NASPO CPPB PREP EXAM PREPARATION NEWEST
2026 2027 COMPLETE 100 QUESTIONS AND
CORRECT ANSWERS VERIFIED ANSWERS ALREADY
GRADED A+ HIGH YIELD STUDY GUIDE ACTUAL
UPDATED PRACTICE QUESTIONS CERTIFICATION
EXAM PREPARATION SUCCESS REVIEW BRAND NEW
VERSION
Cost Plus Percentage of Cost Contracts - CORRECT ANSWER=An
agreement on a construction project in which the contractor is
provided a specified percentage profit over and above the actual
costs of construction. These contracts are considered poor
business practice because the contractor has little incentive to hold
down costs. The type of costing method is prohibited in Federal
purchasing.
Procurement - CORRECT ANSWER=Includes purchasing, contract
administration, inventory, receiving and disposal.
Integrity - CORRECT ANSWER=The value of one's words and
actions.
Competition - CORRECT ANSWER=Provides an incentive to reduce
cost and increase quality.
1 | Page
,Laws - CORRECT ANSWER=Define and control what public
agencies may do.
ABA - CORRECT ANSWER=American Bar Association
ABL - CORRECT ANSWER=Approved Brands List, also Approved
Products List [APL]
ABA Model Procurement Code for State and Local Government (U S
Law) - CORRECT ANSWER=Developed by the ABA and adopted in
1979, it is a collection of statutory principles and policies that
provides guidance to public policy managers who wish to
responsibly manage public procurement. Stat and large local
governments have individually codified it into procurement law and
policy to effectively guide their procurement organizations. The code
was updated in 2000 and contained enhancements in the following
areas: Electronic Commerce,
Cooperative Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and Services. Also
called the Model Procurement Code.
Anti Trust Laws - CORRECT ANSWER=State and federal laws
enacted to ensure free, fair and open competition by prohibiting
monopolies or conspiracies in restraint of trade in interstate and
foreign commerce. The Sherman and Clayton Acts are examples of
Federal AntiTrust Laws.
2 | Page
,Oligopoly - CORRECT ANSWER=A market in which few firms
produce all or most of the market supply of a particular good or
service. Also Imperfect Competition. Implied authority occurs
when?
a) Inferences and reasonable deductions based on conduct are
made.
b) Explicit language grants authority;
c) Codified language is used to delegate responsibility and authority
to a given party;
d) The illusion of authority is allowed - CORRECT ANSWER=a)
Inferences and reasonable deductions based on conduct are
made.
Apparent authority occurs when?
a) An individual functions in the capacity that leads others to believe
he/she is an authorized agent of the principle.
b) Explicit language grants authority.
c) A logical extension of expression authority conferred upon a given
party.
d) Codified language delegating responsibility and authority to a
given party. - CORRECT ANSWER=a) An individual functions in
the capacity that leads others to believe he/she is an authorized
agent of the principle.
3 | Page
, In 1890, Congress passed this Antitrust Act. It has been the linchpin
of antitrust law. In Section 1 of this Act, it states: Every contract,
combination in the form of trust or otherwise, or conspiracy, in
restraint of trade or commerce among the several States, or with
foreign nations, is declared to be illegal. Every person who shall
make any contract or engage in any combination or conspiracy
hereby declared to be illegal shall be deemed guilty of a felony, and,
on conviction thereof, shall be punished by fine not exceeding
$100,000,000 if a corp., or, if any person, $1,000,000, or by
imprisonment not exceeding 10 years, or by both said punishments,
in the discretion of the court. Section 2 of this Act, makes interstate
monopolies a felony. This Act is:
a) The Clayton Act
b) The Federal Trade Commission Act
c) The Sherman Act
d) The Robinson-Patman Price Discrimination Act - CORRECT
ANSWER=c) The Sherman Act
The procurement officer has noticed several suspicious pricing
patterns and supplier behaviors, including identical bids and a lack
of bids from some expected bidders for an open solicitation. On
detecting this suspicous activity, the procurement officer should
immediately:
a) alert all suppliers that the solicitation will be canceled and
resolicited
4 | Page
2026 2027 COMPLETE 100 QUESTIONS AND
CORRECT ANSWERS VERIFIED ANSWERS ALREADY
GRADED A+ HIGH YIELD STUDY GUIDE ACTUAL
UPDATED PRACTICE QUESTIONS CERTIFICATION
EXAM PREPARATION SUCCESS REVIEW BRAND NEW
VERSION
Cost Plus Percentage of Cost Contracts - CORRECT ANSWER=An
agreement on a construction project in which the contractor is
provided a specified percentage profit over and above the actual
costs of construction. These contracts are considered poor
business practice because the contractor has little incentive to hold
down costs. The type of costing method is prohibited in Federal
purchasing.
