EMT Practice Test

1. Question Content...

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Question1: Amnesty International, Oxfam and CIPS are examples of what type of organisation?

Question2: What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

Question3: Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE

Question4: When would a procurement professional use the Pareto principle?

Question5: Which of the following is a UK legislation concerning product safety?

Question6: Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.

Question7: Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?

Question8: Which of the following would you expect to find in an Invitation to Tender? Select THREE

Question9: Which of the following are signs that modern-day slavery might be taking place within the supply chain?
Select THREE.

Question10: Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.

Question11: What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

Question12: Polygon Incorporated is a new company in the mining industry, which often gets bad press due to issues of sustainability. Which of the following should Polygon Incorporated consider when developing sustainable business practices?

Question13: Damian is a procurement professional in the Public Sector. He has recently run a competition to source new uniforms for hospital staff and has decided on a suitable supplier. Should Damian con-duct post tender negotiation with the supplier?

Question14: A company's balance sheet will show you which of the following?

Question15: Which of the incoterms listed are suitable for transporting goods via train?

Question16: Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?

Question17: When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit. Which of the following could these be? Select TWO

Question18: Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities

Question19: A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asksQuestionsrelating to how they will deliver the service and gives a deadline for bids to be submitted. Which document have the suppliers ben sent?

Question20: A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?

Question21: Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?

Question22: In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?

Question23: Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?

Question24: Which of the following incoterms has the lowest risk to the buyer?

Question25: Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable. Which of the following should Dylan look for in terms of quality management when appraising the suppliers?

Question26: A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?

Question27: Philip is a procurement manager at XYZ Company which imports raw materials from abroad. Sup-pliers provide quotes to Philip in their local currency. Is this the best way to reduce the risk to XYZ Company of currency fluctuations?

Question28: Why would you use a credit score to appraise a supplier?

Question29: If a company is described as 'liquid' what does this mean?

Question30: Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?

Question31: Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know to calculate shareholder equity?
Select TWO.

Question32: During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?

Question33: Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?

Question34: Which of the following are primary sources of data? Select TWO.

Question35: For what type of purchase would you use a Futures Exchange?

Question36: Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?

Question37: A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?

Question38: Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

Question39: Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down his supplier base and purchase from one supplier.
Which type of sourcing arrangement has Ramesh began?

Question40: Which of the following Incoterms has the lowest risk for the supplier?

Question41: The gross profit of a company can be calculated by using a simple formula. What is this?

Question42: Which of the following are examples of secondary data? Select TWO

Question43: Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally.
Which of the following is described by Incoterms? Select THREE.

Question44: Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?

Question45: What type of relationship should a buyer seek when making strategic sourcing for their business?

Question46: Which of the following items would you expect to find on a balance sheet? Select THREE

Question47: An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender.
Which of the following should be considered?

Question48: What is the best way to prevent potential issues of conflicts of interest?

Question49: Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.
What relationship style would be best suited?

Question50: Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?

Question51: Which of the following is not a indices that measures economic data?

Question52: Which of the following payment mechanisms is most beneficial to the supplier?

Question53: According to the CIPS code of conduct, which laws should a procurement professional adhere to?