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