CIPS L3M1 Questions Answers

Explanation

An easy question.

Price is what the customer will pay for goods or services eg fifty dollars; payment terms are the ar-rangements under which you pay the price eg in advance, on delivery, 30 days, 60 days, etc.

Although this may seem rather obvious, I have encountered a surprising number of people who seem to confuse the two.

Explanation

This is true. In my view, 'Industry Structure Analysis' is a better term, not only because that is what Michael Porter originally called it, but because it better describes what the model is about. For ex-ample, it reminds us that the model is not about a single firm, but it is about an entire industry, and the structure around that industry.

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.