CIPS Level 3 – Advanced Certificate in
Procurement and Supply Operations
Module 1 - Procurement and Supply
Environments
SAMPLE EXAM QUESTIONS
OBJECTIVE RESPONSE QUESTIONS AND ANSWERS
The correct answer will be identified as [key]
1
Leading global excellence in procurement and supply
L3M1 Exam Exemplar Questions Sep 2018
Q1. Which of the below is a public sector organisation?
a. A country’s military forces [key]
b. A major charity
c. A manufacturer of buses
d. A food processor
LO: 1
AC: 1.3
Q2. A public sector organisation obtains its funds from …
a. direct and indirect taxes [key]
b. money invested by shareholders
c. donations made by the public
d. sales in overseas markets
LO: 1
AC: 1.1
Q3. Drag and drop the correct option into the blank space.
A key characteristic of a third sector organisation is that
profits from operations are distributed to shareholders, service satisfaction is not measured in financial
terms[key], shares in the organisation are traded on a stock market, its operations are based on efficient
manufacturing
LO: 1
AC: 1.4
2
L3M1 Exam Sample Questions Sep 2018
Q4. Drag and drop the correct option into the blank space
is the price at which the level of supply in a market matches the level of demand.
Best price, Value added price, Equilibrium price [key], Minimum price
LO: 3
AC: 3.1
Q5. A PEST analysis is conducted on which of the following organisational environments?
a. Macro [key]
b. Internal
c. External
d. Historic
LO: 3
AC: 3.1
Q6. A key stage in the product life cycle is termed …
a. profitability
b. maturity [key]
c. regeneration
d. abandonment
LO: 3
AC: 3.1
Q7. Drag and drop the correct option into the blank space.
A successful health and safety policy results in for the organisation.
Improved stock management, Improved cash flow, Improved staff attendance [key], Improved
warehouse capacity.
LO: 3
3
L3M1 Exam Sample Questions Sep 2018
AC: 3.3
Q8. An organisation’s equal opportunities policy will concern itself with …
a. age discrimination [key]
b. opportunity costs
c. globalisation of supply
d. the balanced score card
LO: 3
AC: 3.3
Q9. Drag and drop the correct option into the blank space.
STEEPLED analysis concerns itself with …
Social, Technical, Economic, Environmental, Political, Legal, Ethical and factors
Deadly, Demographic [Key], Dangerous, Diverse
LO: 3
AC: 3.1
Q10. A specification document may include a …
a. technical drawing [key]
b. bill of sale
c. invoice
d. quotation of price
LO: 4
AC: 4.1
4
L3M1 Exam Sample Questions Sep 2018