CIPS -Level 3 Module 2 AND 3. Exam Questions
With 100% Verified Correct Answers.
Service Level Agreement (SLA)
An agreement between a supplier and a buyer based on quality, delivery, availability and other
measuresvle criteria
For a contract to exist, what 5 things are necessary?
Offer
acceptance
consideration
intention to legally bound
capacity
What is a panel agreement?
It is a framework agreement with more than one supplier
What is a call off?
The order placed under a term contract or the contract created under a framework agreement
What are express terms?
Contractual terms that are agreed between two parties and written into a contract
What are implied terms?
Contractual terms that exist even if they are not stated in the contract
What is linear pricing?
The unit price doesn't change according to the purchased quantity
What is collusion?
Where two or more potential suppliers (or the purchaser) secretly cooperate to undermine the
competitiveness of the tender process
, What are the four stages of developing a business case?
Understand your own organisation
Understand the market
Options appraisal
Make recommendation
What does tangible mean?
Something you can physically touch or see
What is a loss leader pricing strategy?
A product or service delivered at a price that makes a loss for the supplier in the hope of future
gains
What is distributive negotiation?
Any gain to one party is offset by an equivalent loss to the other party
What is collaborative negotiation?
When both parties achieve their goals in full (win-win)
What does BATNA stand for?
Best alternative to a negotiated agreement
What does ZOPA stand for?
Zone of Potential Agreement
What is margin?
Profit as a percentage of sales
What are the six rights of procurement?
Quality
Quantity
Place
Time
With 100% Verified Correct Answers.
Service Level Agreement (SLA)
An agreement between a supplier and a buyer based on quality, delivery, availability and other
measuresvle criteria
For a contract to exist, what 5 things are necessary?
Offer
acceptance
consideration
intention to legally bound
capacity
What is a panel agreement?
It is a framework agreement with more than one supplier
What is a call off?
The order placed under a term contract or the contract created under a framework agreement
What are express terms?
Contractual terms that are agreed between two parties and written into a contract
What are implied terms?
Contractual terms that exist even if they are not stated in the contract
What is linear pricing?
The unit price doesn't change according to the purchased quantity
What is collusion?
Where two or more potential suppliers (or the purchaser) secretly cooperate to undermine the
competitiveness of the tender process
, What are the four stages of developing a business case?
Understand your own organisation
Understand the market
Options appraisal
Make recommendation
What does tangible mean?
Something you can physically touch or see
What is a loss leader pricing strategy?
A product or service delivered at a price that makes a loss for the supplier in the hope of future
gains
What is distributive negotiation?
Any gain to one party is offset by an equivalent loss to the other party
What is collaborative negotiation?
When both parties achieve their goals in full (win-win)
What does BATNA stand for?
Best alternative to a negotiated agreement
What does ZOPA stand for?
Zone of Potential Agreement
What is margin?
Profit as a percentage of sales
What are the six rights of procurement?
Quality
Quantity
Place
Time
