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CIPS Procurement and Supply in Practice Sample Questions (Q42-Q47):

NEW QUESTION # 42
What is needed for a contract to be binding? Answer: ** Explanation:
A contract is written or verbal agreement, made between two or more parties that is legally enforceable.
For a contract to be legally binding it must include intention of parties entering into the contracts.
All parties must have the capacity to contract or be contracted.
They must be of a sound mind, there should be a promise (offer) for performance from the other party and an exchange (consideration) of one thing for another within an agreement for contract to be binding, and there must be an acceptance of the offeror's offer by the offeree.
NEW QUESTION # 43**
Which Incoterm applies here?
The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination. As soon as the goods are on the vessel, the risk transfers to the buyer

• A. CIF - Cost Insurance and Freight
• B. FAS - Free Alongside Ship
• C. FOB - Free On Board
• D. DAP - Cost and Freight

Answer: C
NEW QUESTION # 44
What advantages could there be to holding excessive inventory? Answer: ** Explanation:
Holding excessive inventory can reduce the impact of extended lead time. i.e. by saving the buying organization from downtime, reputation loss, and also it can generate revenue for the organization if there is a sudden increase in demand.
NEW QUESTION # 45**
Research the values and ethical code of practice of an organization with which you are familiar. Answer: ** Explanation:
Fullpower projects is a training firm that trains on project management and procurement. It has the following values and ethical code of practice
1) Accountability
2) selflessness
3) openness
4) integrity
5) objectives
6) Honesty
7) Leadership
NEW QUESTION # 46**
Think of a supply chain with which you are familiar and distinguish between the primary, second-ary and tertiary sector organization within it. Answer: ** Explanation:
Supply chain involves a network of individuals, organizations, technology activities and resources to make sure goods or services flow along the chain. If one point fails, every part further along the chain fails.
Fullpower projects (a flour manufacturer) supply chain begins with producers (raw materials, wheat farmers), suppliers, manufactures, distributors, retailers and end users (customer).
Fullpower projects supply chain falls within the primary sector (producers of wheat), the secondary sector include the manufacturing (those that converts the wheat the suppliers brings into flour) and tertiary sector (the distributor those that takes the wheat to the end users).
NEW QUESTION # 47
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