Name: _____________________________________________________ Score:____________

1. It is simply the rules and regulations that are set in place to govern the process of acquiring goods
and services needed by an organization to function efficiently.
A. Make-or-buy policy
C. Purchasing approach
B. Procurement policy
D. In-source-or-outsource decision
2. I. The company should outsource if the good is critical to the products success.
II.
One factor which favors purchasing from outside is lack of expertise.
A. Both statements are true.
C. Only statement I. is correct.
B. Both statements are false.
D. Only statement II. is correct.
3. Which of the following is not relevant to a make or buy decision?
A. Direct cost
C. Depreciation expense
B. Supervisor's salary
D. Worker's salary
4. If the avoidable cost in the make analysis is less than the cost of buy analysis, what should we do?
A. Outsource
C. Both A and B
B. Make it in-house
D. Do nothing
5. It is the process of identifying selecting and contracting with suppliers.
A. Vending Selection
C. Customer Selection
B. Supplier Selection
D. Manager Selection
6. The primary goal of thinking strategically in selecting supplier is to reduce suppliers
A. Non-performance
C. Non-conformity
B. Late Delivery
D. All of the above
7. This is one of carters 10 Cs of Supplier Evaluations which mean is the financial standing of the
supplier. Are they in a robust position or are they teetering on the edge of financial meltdown?
Obviously the more robust that a supplier is, the better they will be place to withstand any economic
storms.
A. Cash
C. Capacity
B. Cost
D. Control
8. The following are Carters 10 Cs of Supplier Evaluation except:
A. Competency
C. Culture
B. Communication
D. Capability
9. What is the proper sequence of the steps in creating a procurement policy?
I.
Declare how all the processes have to be carried out.
II.
Present the policy to all parties involved.
III.
Formulate all the findings and plans into one document.
IV.
The company implements and follows the procurement policy throughout all the procurement
process.
V.
Have the company board sign it.
A. III, II, I, V, IV
C. III, I, II, V, IV
B. III, II, V, I, IV
D. III, I, V, II, IV
10. There is a direct relationship between these three departments. Now, what is their coordinating
sequence in a manufacturing company?
A.
B.
C.
D.

Procurement -> Production -> Sales

Sales -> Production -> Procurement
Procurement -> Sales -> Production
Sales -> Procurement > Production

11.
12.
13. Why are small and medium sized businesses at a disadvantage in conforming with the market rate
pay?
A. Due to the uniqueness of job, it is difficult to determine the suitable pay.
B. Small and medium-sized business are at a disadvantage with regards to financial resources.
C. Determining the prevailing market pay rate is costly for small and medium sized businesses.
D. All of the above

14. Which of the following is false?

A. The compensation package must be strategically based.
B. It is important to analyze not only the compensation packages of other companies, but also the
responsibilities and jobs to be performed by the employees in the future.
C. It is important to include rewards in the compensation package as well as recognize potential in
order to motivate the employees.
D. All statements are true.
15. A __________ should be an incentive for the employees to fulfill companys goal.
A.
Health plan
C. Compensation plan
B.
Future plan
D. St. Peters Plan
16. Which of the following is not a step to develop a compensation plan?
A. Research the options
B. Determine your companys mission
C. Offer a compensation plan that includes a mix of benefits
D. Dont be too generous with your compensation plan
17. It involves complex relationship between workers and employers within an industry, as well as the
government and government agencies regulating the industry.
A. Employee-employer relationships
C. Industrial relations
B. Union
D. Labor force coalition
18. It is the most important benefit of industrial relations that ensures continuity of production.
A. Reduction in industrial disputes
C. Reduced wastage
B. Uninterrupted production
D. Mental revolution
19. Core principle of industrial relations theory that establish a power hierarchy in which those at the top,
control those below-a bit like a government but without an actual government
A. Dominance
B. Reciprocity
C. Identity
D. None of the above
20. Core principle of industrial relations theory that rewards behavior which contributes to the group and
punishing behavior that pursues self-interest at the expense of the group.
A. Dominance
B. Reciprocity
C. Identity
D. None of the above