MGMT 332 Final Exam

______ method involves the selection of a single firm to accomplish the complete design and construction of the project. -"Turnkey" -"General Contractor" -"Construction Management" -"Group Project"

"Turnkey"

Commodity prices can fluctuate between ___% and ___% in one season due to weather conditions and variables such as supply and demand. -10% and 50% -10% and 100% -50% and 100% -100% and 500% -500% and 1000%

100% and 500%

As of 2004, what percent of GNP is accounted for by the health sector? -34% -9% -14% -27%

14%

In the services purchasing context, which of the following best describes the process of Analysis of supply alternatives? -Sourcing & Pricing -Other terms and conditions -Both A & B -None of the above.

Both A & B

The Air 'mode' of transportation is often used for shipping which of the following: -Commodities. -Electronics and fashion goods. -Bulk goods. -none of the above.

Electronics and fashion goods.

Which of the following is NOT a sign of poor MRO management? -Employees horde MRO items in their workspace -MRO is seen only as a cost center for the organization -Many "Maverick" purchases are happening. -Parts spend too much time collecting dust* -Workplace injuries decrease

Employees horde MRO items in their workspace

Which of the following is NOT true about U.S. Federal purchasing? -The U.S. federal government is the largest purchaser in the world. -Only two statutes provide the framework for federal contracting, however, there are thousands of other laws that affect purchasing. -Exactly one law creates all US government agencies, promote fairness, effectiveness and uniformity.

Exactly one law creates all US government agencies, promote fairness, effectiveness and uniformity.

A foreign trade zone (FTZ) in the U.S. is completely different in purpose from a maquiladora in Mexico. T or F

False

A strategic purchase is mission critical, meaning that it may help or hinder attainment of the supply department's strategic goals and objectives. T or F

False

All states (within the United States) use the same constitutional, statutory and regulatory requirements that affect how the agencies, institutions, and offices purchase. T or F

False

Arbitration is when opposing parties in a contractual dispute between buyer and seller are brought together to attempt to work out a settlement or agreement that both parties accept or reject. T or F

False

As the buyer-supplier network grows in size and complexity, the need to have a more informal system for evaluating current sources also increases. T or F

False

Capital Goods are short-term, tangible assets used for the production of goods and service. T or F

False

Commercial letters of credit (CLCs) are the least actively used structured payment instruments in global trade. T or F

False

Effective acquisition of services does NOT represent a significant challenge. T or F

False

Environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare, community development, and protection from harm. T or F

False

F.O.B. destination means that the title to the merchandise passes at the time and place of pickup. T or F

False

Finished goods are materials that have been transformed from commodities into standard products such as steel sheets, plastic resins, etc. T or F

False

Historically, the advantages of global sourcing were more dependable service, greater flexibility, and detailed knowledge of the buyer's specific requirements. T or F

False

Implied authority includes the acts that the agent is expressly and directly authorized to perform. T or F

False

In a Total Cost of Ownership approach, the cost of design, specification, and requisition are the major source of total lifetime cost. Additionally, design, specification and requisition have major implications for total costs over the lifetime of a purchased asset's lifetime. T or F

False

In general, laws require government contracts go to the highest responsible and responsive bidder. T or F

False

It is as easy to compare total cost of ownership from an offshore source to that of a domestic one. T or F

False

It is usually easier to assess quality of services than for products. T or F

False

Market predictions of future supply and demand rarely affect pricing for commodities or raw materials. T or F

False

Multi-step Seal Bidding is more common that Competitive sealed bidding. T or F

False

Near shoring refers to outsourcing to a contract manufacturer who is located near a coast with a major port facility. T or F

False

Organizations have always made MRO one of their biggest priorities. T or F

False

Reciprocity, the practice of requiring a supplier to purchase a set amount from the buying firm, is legal in the U. S., but is illegal in almost every country in the world. T or F

False

Refusal to accept shipments is an example of a positive, or "stroking" technique, used to shift position on the buyer-supplier satisfaction matrix. T or F

False

Services and products are always tangible. T or F

False

Some of most important changes (recently) in many corporate purchasing departments are the recognition that Price is more important than Value and Supplier is more important than Partner. T or F

