KEY CONCEPTS IN PUBLIC PROCUREMENT
AND CONTRACT MANAGEMENT FULL TEST
BANK WITH ACTUAL QUESTIONS AND
CORRECT SOLUTIONS GUARANTEED PASS
◉Accessory Equipment . Answer: Products used to facilitate production;
includes products such as personal computers, hand tools, desktop
printers, and toolboxes.
◉Administrative Lead Time . Answer: The period or interval, usually
measured in days, from the receipt of a requirement in procurement
through purchase order award.
◉Aftermarket . Answer: A market for parts and accessories used in the
repair or enhancement of a product. A secondary market created after the
original market sales have concluded.
◉Agency Law . Answer: Agency law is concerned with any principal-
agent relationship. This involves a relationship in which one person has
the legal authority to act for another.
◉Amendments to Contracts . Answer: Includes any agreed-upon
changes to contracts.
,◉Amendments to Solicitation Documents . Answer: Any changes,
additions, or deletions to an RFI, RFQ, or RFP, as well as any other
clarifications and correspondence with suppliers.
◉Benchmarking . Answer: The process of comparing performance
against the practices of other leading companies to improve
performance. Companies also benchmark internally by tracking and
comparing current performance with past performance.
◉Best Practices . Answer: A specific process or group of processes that
have been recognized as the best method for conducting an action. Best
practices may vary by industry or geography, depending on the
environment being used.
◉Bidding Automation . Answer: This occurs when bid packages and
specifications are made available online, bidders submit their bids and
proposals online, and the bid opening and award are communicated
electronically.
◉Bill of Lading . Answer: A transportation document that is the contract
of carriage containing the terms and conditions between shippers and
carriers.
,◉Blanket Purchase Orders (BPOs) . Answer: An order that customers
place with suppliers that contains multiple delivery dates scheduled over
a period of time, sometimes at predetermined prices.
◉Breach of Contract . Answer: Involves the failure, without legal
excuse, to perform the obligations of a contract.
◉Business Unit Strategy . Answer: The guiding principles and planned
objectives set by management to be followed by an autonomous division
of a company.
◉Capital . Answer: The resources, or money, available for investing in
assets that produce output.
◉Categorical Measurement Systems . Answer: These systems require
simple check-offs that describe a supplier's performance across different
categories.
◉Centralization . Answer: When procurement functions are centralized,
this may support procurement execution efficiencies by allowing for the
creation of well-defined commodity groups.
◉Classification . Answer: An alphabetical listing of the commodities,
the class or rating into which the commodity is placed, and the minimum
weight necessary for a rate discount.
, ◉Coercive Power . Answer: A type of negotiation power that involves
the use of punishment that can lead to failed negotiations.
◉Collaborative Relationships . Answer: Involve working with a limited
group of suppliers who are strategically important to the success of the
buying firm.
◉Co-Located . Answer: This occurs when two or more groups in a firm
share the same office space.
◉Commercial Law . Answer: The branch of study that handles how
businesses enter into contracts with each other, execute contracts, and
remedy problems that may arise between the firms.
◉Commodity . Answer: Any physical item that is traded in commerce.
The term usually implies an undifferentiated product that competes
primarily on price and availability.
◉Commodity Councils . Answer: Cross-organizational entities
established to leverage a firm's purchasing power. Councils manage a
well-defined set of goods or services and include the sharing of
information, such as supplier information, contract terms, and even
specific contracts across the firm's global operations.
AND CONTRACT MANAGEMENT FULL TEST
BANK WITH ACTUAL QUESTIONS AND
CORRECT SOLUTIONS GUARANTEED PASS
◉Accessory Equipment . Answer: Products used to facilitate production;
includes products such as personal computers, hand tools, desktop
printers, and toolboxes.
◉Administrative Lead Time . Answer: The period or interval, usually
measured in days, from the receipt of a requirement in procurement
through purchase order award.
◉Aftermarket . Answer: A market for parts and accessories used in the
repair or enhancement of a product. A secondary market created after the
original market sales have concluded.
◉Agency Law . Answer: Agency law is concerned with any principal-
agent relationship. This involves a relationship in which one person has
the legal authority to act for another.
◉Amendments to Contracts . Answer: Includes any agreed-upon
changes to contracts.
,◉Amendments to Solicitation Documents . Answer: Any changes,
additions, or deletions to an RFI, RFQ, or RFP, as well as any other
clarifications and correspondence with suppliers.
◉Benchmarking . Answer: The process of comparing performance
against the practices of other leading companies to improve
performance. Companies also benchmark internally by tracking and
comparing current performance with past performance.
◉Best Practices . Answer: A specific process or group of processes that
have been recognized as the best method for conducting an action. Best
practices may vary by industry or geography, depending on the
environment being used.
◉Bidding Automation . Answer: This occurs when bid packages and
specifications are made available online, bidders submit their bids and
proposals online, and the bid opening and award are communicated
electronically.
◉Bill of Lading . Answer: A transportation document that is the contract
of carriage containing the terms and conditions between shippers and
carriers.
,◉Blanket Purchase Orders (BPOs) . Answer: An order that customers
place with suppliers that contains multiple delivery dates scheduled over
a period of time, sometimes at predetermined prices.
◉Breach of Contract . Answer: Involves the failure, without legal
excuse, to perform the obligations of a contract.
◉Business Unit Strategy . Answer: The guiding principles and planned
objectives set by management to be followed by an autonomous division
of a company.
◉Capital . Answer: The resources, or money, available for investing in
assets that produce output.
◉Categorical Measurement Systems . Answer: These systems require
simple check-offs that describe a supplier's performance across different
categories.
◉Centralization . Answer: When procurement functions are centralized,
this may support procurement execution efficiencies by allowing for the
creation of well-defined commodity groups.
◉Classification . Answer: An alphabetical listing of the commodities,
the class or rating into which the commodity is placed, and the minimum
weight necessary for a rate discount.
, ◉Coercive Power . Answer: A type of negotiation power that involves
the use of punishment that can lead to failed negotiations.
◉Collaborative Relationships . Answer: Involve working with a limited
group of suppliers who are strategically important to the success of the
buying firm.
◉Co-Located . Answer: This occurs when two or more groups in a firm
share the same office space.
◉Commercial Law . Answer: The branch of study that handles how
businesses enter into contracts with each other, execute contracts, and
remedy problems that may arise between the firms.
◉Commodity . Answer: Any physical item that is traded in commerce.
The term usually implies an undifferentiated product that competes
primarily on price and availability.
◉Commodity Councils . Answer: Cross-organizational entities
established to leverage a firm's purchasing power. Councils manage a
well-defined set of goods or services and include the sharing of
information, such as supplier information, contract terms, and even
specific contracts across the firm's global operations.
