EOL C1 & C3

Which of the following best illustrates the “Right Source” in purchasing?

• Procuring materials at a discounted rate

• Ordering goods just in time for production

• Selecting a supplier known for ethical practices and long-term reliability

• Ensuring the goods meet ISO 9001 standards

What is a major drawback of using Petty Cash in modern purchasing operations?

• It encourages excessive documentation.

• It reduces employee autonomy.

• It is prone to misuse and theft.

• It delays procurement of critical goods.

Which of the following combinations correctly represents the “5 Rights” of purchasing?

• Right Price, Right Source, Right Contract, Right System, Right Inventory

• Right Supplier, Right Value, Right Delivery, Right Stock, Right Deal

• Right Quality, Right Quantity, Right Time, Right Price, Right Source

• Right Warranty, Right Budget, Right Location, Right Partner, Right Service

In the Procure-to-Pay (P2P) process, which step ensures that the invoice amount matches the ordered and received quantity?

• Goods Receipt

• Invoice Verification

• Purchase Order Creation

• Vendor Selection

Which of the following is NOT a common goal of category management in purchasing?

• Grouping procurement spend for better control

• Increasing procurement complexity

• Enhancing supplier relationships

• Reducing risks and increasing revenue

Which of the following is NOT a reason companies choose to outsource?

• To focus on core activities

• To increase fixed costs

• To reduce costs

• To increase speed to market

Which company was given as an example for Human Resource outsourcing?

• DHL

• IBM

• ADP

• GEP

In outsourcing, supplier selection and contract development should include:

• Only pricing details

• A list of internal HR policies

• Clearly defined scope of work and flexibility clauses

• Penalties for employee misconduct

Which of the following is a critical success factor in outsourcing?

• Assuming a single vendor is always sufficient

• Vague performance measures

• Conducting detailed risk assessments

• Avoiding contingency planning

Which is a core difference between 'position' and 'interest' in negotiation?

• Interests are negotiable, positions are not

• Interests are the final goal, positions are feelings

• Positions are the “what,” interests are the “why”

• Positions always win in integrative negotiations