L4M4

L4M4 practice questions, page 2 of 2, with answer review and explanations.

Question 6

When might a company send a request for information (RFI) to a supplier instead of an RFQ? (Choose two.)

  1. To obtain indicative prices that could be offered for a range of required products
  2. To negotiate the payment terms detailed in the terms and conditions of sale
  3. To ask for the details of the product or the range of services that the supplier has to offer
  4. To establish the details of environmental and quality certificates that the supplier may have
  5. To determine whether the supplier is able to fulfill a purchase order that has already been placed

Question 7

Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms.Is this a valid approach?

  1. No, ESG is not within the scope of a contractual document and should always be treated informally
  2. No, suppliers cannot be legally responsible for ESG compliance, this should be the buying organization
  3. Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously
  4. Yes, this helps to demonstrate the importance of compliance to ESG

Question 8

What might a buyer encounter if the supplier’s government has introduced a protectionist measure?

  1. Inward processing relief
  2. Arbitration
  3. Import duties
  4. Carnets

Question 9

One of the typical selection criteria applied in determining the right supplier is ‘technical capabilities’, which might include __________.

  1. the supplier’s ability to produce all of the required quantities and maintain contingency stocks
  2. the supplier’s ability to keep its plant and machinery in a high state of repair and maintenance
  3. the supplier’s financial ratios, revealing that they are very ‘highly geared’
  4. the supplier’s brand name is highly reputed for being associated with ‘Ethical Trading Initiative’