False

Stockless inventory system is when users or buyers review quantities periodically at fixed intervals of time and an order is placed for a quantity sufficient to replenish the stock to a predetermined maximum level. T or F

False

Supplier goodwill cannot be quantified or measured so it is the supply manager's best estimate as to how much supplier goodwill has been generated. T or F

False

Supply availability is the most common criterion used to decide where organizations direct their supply research efforts. T or F

False

TCO (Total cost of ownership) is not particularly useful in capital goods acquisition because some capital goods are leased, not purchase. T or F

False

The 'water' mode of transport focuses mostly on non-perishable goods. (water, sewage, and energy) T or F

False

The authority of the sales representative is the same as that of a supply manager. T or F

False

The cost of maintenance supplies are included in the capital budget. T or F

False

The growth in international trade has come from an increase in the international sale of goods but not services. T or F

False

The private sector includes federal, state, county, and local governments. T or F

False

Trains are the dominant means of transporting goods in the United States and Canada. T or F

False

Triple bottom line reporting refers to an organization's social, environmental, and political performance. T or F

False

Typically, international purchasing offices (IPOs) are used when the company has an established presence in the same geographic region where important suppliers are located. T or F

False

Under the point of service plan employees can go to any specialist without a referral, and the insurance company has no say as to whether the visit is necessary. T or F

False

Use of express deliveries such as over-night or two-day air transportation services will NOT help facilitate production flows and process improvements. T or F

False

When choosing between Truckload (TL) or Less-than-truckload (LTL) carriers, a purchaser does NOT need to pay close attention to weight and volume of shipment and packaging. T or F

False

_________ categorizes each specification as a necessary feature, desirable feature, or a characteristic that is irrelevant or even undesirable. -Functional Specifications -Preference Point System -Physical Specifications -Feature Categorization

Functional Specifications

Which two of the following are necessary for a valid contract? I. A description of the scope of work. II. An offer. III. Legal subject matter and purpose. IV. A counteroffer. -I and II. -I and III. -I and IV. -II and III. -II and IV.

II and III.

The choice between competitive bidding and negotiated procurement can depend on all the following except: -The Nature of the Competitive Environment -The Type of Service or Nontraditional Good -The Amount of Costs Associated[HD1] [EP2] Bidding -The Need for Continuity of Service Delivery

The Amount of Costs Associated[HD1] [EP2] Bidding

_________ accounts for the total cost of performing the designated function over the lifetime of the equipment. -Lifetime Value. -Total Depreciation Costs. -Total Capital Expenditures. -Total Cost of Ownership.

Total Cost of Ownership.

A commodity hedging contract is used to neutralize as much risk as possible between the parties of the contract. T or F

True

A raw product is a commodity when all units of production are identical, regardless of the producer. T or F

True

Buyer-supplier relationships fall somewhere on a continuum from competitive to cooperative to collaborative. T or F

True

Common law governs the purchase of services, including (1) contracts solely for services and (2) contracts wherein services and goods are bundled and the service portion equals more than 50 percent of the value of the contract. T or F

True

Cost management categories that might be measured include: (1) cost savings, (2) cost reductions, (3) cost avoidance, and (4) process cost savings. T or F

True

Duty drawbacks permit a refund of duties paid on imported materials that are later exported. T or F

True

Earned value uses the units of time and money. T or F

True

Factors to be considered when selecting a mode of shipment, carrier, and routing include required delivery time, available services, shipment size, and reliability and service quality. T or F

True

Health care purchasing can effectively implement Fixed order quantity approaches (e.g. EOQ) if they are buying standardized products and if they know specifically how much they need. T or F

True

Hospitals are complex organizations providing a multitude of services to patients, physicians, and staff. T or F

True

Improvements in transportation and communications have reduced the lead time for offshore purchases. T or F

True

In a study on health care supply chains, Reisman categorizes the following as urgency requirements: use-location urgency, facility location urgency, regional-location urgency, and no urgency. T or F

True

In the bidding process the bidder will typically be sent the following: a complete list of specifications that the item being supplied must meet, a list of instructions, general and specific legal conditions that must be met, and a bid form in which the supplier will submit price, discounts, and other required information. T or F

True

In the context of supplier selection decisions, the term "local" can be defined differently depending on the organization and its scope of operations T or F

