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NEW QUESTION 25
Which of the following is not a type of tender process used in the Public Sector?
- A. Competitive Dialogue
- B. Competitive Procedure with Negotiation
- C. Unrestricted
- D. Restricted
Answer: C
Explanation:
Unrestricted is not a type of tender. The 5 types are; open, restricted, competitive with negotiation, competitive dialogue and innovative partnership (though this last one is very rare in the public sector). The five types are explained in detail on p.77
NEW QUESTION 26
In a monopoly market, which of the following statements is true?
- A. There is strong rivalry
- B. bargaining power of suppliers is strong
- C. bargaining power of buyers is strong
- D. There is a threat of new entrants
Answer: B
Explanation:
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39
NEW QUESTION 27
Debbie is a procurement manager at a small manufacturer company. She had a contract in place with a company that provides uniforms, but finds that she doesn't need to order much from them as the staff re-wear the same clothes to work. The contract has now expired. Should Debbie do a Competitive Tender to source a new contract?
- A. No- Debbie should continue using the same supplier- it doesn't matter that the contract has expired.
- B. Yes- competitive tender is the only option to procure uniforms
- C. Yes - the contract has now expired so she must do a new competitive tender
- D. No- the contract is not of significant value
Answer: D
Explanation:
The correct answer is 'no-the contract is not of significant value'. CIPS state that competitive tenders should only be used when 'the item or service is of significant value' p.73. Debbie could continue using the same supplier, but she should organise a contract extension or a new contract if she does.
NEW QUESTION 28
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