123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263646566676869707172737475767778798081828384858687888990919293949596979899100 PROCUREMENT MANAGEMENT EXAMINATION You are welcome to Lakewood Business School Examination Portal We are delighted to have you here and wish you the very best as you embark on an exciting journey toward a rewarding career with us. Online Examinations Our online assessments are designed to evaluate your understanding of the training materials and ensure your readiness for the next step in your professional development. Here's what you need to know: Format: The assessment consists of 100 multiple-choice questions. Pass Mark: A minimum score of 50% is required to pass. Instant Results: Your answers will be automatically graded, allowing you to immediately see your results. Retake Option: If you don’t pass on your first attempt, don’t worry! You can retake the exam and try again. Need Assistance? Whether you are currently enrolled on our platform or seeking information, our dedicated support team is here to help. Feel free to reach out to us with any inquiries at admission@lwbschool.org.uk Thank you for choosing Lakewood Business School. We are committed to supporting your growth and success. 1 / 100 1. “Value for Money” in procurement balances: B) Cost, quality, and effectiveness D) Invoice date C) Price only A) Location, style, delivery 2 / 100 2. What is dual sourcing? C. Buying through foreign agents B. Selecting two suppliers to mitigate risk D. Import substitution A. Paying two suppliers together 3 / 100 3. What should be used to align invoices, delivery notes, and POs? B. Spend analysis tool C. Invoice matching A. KPI tracker D. Payment reconciliation 4 / 100 4. A performance-based contract links payment to: C) Achievement of agreed results A) Contract length B) Supplier experience D) Delivery time only 5 / 100 5. Procurement audits are conducted to: D. Review tax policies A. Fire employees C. Ensure procurement policy compliance and performance B. Identify legal irregularities 6 / 100 6. What is procurement risk mitigation? A. Delaying payments C. Identifying and preparing for sourcing uncertainties D. Ignoring supply changes B. Eliminating competition 7 / 100 7. Poor requirement definition can result in scope creep. True False 8 / 100 8. ERP systems support procurement by: B. Offering integrated order management A. Only HR functions D. Negotiating on behalf of users C. Handling contract disputes 9 / 100 9. What is a key indicator of supplier performance? D) Budget report A) Number of employees B) Delivery lead time C) Company logo 10 / 100 10. What is a benefit of strategic sourcing? A. Random supplier selection B. Short-term price wins only D. Avoiding documentation C. Long-term value creation 11 / 100 11. Which of these is a benefit of e-procurement systems? A. Manual data entry C. Decreased supplier diversity D. Increased visibility and speed B. Higher transaction time 12 / 100 12. What is the difference between RFQ and RFP? C) RFQ is for simple goods; RFP for complex services D) RFP has no legal use A) RFQ is for services only B) RFP focuses on lowest price 13 / 100 13. Category management involves: D. Outsourcing procurement tasks C. Negotiating supplier incentives A. Managing only large contracts B. Grouping similar goods for strategic sourcing 14 / 100 14. Stakeholder communication should be: B. Ongoing and structured C. Ad hoc D. Avoided during bidding A. Informal and infrequent 15 / 100 15. What is “lead time” in procurement? A) Time required for contract negotiation B) Delivery time from purchase request to supplier response D) Bidding time frame C) Total time from order to delivery 16 / 100 16. What does ISO 20400 relate to? C. Logistics automation B. Risk tolerance D. Sustainable procurement A. Health regulations 17 / 100 17. The main output of a procurement strategy is: A. Marketing plan B. Supplier expense report D. Tax report C. Sourcing framework and goals 18 / 100 18. A blanket purchase order is used when: A) One-time, large-value items are needed B) Contracts must be renegotiated D) No specifications exist C) There are recurring, frequent purchases 19 / 100 19. A well-defined set of requirements helps: D. Delay supplier onboarding B. Procure unnecessary