Research the market
"Supplier selection and
negotiation" process? 2. Pre-qualify suppliers
Questions and Answers with Verified
Solutions | Latest Updated 2026
When must a project Before any organisation, public or
procurement strategy be private, decides to invest funds
created?
Why are procurement 1. Budgets are not exceeded
strategies created? (3)
2. The investment provides the
return or benefit that was originally
intended
3. The investment aligns with the
bigger picture strategy of the
organisation
What must a procurement A process for acquiring goods and/or
strategy document in order to services as well as their subsequent
be useful/successful? management
What three things are always 1. Make or buy decision
included in procurement
strategies? 2. Supplier selection
3. Decision on contractual
relationship
What is usually included in 1. Selection process
supplier selection? (3)
, 2. Decision on use of single,
integrated or multiple suppliers
3. Plan for negotiation
What is usually included in 1. Conditions and forms of contract
"decision on contractual
relationship" 2. Supplier reimbursement terms
What two questions should be Whether the goods or services can
considered during "make or be manufactured or supplied
buy" in-house Whether they can be
procured elsewhere at a better
quality or more cost effectively
What four things should be 1. The specifications required
considered when making the
"make or buy" decision? 2. The capacity, speed and
availability of goods/services
3. The required quality aspirations
4. Internal and external stakeholder
engagement
Why do organisations have To ensure that any competitive
processes in place to ensure tender process is not only effective
that supplier selection rules but also transparent and fair
and guidelines are followed?
What are the 6 elements to a 1. Research the market
"Supplier selection and
negotiation" process? 2. Pre-qualify suppliers
