A type of payment where goods are delivered before payment is made
B.
A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
C.
When a buyer makes a purchase on credit
D.
A clause in a contract that allows for additional bonus payments for meeting KPIs
Answer:
B
Explanation:
Explanation
The correct answer is “A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance”. A definition is provided on p.113 and states “If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier”
Question 14
Value for money in the private sector is concerned with what?
Options:
A.
Getting the best price possible
B.
Shareholder profit and business benefit
C.
Ensuring taxpayers’ money is spent wisely
D.
Getting the best quality possible
Answer:
B
Explanation:
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.
Question 15
What is collaborative inertia?
Options:
A.
the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts
B.
A situation when the apparent output from collaboration is considerably less than expected
C.
When a partnership is unable to create new ideas
D.
Where a third party is invited to join a partnership.
Answer:
B
Explanation:
Explanation
The correct answer is ‘A situation when the apparent output from collaboration is considerably less than expected’. This is verbatim the definition given in the study guide on p.166 A synergy is the concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.
Question 16
In a monopoly market, which of the following statements is true?
Options:
A.
bargaining power of suppliers is strong
B.
bargaining power of buyers is strong
C.
There is strong rivalry
D.
There is a threat of new entrants
Answer:
A
Explanation:
Explanation
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39