items A. Reduce communication C. Avoid scope creep and misunderstandings 20 / 100 20. Supplier prequalification ensures: B. Technical compliance and financial capacity C. Barcode scanning D. Legal firm audit A. Product labeling 21 / 100 21. The final procurement stage involves contract signing. True False 22 / 100 22. What is the main goal of contract negotiation? C. Reach agreement on terms, cost, and scope A. Maximize payment delays D. Confirm supplier advertising B. Discuss internal staff policy 23 / 100 23. What does “three-way matching” in procurement involve? C) Supplier rating, feedback, risk A) Budget, invoice, payment B) Purchase order, invoice, delivery note D) Buyer, seller, customer 24 / 100 24. Which document initiates the formal bid process? A. Invoice C. RFP D. SLA B. Scope Statement 25 / 100 25. In procurement, incoterms define: B) Supplier discounts A) Quality benchmarks C) Responsibilities and risks in shipping D) Employee evaluations 26 / 100 26. Which contract type includes incentives for performance? D. CR B. FPIF C. T&M A. FFP 27 / 100 27. What is procurement risk management focused on? B) Identifying, analyzing, and mitigating risks in sourcing A) Creating financial forecasts C) Writing purchase orders D) Rewriting contracts 28 / 100 28. RFQs are suitable for highly complex technical projects. True False 29 / 100 29. Which procurement method is suitable for high-value, complex purchases? A) Direct shopping D) Local purchase B) Request for Quotation (RFQ) C) International Competitive Bidding (ICB) 30 / 100 30. A contract addendum is used to: C) Officially modify original contract terms D) Block payment A) Terminate contracts B) File purchase orders 31 / 100 31. What is the advantage of framework agreements? C) Long-term procurement relationships A) Frequent re-tendering B) One-time supplier use D) Emergency buying only 32 / 100 32. What is a major pitfall in procurement planning? B. Clear cost analysis C. Using outdated market data A. Over-defining requirements D. Stakeholder collaboration 33 / 100 33. Procurement governance ensures: C. Fast hiring B. Regulatory compliance and role clarity A. High marketing reach D. Product design 34 / 100 34. Forward buying involves: B. Purchasing goods in anticipation of price increase or scarcity D. Selling supplier data A. Ignoring market trends C. Bulk buying during discounts only 35 / 100 35. Sustainability and CSR are now considered optional in procurement. True False 36 / 100 36. Which procurement metric indicates timely supplier deliveries? A. Supplier Scorecard Index D. Invoice Compliance C. Return Rate B. On-Time Delivery (OTD) 37 / 100 37. What is a procurement plan? A) List of suppliers B) List of contract clauses C) Strategy outlining what, how, and when to procure D) Inventory checklist 38 / 100 38. Procurement cycle begins with: A. Invoice verification B. Product shipping C. Needs identification D. Financial closure 39 / 100 39. Maverick buying refers to: A. Large-scale competitive bidding B. Buying outside approved procurement channels D. Buying in groups C. Regional supplier sourcing 40 / 100 40. The most effective way to ensure compliance in procurement is: A. Verbal agreement C. Following SOPs and procurement policy D. Delegating to finance B. Avoiding documentation 41 / 100 41. Sustainability KPIs may include: C. Carbon footprint reduction D. Delivery lead times B. Invoice accuracy A. Supplier payment cycles 42 / 100 42. Total cost of ownership (TCO) considers: A. Price only C. All costs from purchase through use and disposal D. Exchange rate changes only B. Quantity discounts 43 / 100 43. Which procurement document invites potential suppliers to submit technical and financial proposals? D) Invoice B) RFP A) RFQ C) PO 44 / 100 44. Supplier development focuses on: D. Blocking new vendors B. Avoiding communication A. Firing poor suppliers C. Improving supplier capabilities 45 / 100 45. What is the core purpose of procurement planning? B. Identify potential contract conflicts A. Avoid budget controls D. Select the cheapest vendor C. Ensure timely sourcing and delivery aligned with organizational needs 46 / 100 46. What does SRM stand for? D. Sustainability Review Matrix B. Strategic Resource Mapping A. Supplier Rating Mechanism