Procurement - CORRECT ANSWER=Includes purchasing, contract
administration, inventory, receiving and disposal.
Integrity - CORRECT ANSWER=The value of one's words and
actions.
Competition - CORRECT ANSWER=Provides an incentive to reduce
cost and increase quality.
1 | Page
,Laws - CORRECT ANSWER=Define and control what public
agencies may do.
ABA - CORRECT ANSWER=American Bar Association
ABL - CORRECT ANSWER=Approved Brands List, also Approved
Products List [APL]
ABA Model Procurement Code for State and Local Government (U S
Law) - CORRECT ANSWER=Developed by the ABA and adopted in
1979, it is a collection of statutory principles and policies that
provides guidance to public policy managers who wish to
responsibly manage public procurement. Stat and large local
governments have individually codified it into procurement law and
policy to effectively guide their procurement organizations. The code
was updated in 2000 and contained enhancements in the following
areas: Electronic Commerce,
Cooperative Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and Services. Also
called the Model Procurement Code.
Anti Trust Laws - CORRECT ANSWER=State and federal laws
enacted to ensure free, fair and open competition by prohibiting
monopolies or conspiracies in restraint of trade in interstate and
foreign commerce. The Sherman and Clayton Acts are examples of
Federal AntiTrust Laws.
2 | Page
,Oligopoly - CORRECT ANSWER=A market in which few firms
produce all or most of the market supply of a particular good or
service. Also Imperfect Competition. Implied authority occurs
when?
a) Inferences and reasonable deductions based on conduct are
made.
b) Explicit language grants authority;
c) Codified language is used to delegate responsibility and authority
to a given party;
d) The illusion of authority is allowed - CORRECT ANSWER=a)
Inferences and reasonable deductions based on conduct are
made.
Apparent authority occurs when?
a) An individual functions in the capacity that leads others to believe
he/she is an authorized agent of the principle.
b) Explicit language grants authority.
c) A logical extension of expression authority conferred upon a given
party.
d) Codified language delegating responsibility and authority to a
given party. - CORRECT ANSWER=a) An individual functions in
the capacity that leads others to believe he/she is an authorized
agent of the principle.
3 | Page
, In 1890, Congress passed this Antitrust Act. It has been the linchpin
of antitrust law. In Section 1 of this Act, it states: Every contract,
combination in the form of trust or otherwise, or conspiracy, in
restraint of trade or commerce among the several States, or with
foreign nations, is declared to be illegal. Every person who shall
make any contract or engage in any combination or conspiracy
hereby declared to be illegal shall be deemed guilty of a felony, and,
on conviction thereof, shall be punished by fine not exceeding
$100,000,000 if a corp., or, if any person, $1,000,000, or by
imprisonment not exceeding 10 years, or by both said punishments,
in the discretion of the court. Section 2 of this Act, makes interstate
monopolies a felony. This Act is:
a) The Clayton Act
b) The Federal Trade Commission Act
c) The Sherman Act
d) The Robinson-Patman Price Discrimination Act - CORRECT
ANSWER=c) The Sherman Act
The procurement officer has noticed several suspicious pricing
patterns and supplier behaviors, including identical bids and a lack
of bids from some expected bidders for an open solicitation. On
detecting this suspicous activity, the procurement officer should
immediately:
a) alert all suppliers that the solicitation will be canceled and
resolicited
4 | Page
