LEAD

LEAD practice questions, page 4 of 7, with answer review and explanations.

Question 16

FGH, Inc. is finalizing a contract to have its head office refurbished and its electrical wiring drawings updated. FGH budgets $2.2 million for the project, including a general risk fund of $75,000. The contractor’s total bid is $2 million, including $50,000 for updating electrical wiring drawings and $200,000 for the contractors’ risk fund-half of which is for building related issues and the other half of which is for electrical issues. If FGH wishes to assume the risk of electrical issues, what will be the risk fund of FGH and how much will be paid to the contractor?

  1. $125,000 for the risk fund; $2.2 million to the contractor
  2. $75,000 for the risk fund; $2 million to the contractor
  3. $225,000 for the risk fund; $1.85 million to the contractor
  4. $175,000 for the risk fund; $1.9 million to the contractor

Question 17

Cross-functional teams are MOST likely to lack effectiveness for which of the following reasons?

  1. Ill-equipped staff
  2. Limited joint accountability
  3. Lack of executive support
  4. Insufficient buy-in

Question 18

To remain competitive in the business environment, a supply management department mission should be

  1. marketing-focused
  2. technically-focused
  3. task-oriented
  4. proactive

Question 19

The supply management department of a large manufacturer selects an applicant who uses a wheelchair as a finalist for a new position. Which of the following should the firm do FIRST before further consideration of this applicant?

  1. Ensure the workplace environment presents no hazards
  2. Identify the costs of any adaptive equipment the applicant might require
  3. Review the essential functions of the position as detailed in the job description
  4. Check the applicant’s references to learn how previous employers handled any special needs

Question 20

A private school with multiple campuses is looking to hire an organization-wide supply manager. There is considerable discussion about whether the school should advertise within the supply management department only or open applications to the entire organization. Which of the following is the BEST justification for the school to recruit beyond supply management?

  1. Administrative expertise is transferable from one specialty to another.
  2. Management experience in related areas may bring a broader perspective.
  3. Competition within supply management might create jealousy or resentment.
  4. Specific supply management skills can be learned through professional development.