C. Supplier Relationship Management 47 / 100 47. Contract management ensures: A) Staff reshuffling D) Staff evaluation C) Supplier delivery, performance tracking, and compliance B) Project branding 48 / 100 48. Purchase orders should always: B. Be verbal A. Be signed by HR D. Skip approval C. Reflect negotiated terms 49 / 100 49. A procurement audit is conducted to: C) Review procurement process compliance D) Train suppliers A) Rate customers B) Market goods 50 / 100 50. A key benefit of e-procurement is: C) Improved transparency and efficiency D) Increased supplier bias B) Manual invoice processing A) More paperwork 51 / 100 51. Which tool is commonly used for supplier market analysis? A. SWOT C. PEST D. ERP B. RFP 52 / 100 52. What is the primary goal of risk registers? B. Store procurement plans C. Document and monitor risks D. Replace budgeting tools A. Track invoices 53 / 100 53. What is the purpose of a service level agreement (SLA)? C. Specify service expectations and penalties D. Track customs B. Regulate supplier warehouse layout A. Define inventory levels 54 / 100 54. A key characteristic of a cost-reimbursable contract is: C. Set pricing B. Buyer covers actual costs plus a fee D. Fixed completion timeline A. Supplier takes on all financial risk 55 / 100 55. The bid evaluation process is used to: A. Issue invoices C. Assess supplier proposals against defined criteria D. Manage project scheduling B. Qualify HR suppliers 56 / 100 56. A centralized procurement model improves: B. Contract fragmentation D. Maverick spend A. Duplication C. Control and standardization 57 / 100 57. What is the first step in the procurement process? A) Bid evaluation C) Need identification and specification D) Contract signing B) Supplier payment 58 / 100 58. Stakeholder engagement in procurement helps: B. Avoid compliance A. Cause delays D. Improve alignment and accountability C. Reduce buy-in 59 / 100 59. What is sustainable procurement? B) Selecting green-certified suppliers C) Considering environmental, social, and economic impacts D) Avoiding contracts with fines A) Eco-friendly contract design 60 / 100 60. Competitive bidding helps ensure: C) Fair pricing and transparency B) Longer delivery times D) Rejected contracts A) More paperwork 61 / 100 61. TCO includes only the purchase price of goods. False True 62 / 100 62. Procurement is strictly an operational function, not strategic. True False 63 / 100 63. Reverse auction is a process where: A) Buyers compete to supply vendors B) Suppliers compete by lowering prices D) The customer sets prices C) Delivery tracking is reversed 64 / 100 64. Which of the following contracts involves the supplier bearing cost risks? B. Fixed-Price C. Time and Materials A. Cost-Reimbursable D. Incentive-based 65 / 100 65. Vendor prequalification is done to: C) Screen suppliers based on criteria ✔️ D) Increase paperwork B) Register only local vendors A) Disqualify bidders 66 / 100 66. The term “procurement ethics” includes: D) Using unregistered vendors C) Fairness, integrity, and accountability A) Favoring suppliers B) Avoiding documentation 67 / 100 67. In e-procurement, what is an advantage of online bidding? D. Fixed supplier base B. Real-time competition and efficiency C. More paper usage A. Less transparency 68 / 100 68. What is “procurement fraud”? C) Supplier discounting B) Any dishonest act in procurement process A) Extra discount from vendor D) Inventory mismanagement 69 / 100 69. Sole sourcing is appropriate when: A) There is no urgency C) Only one supplier is capable or available D) Price is highly flexible B) There are multiple vendors 70 / 100 70. What causes scope creep? B. Formal change orders A. Clear requirements D. SLA documentation C. Vague or incomplete specifications 71 / 100 71. What does “three-way matching” involve? D. Matching payment terms and tax C. Matching salary, price, and discount B. Matching invoice, purchase order, and delivery note A. Matching order, HR, and supplier 72 / 100 72. Procurement cycle ends with: C) Contract close-out and payment B) Evaluation committee A) Bid opening D) Supplier rating 73 / 100 73. Sustainable procurement focuses on: A. Only cost reduction B. Fast contract closing C. Environmental, ethical, and social responsibility D. Avoiding