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NEW QUESTION 34
Mandy is looking to source windows and doors for a new build apartment block. She has done some initial research and has discovered that there are many suppliers in the marketplace that can supply the items she needs. As it is a high-value project she is thinking of running a formal tender. What should be Mandy's first step?

  • A. Run an open competition - send out an ITT
  • B. Run a restricted competition - send out a PQQ
  • C. Run a restricted competition- send out a RFI
  • D. Run an open competition - send out a RFQ

Answer: B

Explanation:
The correct answer is 'run a restricted competition - send out a PQQ'. This Question: tests both your understanding of when to run open and restricted competitions (which is explained on p.75) and your understanding of tender documents. Mandy should run a restricted competition- there are a lot of options in the marketplace and this will allow her to pre-qualify those who best suit her requirements. Running an open competition when there are lots of suppliers would be too time-consuming- you need a way of making a short-list. When you run a restricted competition, the first stage is sending out a PQQ- pre-qualification questionnaire; this document is sent to suppliers asking for necessary information to support their qualification as an approved supplier.

 

NEW QUESTION 35
The Pareto Principle is sometimes also known as what?

  • A. ABC Analysis
  • B. JIT
  • C. Five Forces
  • D. Cost Engineering

Answer: A

Explanation:
Pareto is the 80:20 rule- this can be adapted to talk about supplier relationships, where instead of having 2 categories there are now 3 (A B and C). CIPS use the terms Pareto and ABC interchangeably. See p.16 for further information

 

NEW QUESTION 36
Value for money in the private sector is concerned with what?

  • A. Ensuring taxpayers' money is spent wisely
  • B. Shareholder profit and business benefit
  • C. Getting the best quality possible
  • D. Getting the best price possible

Answer: B

Explanation:
Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers' money is spent wisely. Value for money is a mixture of price and quality.

 

NEW QUESTION 37
Intellectual Property Rights (IPR) include items such as copywrite and trademarks. A buyer is considering entering into a partnership with their supplier to create a new product which will be released in two years' time. Should IPR be included into a contract between partners?

  • A. No- a contract is not necessary if it is a partnership.
  • B. Yes- IPR should always remain with the buyer- this will protect those rights
  • C. Yes- IPR is a valid concern for both parties but will survive the termination of the agreement
  • D. No- a separate legal agreement should be created to cover IPR

Answer: C

Explanation:
The correct answer is 'Yes- IPR is a valid concern for both parties but will survive the termination of the agreement' (p.112). See the section on 'Legal considerations' in chapter 2.4

 

NEW QUESTION 38
Which of the following are not stages of team development? Select TWO.

  • A. Accepting
  • B. Adjourning
  • C. Achieving
  • D. Forming
  • E. Mourning

Answer: A,C

Explanation:
This question is very, very similar to a real exam Question: and is
a really mean one. The CIPS study guide describes stages of team development as forming, storming, norming and performing. Of those listed in the book only forming is listed above. What the textbook fails to tell you is that some people add on two additional stages to this model which are mourning and adjourning. I strongly recommend doing some further reading on this (it's called the Tuckman Group Development Model) as it comes up a lot in the exam and the study guide doesn't really go into enough detail.

 

NEW QUESTION 39
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