L4M3 practice questions, page 2 of 3, with answer review and explanations.
Question 6
Which of the following key performance indicators would be effective instruments to monitor the financial administrative performance of a supplier? (Choose two.)
Average user satisfaction score
Percentage (%) product compliance to specification
Accuracy of invoices
Number of health and safety incidents
Credit note volumes per month
Question 7
Company A sends a purchase order complete with a set of conditions of contract for the provision of professional services to Company B. Company B responds with an invoice complete with a set of its own conditions of contract. Company A pays the invoice. Which conditions of contract takes legal precedence?
Company A’s
Company B’s
Neither Company A’s or Company B’s
Both Company A’s and Company B’s
Question 8
A construction company has been awarded a contract where the pricing is based on how quickly it completes the work. What type of pricing agreement is this?
Variable
Fixed price
Incentivised
Cost plus
Question 9
David placed an order with a supplier. His company terms and conditions were on the back of the order. The supplier then sent an order acknowledgement to David with their terms and conditions on. This is known as ‘battle of the forms.’ Which of the following would be best practice and help prevent this happening and protect David and his business?
Return the order acknowledgement to the supplier
Send multiple copies of the purchase order to the supplier
Negotiate and sign a contract or framework with the supplier
Throw away any paperwork that you receive from the supplier
Question 10
An invitation to treat is a willingness to receive an order. Is this statement TRUE or FALSE?
True, because it is an acceptance of contract terms
True, because it is an acceptance of an offer
False, because it is preparedness to negotiate a contract
False, because it is a requirement to provide a price