regulations 74 / 100 74. Which procurement document is legally binding? B. Purchase order accepted by the supplier D. RFQ draft A. Requisition form C. Supplier email 75 / 100 75. What is the first step in the procurement process? B. Risk assessment C. Planning and need identification A. Contract closeout D. Supplier performance evaluation 76 / 100 76. An RFQ is best used when: A. Technical specs are unknown B. Long-term partnerships are needed C. Price is the main differentiator D. Strategic alignment is key 77 / 100 77. Procurement policies exist to: C) Avoid evaluation D) Reward favoritism B) Define standard procedures and reduce abuse A) Reduce compliance 78 / 100 78. What is the main purpose of a supplier audit? D. Analyze internal HR C. Validate performance and compliance A. Delay the procurement cycle B. Confirm marketing strategies 79 / 100 79. Supplier scorecards typically track: B. Brand perception A. Employee satisfaction C. KPIs such as delivery, cost, and quality D. Tax payments 80 / 100 80. One of the key risks in procurement is: C. Maverick spend B. Market saturation D. Process optimization A. Overcommunication 81 / 100 81. Spot buying is used for: A) Scheduled purchases C) One-time or emergency needs D) Long-term planning B) Bulk deals 82 / 100 82. Supplier diversity can foster innovation and stronger community ties. True False 83 / 100 83. What is a blanket purchase agreement? A. Contract for a one-time large order D. HR onboarding form C. Credit memo document B. Long-term agreement for repetitive purchases 84 / 100 84. What is the main objective of contract negotiation? D) Favor buyers B) Remove competition C) Reach mutually acceptable terms A) Increase prices 85 / 100 85. A key principle of contract management is: C. Ignoring SLAs A. Monitoring performance continuously D. Limiting communication B. Relying on verbal agreements 86 / 100 86. Procurement compliance helps organizations: D. Delay audits C. Reduce fraud, ensure value-for-money A. Encourage random purchases B. Ignore policy 87 / 100 87. What is a purchase requisition? A) Legal notice C) Supplier invoice D) Order confirmation B) Request sent to initiate a procurement 88 / 100 88. Risk management is a one-time task in procurement. False True 89 / 100 89. A key role of the procurement manager is to: D. Organize board meetings C. Lead warehouse audits A. Set sustainability goals B. Manage supplier relationships 90 / 100 90. The primary purpose of a Request for Quotation (RFQ) is to: B. Negotiate contracts A. Solicit price quotes for clearly defined goods/services D. Analyze financial reports C. Evaluate supplier innovation 91 / 100 91. What is BATNA in procurement? C. Backup IT platform D. Benchmarking template A. A pricing clause B. Best Alternative to a Negotiated Agreement 92 / 100 92. In vendor rating, which factor is typically considered? D. Social media activity A. Supplier nationality B. CEO profile C. Quality and delivery performance 93 / 100 93. Which of the following is a source of procurement data? B. Purchase orders D. Press releases A. Expense reports C. Customer surveys 94 / 100 94. A supplier scorecard includes metrics like cost, delivery, and quality. False True 95 / 100 95. E-procurement platforms enhance process speed and data accuracy False True 96 / 100 96. Which of the following best describes procurement? C. Strategic acquisition of goods, services, or works from external sources B. Managing logistics and inventory D. Overseeing only warehousing A. Buying goods without strategic planning 97 / 100 97. One main function of the Chief Procurement Officer is: B. Approving low-level purchases A. Conducting packaging tests D. Managing daily inventory C. Aligning procurement with strategic goals 98 / 100 98. A performance indicator focused on rejected deliveries is: C. Invoice Error Rate A. Quality Defect Rate B. Cost Variance D. Service Uptime 99 / 100 99. The acronym TCO stands for: B. Turnaround Cost Overview A. Total Cost of Optimization D. Tactical Compliance Order C. Total Cost of Ownership 100 / 100 100. Force majeure clauses are included to: D. Replace payment terms C. Ensure unlimited liability B. Define automatic renewals A. Address unforeseen events Your score is 0% Restart quiz By Wordpress Quiz plugin
