Procurement Final Exam questions with answers

Procurement Final Exam questions with |\ |\ |\ |\ |\




answers

Most important tasks of a purchasing agent - CORRECT
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ANSWERS ✔✔ |\




Procurement - CORRECT ANSWERS ✔✔act of obtaining |\ |\ |\ |\ |\ |\ |\



goods or services (to get possession of )
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Procurement = ____________________ - CORRECT ANSWERS |\ |\ |\ |\ |\



✔✔purchasing
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Sourcing - CORRECT ANSWERS ✔✔to specify the source
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of, NOT the same as procurement
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when to use an RFQ - CORRECT ANSWERS ✔✔requests
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quotation for price and delivery when all other values are
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specified


When to use RFP (request for Proposal) - CORRECT
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ANSWERS ✔✔where request requires technical expertise, |\ |\ |\ |\ |\ |\



or if the product does not yet exist and requires more
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research

,ITB (Invitation to bid) - CORRECT ANSWERS ✔✔calls
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contractors to submit a proposal on a project, the
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company seeking business should have a detailed
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understanding of the work or service needed |\ |\ |\ |\ |\ |\




RFI (request for information) - CORRECT ANSWERS
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✔✔document used to gain general info about a |\ |\ |\ |\ |\ |\ |\



product/service
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what three parties does an agency relationship require -
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CORRECT ANSWERS ✔✔the principal, the agent, the one
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with which the agent conducts business on behalf of the
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principal


most important tasks of a purchasing agent - CORRECT
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ANSWERS ✔✔representing the principal in the
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development and negotiation of contracts with third |\ |\ |\ |\ |\ |\ |\



parties


Authority of the purchasing manager - CORRECT
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ANSWERS ✔✔1. express authority 2. implied authority 3.
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Emergency authority |\




when must the purchasing manager be granted authority
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- CORRECT ANSWERS ✔✔to make purchase contracts
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, who accepts the contracting authority - CORRECT
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ANSWERS ✔✔the purchasing manager |\ |\ |\




who accepts the commitments that were made to the
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purchasing manager - CORRECT ANSWERS ✔✔the |\ |\ |\ |\ |\ |\



employer


Dollar limitation authorization - CORRECT ANSWERS
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✔✔any contract that exceeds the dollar level must be
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signed by a superior purchasing officer
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The purchasing official has no personal liability when the
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following are satisfied - CORRECT ANSWERS ✔✔the name
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of the company is shown on the document, all parties
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involved know that the purchasing agent is acting on
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behalf of the company, the agency relation is shown on
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the document, the purchasing agent is acting within
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scope of his/her authority |\ |\ |\




What should you ALWAYS negotiate - CORRECT ANSWERS
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✔✔Ocean rates! (ocean transportation) |\ |\ |\




who routinely signs purchase orders/contracts, commiting
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the company to specific terms and conditions of those
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contracts - CORRECT ANSWERS ✔✔purchasing personnel |\ |\ |\ |\ |\