Free CIPS L3M1 Practice Exam with Questions & Answers | Set: 2

Explanation

All answers are correct. Each of these areas can create safety hazards for people in the workplace, and so in many countries government legislation has been passed to make these topics subject to regulation.

For example, within the UK, it is mandatory for employers to provide compulsory training for em-ployees who may be involved in lifting heavy items, and there are limits placed on the weight which can be handled by any one person. In many cases, mechanised lifting equipment is used to aid or replace humans.

Explanation

A monopoly is a single supplier (or for some authorities where one supplier has control of the market eg 75% market share); a monopsony is a single buyer.

Perfect competition involves many suppliers and many buyers.

The clue here is the 'small number' of suppliers.

Explanation

The answer is uncertainty avoidance. Even if you have never heard of Hofstede, you can select the correct answer based on the explanation given in the QUESTION NO:.

Although the word 'culture' does not appear in the syllabus, much of Learning Outcome 3.0 can be seen as referring to culture. Some understanding of culture, both organisational culture and national culture is essential to human interactions in the procurement and supply environment. Check out Geert Hofstede's website to learn more about his work.

Explanation

It is an economy in which the public and private sectors work together. This is now the norm in most countries, with private sector involvement to a greater or lesser extent. In North Korea there is a (rare example of a) planned economy, and in the United States there is a heavily market-led (pri-vate sector) economy.

Explanation

Increasingly practised, albeit often quietly, protectionism seeks to protect domestic industries, re-ducing access to markets for foreign companies. The aim is normally to protect domestic worker's jobs, often with an eye on domestic politics. Industries recently (late 2020) mentioned in this subject area include agriculture, airlines, defence, shipbuilding, steel, etc - not just in UK or Europe, but worldwide.

The World Trade Organisation seeks to reduce protectionism - an activity supported by many econ-omists, as globalism is believed by many to increase global wealth overall.

However, this is not clear cut, and there are a variety of views.

Interventionism is not relevant to this QUESTION NO:, and preventionism is a made-up word.

Explanation

Competitive rivalry within an industry.

This can be quite an important point, and why I have such a dislike of the less formal title for the model - the model is about entire industries, not just about a single firm - this is commonly misun-derstood by students (and sadly, some tutors) - and the original Porter title - 'Industry Structure Analysis' - helps us understand that, I think. I find this tool of analysis to be very helpful in under-standing behaviour within sectors, despite criticism of the model and its age from some commenta-tors

The other answers shown are mere fictions.

Explanation

All of these.

Explanation

It's 'delegated authority' - where the authority to spend has been delegated to others, at a 'lower lev-el' in the organisation.

Normally organisational finance or procurement policies will explain how this is to work, often with a written delegation provided by a more senior manager. The authority to spend is invariably a tem-porary permission, which may be withdrawn under certain circumstances eg breach of rules, exces-sive spend, maverick spend, etc.

Explanation

This a definition of liquidated damages. Calculated in advance of the event occurring ie pre-contract and thus agreed by the parties in advance. Meaningful advance calculations (estimates) must be available to enforce legally.

The term and the spirit of 'penalty clause' is discouraged in English law - damages should be aimed at returning the damaged party back into the position they would have been in, had a wrong not been done.

Unliquidated damages can only be awarded by a court after the event, and should not be relied up-on.

An example of a quantum meruit award can be found in the British Steel v Cleveland Bridge (1984) case - a rare occurrence, and again something which must not be relied upon.

Explanation

Social arrangement because it involves people; they have a collective goal eg to be a profitable or-ganisation; and their performance must be controlled to work towards or to achieve that goal / those goals.