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Chapter 3 Quiz

This document appears to be a quiz covering key concepts from Chapter 3 on purchasing policies and procedures. It contains 15 multiple choice questions testing understanding of terms like policy, procedure, supplier relations policies, and the objectives and roles of purchasing functions. The questions cover topics such as the definition of policy, the documentation of purchasing procedures, responsibilities for legal contracts, and policies regarding supplier relations and qualification.

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elena
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101 views

Chapter 3 Quiz

This document appears to be a quiz covering key concepts from Chapter 3 on purchasing policies and procedures. It contains 15 multiple choice questions testing understanding of terms like policy, procedure, supplier relations policies, and the objectives and roles of purchasing functions. The questions cover topics such as the definition of policy, the documentation of purchasing procedures, responsibilities for legal contracts, and policies regarding supplier relations and qualification.

Uploaded by

elena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Elena Cristina Ardines Gutiérrez 1877476 Group 5Ci

Quiz- Chapter 3. Purchasing Policies and Procedures


1. The term_______ includes all the directives, both explicit and implied, that designate
the aims and ends of an organization and the appropriate means used in their
accomplishment.
a) Instruction
b) Policy
c) Guide
d) Code of ethics

2. Provide a framework for consistent decision making and action


a) Advantage of a policy
b) Disadvantage of a policy

3. Can restrict innovation and flexibility.


a) Advantage of a policy
b) Disadvantage of a policy

4. Type of policy where the evaluation may require buyers to periodically review
purchased items or services to determine if existing suppliers still maintain market
leadership
a) Supplier responsibility for defective material
b) Purchased item comparisons
c) Purchasing procedures
d) Development of legal contracts

5. What is the correct definition of “procedure”?


a) It specifies industry best practices to follow that are identified through
benchmarking comparisons with leading firms
b) Is a reference guide for purchasing personnel
c) Provides consistency and order by documenting the steps and activities
required to perform a task.
d) Are the operating instructions detailing functional duties or tasks, and a
procedure manual is really a how-to manual.

6. What do existing procedures usually document?


a) The proper steps to follow during each stage of the purchasing cycle or
process
b) Basic information of the company
c) Resolution of administration conflicts
d) The business’ history
Elena Cristina Ardines Gutiérrez 1877476 Group 5Ci

7. Who is responsible for becoming familiar with the procedures covering legal contracts?
a) The company’s CEO
b) The purchasing employee
c) The human resource department manager
d) The business’ accountant

8. State that these suppliers should receive a fair and equal opportunity to participate in
the purchasing process
a) Environmental policies
b) Supplier relation
c) Qualification and selection
d) Policies supporting minority business suppliers

9. Are common in contracts with the U.S. government, which encourages awarding
subcontracts to small suppliers.
a) Policies supporting business
b) Buyer- seller relationship
c) Policies supporting disadvantaged suppliers
d) Purchase contracts

10. Policy often describes a number of principles that support positive buyer- seller
relationship
a) Establishing a fair process to award purchase contracts
b) Product quality
c) Potential for innovation
d) Conditions prompting a rebid

11. This policy may also outline management’s position on single and multiple sourcing
or the use of longer-term purchase agreements.
a) Purchasing contracts
b) Qualification and supplier selection
c) Difficulties at suppliers
d) Supplier relations

12. Personnel at all levels must be aware of______________ to conduct business and to
represent organizational interests.
a) Tasks
b) Buying levels
c) Purchasing’s authority
d) Buyer-seller relationships

13. It is a responsibility of the corporate purchasing office


a) To carry out executive policies
b) To establish the company’s hierarchy
Elena Cristina Ardines Gutiérrez 1877476 Group 5Ci

c) To detect possible customers for the company


d) To pressure suppliers on buying the company’s products

14. One of the objectives of the purchasing function is to...


a) To treat all customers fairly and ethically
b) To treat all suppliers fairly and ethically
c) To change the company’s objectives
d) To limit supplier contributions

15. Controlling unauthorized or excessive contacts or visits with suppliers corresponds to


this type of policy
a) Policies defining the role of purchasing
b) Policies defining the conduct of purchasing personnel
c) Policies defining operational issues
d) Policies defining social and minority business objectives

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