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Training CORe Online, Interactive CORe Course

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ISM Supply Management Core Exam Sample Questions (Q264-Q269):

NEW QUESTION # 264
A company's accounting department implements a new system to track liabilities for capital assets. The reports developed by this system exclude some important indirect procurement data (e.g., transactions related to test equipment), as this information is tracked by another system. Which of the following is the BEST course of action for the firm to take in this situation?

A. Notify senior management that reports from the new system may understate the company's debts and assets
B. Estimate the total debts and assets being tracked outside the system and correct any large variances on a quarterly basis
C. Take no action, as the aggregate numbers reported to shareholders will not be severely affected
D. Notify the entire organization of the issue during the next iteration of the tool

Answer: A

NEW QUESTION # 265
A research company develops a tomato that grows in cold weather. The company agrees to sell ten thousand seeds to a broker for $5,000. However, an error is made on the contract which misstates the price as $4,000. The research company and broker both sign the contract without noticing the error. Some weeks later, the broker discovers the error and refuses to pay more than
$4,000. In this situation, the FIRST course of action for the research company to resolve the dispute is to establish with the broker that

A. the written agreement was a sham
B. there was a misunderstanding concerning price
C. the written agreement constituted a partial integration
D. there was an administrative mistake

Answer: D

NEW QUESTION # 266
A supply manager for PQR, Inc. is negotiating a contract to purchase software. The software will streamline PQR's online purchasing process with a one-click buy function. The supply manager wants to ensure PQR's performance expectations are met and that the consequences of failure to perform are properly captured. In this situation, which of the following is MOST important for the supply manager to include in the contract?

A. Service-level agreements
B. Warranties
C. Protective covenants
D. Maintenance and support

Answer: A

Explanation:
* Understanding the Contract Needs: The supply manager's primary concern is ensuring that the software meets PQR's performance expectations and that there are clear consequences if these expectations are not met.
* Service-Level Agreements (SLAs): SLAs are contractual commitments between a service provider and a client. They specify the performance standards the provider must meet and the remedies or penalties for failing to meet them.
* Performance Expectations: By including SLAs in the contract, the supply manager ensures that there are measurable performance metrics for the software, such as uptime, response time, and resolution time for issues.
* Consequences of Failure: SLAs also outline the consequences if the vendor fails to meet the agreed-upon standards. This can include penalties, service credits, or termination of the contract.
* Protective Covenants, Warranties, and Maintenance and Support: While these are important, they do not directly address the performance expectations and consequences of failure as effectively as SLAs.
References
* CIPS (Chartered Institute of Procurement & Supply). (n.d.). Service Level Agreement (SLA) - A detailed guide.
* SCMDOJO. (n.d.). The importance of SLAs in Procurement Contracts.

NEW QUESTION # 267
In finance, beta is a measure of the systematic risk of a security in comparison to the market as a whole. Beta can be found by running a regression analysis of the monthly returns of the security versus the monthly returns of the general market. The regression output table below shows the relationship between Boeing's monthly returns and the monthly returns of the Standard and Poor's 500 (S&P 500) which is a stock market index of 500 large companies.

If beta is the average change in Boeing's monthly returns as the monthly returns of the S&P 500 increase by one, what is Boeing's beta?

A. 1.1400
B. 0.2708
C. 0.5204
D. 0.0100

Answer: A

NEW QUESTION # 268
HIJ, Inc. is planning to purchase a generic, well specified item offered by many suppliers. This will be HIJ's first time purchasing an item of this type. The market is highly competitive, and HIJ has identified many pre-qualified suppliers. HIJ needs a standard weekly delivery of two full truckloads of the item to meet a fixed production schedule. In this situation, which of the following is likely to yield the BEST value for HIJ?

A. Invitation for bid
B. Request for information
C. Request for qualifications
D. Reverse auction

Answer: D

NEW QUESTION # 269
......

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