PROCUREMENT MANAGEMENT EXAMINATION
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1. Procurement management refers to:
A. Selling goods
B. Acquiring goods and services from external sources
C. Cooking operations
D. Employee hiring only
Answer: B
Procurement involves purchasing goods/services needed by an organization.
2. The main goal of procurement is to:
A. Increase cost
B. Obtain quality goods at best value
C. Delay delivery
D. Reduce suppliers only
Answer: B
It ensures value for money in purchasing.
3. Procurement is part of:
A. HRM
B. Supply chain management
C. Marketing only
D. Accounting only
Answer: B
Procurement is a key SCM function.
4. The procurement cycle starts with:
,A. Payment
B. Identifying need
C. Delivery
D. Storage
Answer: B
Procurement begins when a need is identified.
5. A purchase requisition is:
A. Payment request
B. Internal request to buy goods/services
C. Delivery note
D. Invoice
Answer: B
It is a formal request to procure.
6. A purchase order (PO) is:
A. Internal memo
B. Legal document sent to supplier
C. Invoice
D. HR document
Answer: B
It authorizes purchase from supplier.
7. Supplier selection is based on:
A. Random choice
B. Price, quality, and reliability
C. Color
D. Location only
Answer: B
Selection is based on performance criteria.
8. Procurement strategy refers to:
, A. Cooking plan
B. Plan for sourcing goods and services
C. HR plan
D. Marketing plan
Answer: B
It defines sourcing approach.
9. Tendering is:
A. Cooking method
B. Competitive bidding process
C. Hiring process
D. Training process
Answer: B
Suppliers compete through bids.
10. Open tendering means:
A. Secret buying
B. Public invitation for bids
C. Direct purchase
D. Internal transfer
Answer: B
It is open to all suppliers.
11. Closed tendering involves:
A. Public bidding
B. Selected suppliers invited
C. No suppliers
D. Random selection
Answer: B
Only invited suppliers participate.
12. Single sourcing means:
QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION GRADED A+ STUDY GUIDE SOUTHERN
NEW HAMPSHIRE UNIVERSITY
1. Procurement management refers to:
A. Selling goods
B. Acquiring goods and services from external sources
C. Cooking operations
D. Employee hiring only
Answer: B
Procurement involves purchasing goods/services needed by an organization.
2. The main goal of procurement is to:
A. Increase cost
B. Obtain quality goods at best value
C. Delay delivery
D. Reduce suppliers only
Answer: B
It ensures value for money in purchasing.
3. Procurement is part of:
A. HRM
B. Supply chain management
C. Marketing only
D. Accounting only
Answer: B
Procurement is a key SCM function.
4. The procurement cycle starts with:
,A. Payment
B. Identifying need
C. Delivery
D. Storage
Answer: B
Procurement begins when a need is identified.
5. A purchase requisition is:
A. Payment request
B. Internal request to buy goods/services
C. Delivery note
D. Invoice
Answer: B
It is a formal request to procure.
6. A purchase order (PO) is:
A. Internal memo
B. Legal document sent to supplier
C. Invoice
D. HR document
Answer: B
It authorizes purchase from supplier.
7. Supplier selection is based on:
A. Random choice
B. Price, quality, and reliability
C. Color
D. Location only
Answer: B
Selection is based on performance criteria.
8. Procurement strategy refers to:
, A. Cooking plan
B. Plan for sourcing goods and services
C. HR plan
D. Marketing plan
Answer: B
It defines sourcing approach.
9. Tendering is:
A. Cooking method
B. Competitive bidding process
C. Hiring process
D. Training process
Answer: B
Suppliers compete through bids.
10. Open tendering means:
A. Secret buying
B. Public invitation for bids
C. Direct purchase
D. Internal transfer
Answer: B
It is open to all suppliers.
11. Closed tendering involves:
A. Public bidding
B. Selected suppliers invited
C. No suppliers
D. Random selection
Answer: B
Only invited suppliers participate.
12. Single sourcing means:
