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| Vendor: | CIPS |
|---|---|
| Exam Code: | L3M1 |
| Exam Name: | Procurement and Supply Environments |
| Exam Questions: | 90 |
| Last Updated: | January 8, 2026 |
| Related Certifications: | Level 3 Advanced Certificate in Procurement and Supply Operations |
| Exam Tags: |
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'In the not-for-profit sector, funding often comes from those who do not benefit directly from the service provision.' True or false?
In the not-for-profit sector, funding often comes from external sources or donors. The beneficiaries of the services are often beneficiaries of services because they don't have funds eg the homeless, the poor, the sick, etc
Thus in this sector, the 'paymaster' is often separated from the recipient of services provided, which has implications for the management of such organisations.
Which is the priority? The one providing funding; or the one receiving the services?
A market situation where there is only one supplier is called:
The correct answer is, of course, 'monopoly'.
'Price' and 'payment terms' are the same thing.
True or false?
An easy question.
Price is what the customer will pay for goods or services eg fifty dollars; payment terms are the ar-rangements under which you pay the price eg in advance, on delivery, 30 days, 60 days, etc.
Although this may seem rather obvious, I have encountered a surprising number of people who seem to confuse the two.
Which one of the following is a document issued by a buyer to conduct an initial assessment of the suitability of a potential supplier for possible future use, either for a specific requirement or to add to a list of approved suppliers?
Pre-qualification QUESTION NO :naire is the correct answer.
A supplier quotation comes from the supplier side; both the RFQ and the ITT are intended to be more formally binding, including the price element, than what is described here.
Shareholders of a limited company are not liable for unpaid debts'. True or false?
This is true: the liability of shareholders is limited to their agreed financial commitment, not beyond that.
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