True

In the past, companies have chosen either a control or convenience MRO approach, and both approaches have failed. T or F

True

Industry benchmarking allows an individual company to compare itself to the average and range of performance data for all respondents in the aggregate. T or F

True

It is common for international trade disputes to be settled through international arbitration partly because the costs of litigation exceed the costs of arbitration. T or F

True

It is easier to make salary-level adjustments in the private sector then the public sector. T or F

True

MRO occurs in every industry. T or F

True

Monitoring changes in market trends and technologies can help protect purchasers from the "dark side of buyer-supplier relationships." T or F

True

One of the most-commonly mentioned special attributes of services deals is the inability to store services. T or F

True

One services contracting method is a Service Level Agreement (SLA) which is a document that details the means, method, organization, and processes along with material requirements. T or F

True

People within an organization who spend company money on the basis of apparent authority are commonly referred to as maverick buyers. T or F

True

Portfolio or quadrant analysis may be used to develop longer-term strategies for moving categories of spend into a more desirable location on the spend map. T or F

True

Project planning is particularly important where complexity of the project is high. T or F

True

Purchasers integrate systems or processes with preferred suppliers to avoid unnecessary duplication and speed up transactions. T or F

True

Rail transport is used extensively (in the USA) for commodities such as lumber, iron, steel, coal, vehicles, grains, and chemicals. T or F

True

Raw materials can be defined as "Materials that have been transformed from commodities into standard products such as steel sheets, plastic resins, etc. T or F

True

Supply management and demand management are critical to effectively managing supply chains. T or F

True

The "Truck" mode of transportation accounts for more revenue that the combined revenues generated from water, air, rail, pipeline and rail intermodal combined. T or F

True

The EPA's Environmentally Preferable Purchasing (EPP) Program supports the development of standards for the manufacture and purchase of goods and services that are environmentally preferable and the use of those standards in federal procurement. T or F

True

The buyer's assessment of the risk associated with a supplier is influenced by whether it is a noncritical, leverage, bottleneck, or strategic purchase. T or F

True

The determination of whether a bidder is 'responsible' is made anytime between opening bids and awarding the contract, but not after awarding the contract. T or F

True

The extractive industry consists of any operations that removes resources like minerals, metals, and aggregates from the earth. T or F

True

The fixed order interval (periodic review approach) is currently not widely used in Health Care. T or F

True

The management of a construction project must strive to achieve the optimal balance of risk mitigation while achieving the requirements within the scope of the project. T or F

True

The practice of buying directly from manufacturers and bypassing distributors is referred to as disintermediation. T or F

True

The services sector is quite broad and includes (among other things) construction, transportation, advertising. T or F

True

The supplier market group for raw materials/commodities can be divided into four groups: perfect competition, imperfect competition, oligopoly, and monopoly. T or F

True

The three levels of agreement that are normally used in the construction proposal process are license to use, right of resale, right of copyright or patent. T or F

True

The three types of leases that are commonly considered for capital asset acquisitions are: sales and leaseback arrangements, operating leases, and capital leases. T or F

True

There is generally a significant cost impact on processing commodities, depending on factors such as purity which can cause a material to take longer or shorter to process T or F

True

There may be legitimate reasons for not single sourcing or forming buyer-supplier partnerships even in a progressive purchasing and supply management organization. T or F

True

Two-Step buying is most commonly used in the construction/project procurement sector due to the fact that the information and expertise is missing in the purchasing organization without communicating with someone who will be overseeing the project. T or F

True

When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice, the employee is exercising apparent authority. T or F

True

Which of the following is NOT a type of contract that is utilized in the service industry? -Cost-Plus Distributor Markup -Fixed Price -Market Price -Value Added Markup

Value Added Markup

The principle(s) underlying blockchain technology include: -a distributed database. -peer-to-peer transmission. -transparency with pseudonymity. -irreversibility of records. -a distributed database, peer-to-peer transmission, transparency with pseudonymity and irreversibility of records.

a distributed database, peer-to-peer transmission, transparency with pseudonymity and irreversibility of records.

The budget that covers all of the expenses incurred for the supply function including salaries and wages; space, equipment, and information technology costs; travel and entertainment, educational, postage, telephone, cell phone, and office supplies expenditures, is called the: -capital budget. -cash flow budget. -materials purchase budget. -administrative or operating budget. -organizational budget.

administrative or operating budget.

The statement of work (SOW) is the document that -describes the needs of the internal customer -communicates those needs to the supplier -serves as basis of service contract -all of the above -none of the above because a SOW it is not one of the four areas of the acquisition process.

all of the above

Which of the following statements concerning the trucking mode of transportation are incorrect? -TL rates usually are at levels well under the common carrier LTL published rates -Each mode and carrier usually offers a different service and price based on the weight, distance, and frequency of shipments -For most firms, LTL shipments represents the majority of transportation shipments -Additional services such as special handling do NOT usually require additional costs for TL shipments.

Additional services such as special handling do NOT usually require additional costs for TL shipments.

Buying Used capital goods (as opposed to new ones) is useful when: -When price is important -The good will be used for an experimental process -Substantial idle time is anticipated (ex. construction) -If equipment can be easily/cost effectively upgraded -All of the above.

All of the above.

Which of the following is NOT a question asked when determining a supplier's service capability? -Can the supplier do what they say they can? -Does it have the resources to perform? -Does it have access to adequate raw-material sources? -Can it perform to schedule?

Can it perform to schedule?

Different types of principle commodities include all EXCEPT. -Cocoa. -Grains. -Cotton. -Candy.

Candy

The _____ approach requires every MRO item to be requested in writing on a requisition form, which a purchasing professional then uses to buy the required item -Control -Purchasing -Convenience -Relationship

Control

Which of the following are NOT NEW approaches to MRO purchasing? -Control Approach -Supplier Partnership/alliances -Integrated Supply -Supplier City -Buyer Cooperative

Control Approach

Which of the following is not an extraction process? -Oil and gas extraction. -Dredging. -Cultivating. -Quarrying.

Cultivating.

If the purchaser wants the supplier to assume all responsibilities for all costs associated with transportation to the named place of destination, including duties and other costs payable upon import, the following incoterm should be used: -Free alongside ship (FAS). -Free on Board (FOB). -Cost and Freight (CFR). -Delivered Duty Paid (DDP). -Any of the above.

Delivered Duty Paid (DDP).

Which of the following is usually not an option for disposing of capital equipment/assets? -Return. -Trade-In. -Scrap/Destroy. -Sell.

Return.

Which of the following is NOT true concerning lease vs. buy decisions in capital goods acquisition? -Leasing involves payments for the use of assets instead of owning them -Leasing is popular in several fields, e.g. construction, medical equipment -Answering the question, "how quickly will this technology be outdated?" can help one decide whether to lease. -If the asset will be needed for only a few years, it's worth considering leasing -If capital good will likely experience extremely high utilization, it should probably be leased, since there usually are not limits on how much a leased item can be used.

If capital good will likely experience extremely high utilization, it should probably be leased, since there usually are not limits on how much a leased item can be used.

What event caused a change in the number of developed countries, causing the pricing and availability of raw materials and commodities to be increasingly tied to events occurring outside the United States. -Industrial Revolution. -World War 2. -Introduction of the Airplane. -Civil War.

Industrial Revolution.

Stockless Inventory systems are also known as _______. -Unavailable Inventory -Absent Inventory -Fixed Order Inventory -Just-In-Time Inventory

Just-In-Time Inventory

Which of the following is NOT on of the four basic discounts developed from the price flexibility granted by the Motor Carrier Act of 1980? -Aggregate Tender Rates -Flat Percentage Discount -Loyalty Rates -Increased Volume-Increased Discount Percentage

Loyalty Rates

Which of the following would not generally be considered a Capital Good? -Lumber -Buildings -Machinery -Vehicles -None of the above

Lumber

Which of the following is NOT one of the five stages of project management? -Understanding the project environment -Defining the project -Project Planning -Management promotions

Management promotions

Which of the following is not a contributor to capital equipment purchasing decisions? -Transportation costs. -Finance costs. -Marketing costs. -Purchasing costs.

Marketing costs.

What is the largest MRO-related Transportation, Administrative, and Logistics Cost category Storage and Inventory Invoicing and Paying Ordering and Cataloging Moving and Sorting

Moving and Sorting

Which of the following is not one of the three cash flow analysis criteria that can/should be applied in capital asset purchasing decisions? -Net Sales Projections. -Net Cash Flow. -Economic Life of the Product. -Net Cash Investment.

Net Sales Projections.

Which of the following is not a factor that is considered in determining freight charges? -Shipping weight per cubic foot -Ease of loading and unloading -Perishability -Liability for Damage -None of the above - all are factors to be considered.

None of the above - all are factors to be considered.

Which of the following are NOT current trends in Health Care purchasing? -Efficiency -Cost effectiveness -Working with primary suppliers -Implementation of automation technology -None of the above - since all are current trends.

None of the above - since all are current trends.

Which of the following is NOT part of the construction project process? -Strategic Plan -Capital Evaluation -Post Purchase Evaluation -Negotiation for Deliverables

Post Purchase Evaluation

Which of the following statements have historically been false concerning commodities prices? -Prices fell as economy lost momentum and manufactures reduced their inventories -Prices rose as the economy gained strength and manufactures increased finished goods inventories -Prices fell as manufacturers demanded more commodities -None of the above.

Prices fell as manufacturers demanded more commodities

Which is not an example of an MRO purchase? -Electrical and Mechanical -Machine Shop Supplies -Product Inventory -Vehicle and Fleet Parts

Product Inventory

Which of the following are not a Criteria for Capital Equipment/Asset Selection? -Purchasing mentality -Intended use: multi-use vs single-use -Integration & Development -Upgradeability, capacity, efficiency & other engineering & production issues. -Legal factors

Purchasing mentality

During the past 20 years, much of the effort of procurement professionals has focused on improving _________. -Customer service, production, inventory turnover -Quality, service, and cost of purchased strategic production materials -Innovation, cost of goods sold, and profit margins -Assembly lines, productivity, lean processes

Quality, service, and cost of purchased strategic production materials

_______ tells us the possibility of having a cost overrun, how large the overrun can be, what to do now to eliminate or reduce that risk, and how much contingency to add to our estimate to reduce any residual risk to an acceptable level. -Risk Comparison -Range Estimating -Value Planning -Risk Determination

Range Estimating

The procedure used to purchase a needed good or service is often determined by established dollar thresholds. Which of the following is not a category of established dollar thresholds? -Request for Quotes -Small-Dollar Purchases -Emergency Purchases -Request for Proposal

Request for Quotes

Which of the following statements are NOT true in the context of health care purchasing? -JIT purchasing can be successful under the right conditions. -Stockless purchasing probably requires a 'prime' or primary supplier contract. -Stockless purchasing requires excellent communication and cooperation within the healthcare organization as well as with the supplier organization. -Specialized Departments (i.e. Laboratory, radiology) can be well suited for JIT or stockless purchasing. -Stockless purchasing is a great idea for an emergency room, because you get the emergency supplies just in time to take care of emergencies.

Stockless purchasing is a great idea for an emergency room, because you get the emergency supplies just in time to take care of emergencies.

A bidder may demonstrate that they have the capability to perform the activity specified in the contract fully and with good faith by: -Demonstrating appropriate financial material, equipment, facility and personnel resources or the ability to obtain such resources. -Showing a satisfactory record of performance and integrity. -Showing appropriate legal qualifications. -Supplying all necessary information in connection with inquiry. -all of the above.

all of the above.

The Foreign Corrupt Practices Act (FCPA): -attempts to persuade other nations to adopt U.S. rules regarding payments to officials. -allows U.S. firms to make payments to facilitate the performance of normal duties. -allows U.S. firms to prosecute foreign nationals on bribery charges. -allows U.S. firms to make payments to facilitate normal duties and to make payments to obtain special advantages. -allows foreign nationals to offer payments to U.S. government officials to expedite trade agreements.

allows U.S. firms to make payments to facilitate the performance of normal duties.

A request for quotation (RFO) -signals the purchaser has identified a supplier as a potential source of supply and asks for information. -asks the supplier to declare at what price and what terms they are prepared to supply. -permits the supplier to fit the specifications for supply to its strengths. -signals the purchaser has identified a supplier as a potential source of supply and asks for information, and asks the supplier to declare at what price and what terms they are prepared to supply. -asks the supplier to declare at what price and what terms they are prepared to supply and permits the supplier to fit the specifications for supply to its strengths.

asks the supplier to declare at what price and what terms they are prepared to supply.

