L3M3 Contract Administration Recap Week 5

Revenue-earning possibilities which are foregone as a result of implementing a plan; the cost of not doing something else

• Opportunity cost

• Overhead cost

• Indirect cost

• Absorption cost

Transfer of the rights and obligations of a contract onto a third party, is called:

• Acceptance

• Association

• Assignment

• Assignation

Which of the following would be unethical? Choose two.

• To place business with a company in which your sister works, having been instructed in writing to do so by your line manager

• To request quotations from several suppliers if the buyer has already decided where the contract will be awarded

• To negotiate with suppliers

• To request quotations if the buyer has no intention to purchase

Contracts published by third party experts such as trade associations or professional bodies, widely regarded as favouring neither buyer nor seller, are called:

• Good form

• Trans form

• Paper form

• Uni form

• Model form

The expression ‘consideration’ means:

• Being over 18 and being of sound mind

• Some form of valuable exchange

• Taking time to think about the gravity of the contract you may be about to be entering into

• Being nice to people, in the expectation that they in turn will be nice

In legal circles, ownership of something is often called:

• Title

• Tittle Tattle

• Total

• Tithe

A purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms on which they will supply specified goods or services which, on acceptance, shall be the basis of the subsequent contract

• Expression of interest

• Competitive dialogue

• Invitation to tender

• Request for information

Johnson, Scholes and Whittington suggested three key criteria for options which can be used in the evaluation of a business case. Which word was not one of these three key criteria?

• Transferability

• Feasibility

• Acceptability

• Suitability

The price at which suppliers wish to sell and buyers wish to buy; and the market clears, is called the

• Polyvalent price

• Opprobrium price

• Closing price

• Equilibrium price

In which year did the United Nations issue the Universal Declaration of Human Rights?

• 1919

• 1941

• 1948

• 2001