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L4M2 Exam Dumps : Defining Business Needs

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Defining Business Needs Questions and Answers

Question 1

Which of the following describes a purpose of financial modelling in procurement?

Options:

A.

It helps procurement professionals forecast budgets, profitability ratios and returns on investments that may exist

B.

It allows an organisation to better understand the suppliers within the market

C.

It can help determine the most appropriate route to market for a set of requirements

D.

It helps organisations to agree on the correct contractual terms and conditions with a supplier

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Question 2

A market has many buyers and suppliers. Loyalty is low and switching is common. Which market characteristic supports this behaviour?

Options:

A.

Supplier bargaining strength

B.

Increasing use of technology

C.

The availability of substitute products

D.

Barriers to market entry

Question 3

OMK is a Russian steel firm that is expanding market abroad. It plans to build a steel plant in a foreign country. Due to intricate technical requirements, the plant design will be very complex. Procurement department or technical department alone cannot draft the specification. OMK senior management decides that this task must be treated as a project. Which of the following should be done before writing the specification for new steel plant?

Options:

A.

Develop the performance framework for the supplier

B.

Draft the terms and conditions for plant construction contract

C.

Invite suppliers to the tendering process

D.

Develop project initial document