Sourcing and Procurement WebXam Review

Which of the following best defines "procurement" in a business context?

• The process of selling finished goods to customers

• The process of obtaining goods and services from external sources

• The process of manufacturing products in-house

• The process of advertising products

What is the primary difference between purchasing and sourcing?

• Purchasing focuses on finding suppliers, while sourcing is about paying invoices

• Sourcing is about identifying suppliers, while purchasing is about buying from them

• Purchasing and sourcing are exactly the same

• Sourcing is only used in retail businesses

Which of the following is a potential local source for materials or services?

• An overseas manufacturer

• A nearby supplier or vendor

• An online international marketplace

• A government agency in another country

Which of the following is a possible impact of using global sources for procurement?

• Increased local employment

• Longer lead times and potential shipping delays

• Reduced need for quality control

• Elimination of customs regulations

What is the first step in the bid or contracting process?

• Selecting a vendor

• Reviewing bids

• Creating bid specifications

• Signing the contract

How can the bid or contracting process impact business objectives?

• By ensuring the lowest price is always chosen

• By aligning supplier selection with company goals and requirements

• By avoiding all legal requirements

• By eliminating the need for negotiation

Why is negotiating vendor contracts important for a business?

• It ensures the business always pays more

• It helps secure favorable terms and services

• It eliminates the need for future communication

• It guarantees immediate delivery

Which of the following is a method for monitoring vendor performance?

• Ignoring supplier activities

• Using supplier scorecards

• Only communicating during emergencies

• Relying solely on verbal agreements

Which strategy can help control expenses in procurement?

• Increasing the use of supplies

• Developing and following budgets

• Ignoring overhead costs

• Avoiding contract negotiations

How can operational objectives be incorporated into the procurement process?

• By focusing only on price

• By including supplier diversity initiatives and regulatory compliance

• By ignoring supply chain management goals

• By avoiding all documentation