The most-cited reason for international trade is: -better overall value. -better quality. -more advanced technology. -lower total costs. -lower price.

better overall value.

On the purchasing-supplier satisfaction model, if the perceptions of buyer and supplier fall along the "fairness or stability" diagonal line, this means: -one party is satisfied and one party is dissatisfied. -one party is better off in the relationship than the other party. -both parties are satisfied with the relationship. -both parties are at least equally well-off. -both parties are unsatisfied with the relationship.

both parties are at least equally well-off.

Purchasing process benchmarking attempts to: -analyze a firm's own internal trends. -provide industrywide standards for overall firm performance. -determine how an organization achieves results in purchasing and supply. -determine what results have been achieved by purchasing and supply activities. -provide baseline metrics to compare companies' supply performance.

determine how an organization achieves results in purchasing and supply.

Best results from supplier visits come from: -developing, in advance, a general outline of the kinds of information sought. -gathering, in advance, all reasonably available information, both general and specific, about the company. -preparing a detailed report of the findings after the visit. -developing, in advance, a general outline of the kinds of information sought; and gathering, in advance, all reasonably available information, both general and specific, about the company. developing, in advance, a general outline of the kinds of information sought; gathering, in advance, all reasonably available information, both general and specific, about the company; and preparing a detailed report of the findings after the visit.

developing, in advance, a general outline of the kinds of information sought; and gathering, in advance, all reasonably available information, both general and specific, about the company. developing, in advance, a general outline of the kinds of information sought; gathering, in advance, all reasonably available information, both general and specific, about the company; and preparing a detailed report of the findings after the visit.

When cross-functional teams are used to conduct research, it is best if: -no member is stronger than any other, and the leadership role is rotated. -the team has total autonomy to decide objectives and set expectations. -each member's job is rearranged to allocate time and resources for team work. -team members are randomly selected from departments. -performance evaluation and reward systems foster individual contributions.

each member's job is rearranged to allocate time and resources for team work.

When purchasing logistics or transportation modes, which of the following are true? -environmental impact of various modes of transportation differs greatly. -the risk of loss or damage for most modes is high. -most transportation modes are relatively inexpensive today. -The reliability of water and pipeline transportation modes is comparable.

environmental impact of various modes of transportation differs greatly.

Research on the supply management process focuses on: -increasing efficiency by eliminating unnecessary steps. -improving buyer-seller relationships. -conducting cost analysis to identify unnecessary costs. -deciding whether to single or multiple source. -developing a strategy to reduce cost or ensure supply.

improving buyer-seller relationships.

Measurement challenges for internal validation of supply savings include: -inability to convert savings into profit. -changes in markets, technologies and volumes. -willingness to recognize cumulative savings. -inability to convert savings into profit and changes in markets, technologies and volumes. -inability to convert savings into profit, changes in markets, technologies and volumes and willingness to recognize cumulative savings.

inability to convert savings into profit and changes in markets, technologies and volumes.

Supply chain management is: -externally focused from supply management to suppliers -externally focused from supply management to suppliers, and from suppliers to their suppliers. -internally focused to align with other functions and externally focused upstream through the supplier network and downstream through the customer network. -internally focused from supply management to internal users/customers. -internally focused from supply management to senior management.

internally focused to align with other functions and externally focused upstream through the supplier network and downstream through the customer network.

In the portfolio matrix, characteristics of goods and services in the bottleneck quadrant are: -item substitution and switching are difficult, but many available suppliers can meet the technical or capacity needs. -item substitution and supplier switching are possible, and several sources of supply are readily available. -item substitution and supplier switching are difficult because few suppliers are available with the capability to meet the unique specification requirements. -substitution is possible, but switching suppliers is difficult even though many suppliers are available. -substitution and supplier switching are relatively easy, but few suppliers have the technical expertise.

item substitution and supplier switching are difficult because few suppliers are available with the capability to meet the unique specification requirements.

Research on the "dark side of buyer-supplier relationships" has identified the following potential problem(s) with overcommitting to supplier partnerships in the long-term: -loss of objectivity. -ineffective decision making. -costly investments. -loss of objectivity and ineffective decision making. -loss of objectivity, ineffective decision making and costly investments.

loss of objectivity, ineffective decision making and costly investments.

Which of the following is NOT true regarding "informal" bid solicitation in the public purchasing context? -Low value items -Limited number of solicited bids -Must be accurate records -All essential steps are used in the bidding process -none of the above - because all of the above are true.

none of the above - because all of the above are true.

According to the UCC, an oral agreement: -is never legally binding. -normally must include some written notation if the price of the order exceeds the limit established by the statute of frauds. -may be revoked if the buyer sends a notice of objection within 30 days of receipt of the goods. -that is partially performed (for example, one of ten lots is delivered) is automatically canceled under the doctrine of force majeure. -is not valid unless and until some form of documentation is signed by both parties.

normally must include some written notation if the price of the order exceeds the limit established by the statute of frauds.

The legal issues of who actually owns intellectual capital are: -of great concern to creators of intellectual capital, but few other people. -of little concern because international intellectual property laws already apply. -of great concern globally because there is no uniform body of law. -are eased by advancements in the duplication and transfer of information. -have been eased by the passage of World Trade Organization directives.

of great concern globally because there is no uniform body of law.

When comparing public versus private purchasing, which of the following is false? -public purchasing has more room for creative procurement. -public organizations are generally not 'profit' oriented, whereas private ones generally are profit oriented. -regulations govern both private and public purchasing, but in general, there public purchasing is more highly regulated. -public purchasing typically publishes purchasing awards, while private organization generally don't make their purchasing contracts public information.

public purchasing has more room for creative procurement.

Supply management's role in sustainability initiatives includes: -substituting renewable energy for carbon-based energy. -accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor. -eliminating waste anywhere in the supply chain. -setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities. -substituting renewable energy for carbon-based energy, accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor, eliminating waste anywhere in the supply chain and setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities.

substituting renewable energy for carbon-based energy, accountability for the social practices of their suppliers, including worker safety, payment of living wages, and child labor, eliminating waste anywhere in the supply chain and setting clear standards for suppliers related to social conditions in their plants and subcontracting facilities.

Arguments that favor single sourcing include: -the order is small. -to obtain greater flexibility. -deliveries are easier to schedule and are most cost efficient. -the order is small and to obtain greater flexibility.

the order is small and to obtain greater flexibility.

When purchasing from offshore suppliers, buyers might expect delays resulting from: -transportation in the supplier's country. -domestic customs clearance. -the time the goods are in port. -transportation in the supplier's country and domestic customs clearance. -transportation in the supplier's country, domestic customs clearance and the time the goods are in port.

transportation in the supplier's country, domestic customs clearance and the time the goods are in port.

Special economic zones of China (SEZs): -are located in Hong Kong -use tax and business incentives to attract foreign investment and technology as a means of supporting economic growth. -allow foreign and domestic trade and investment to be conducted, with the authorization of the Chinese central government. -are located in Hong Kong and use tax and business incentives to attract foreign investment and technology as a means of supporting rapid economic growth. -are located in Hong Kong, use tax and business incentives to attract foreign investment and technology as a means of supporting rapid economic growth and allow foreign and domestic trade and investment to be conducted, with the authorization of the Chinese central government.

use tax and business incentives to attract foreign investment and technology as a means of supporting economic growth.

Buyers' perception of risk in supplier selection decisions: -are generally the same for A, B, and C items. -are generally the same for strategic and non-strategic items. -are generally the same for new and current suppliers of the same items. -vary depending on the level of customization of product or service. -vary depending on the level of data available in each case.

vary depending on the level of customization of product or service.

When there are no liens against the goods and no violation of a patent, there is a(n): -warranty of title and against infringement. -express warranty. -implicit warranty. - implied warranty of merchantability. -implied warranty of fitness for a particular purpose.

warranty of title and against infringement.

When there are no liens against the goods and no violation of a patent, there is a(n): -warranty of title and against infringement. -express warranty. -implicit warranty. -implied warranty of merchantability. -implied warranty of fitness for a particular purpose.

warranty of title and against infringement.

Social sustainability issues in supply management include: -hazardous waste disposal. -bribery of local government officials. -worker safety. -hazardous waste disposal and bribery of local government officials. -hazardous waste disposal, bribery of local government officials and worker safety.

worker safety