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  1. Home
  2. CIPS Certification
  3. L3M2 Exam
  4. CIPS.L3M2.v2024-08-10.q33 Dumps
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Question 6

The abbreviation 'KPI' stands for:

Correct Answer: D
Key personnel insurance
Explanation:
Key performance indicator, designed to monitor a small number of critically-important aspects of supplier performance, indicated within a contract or a service level agreement as part of a contract.
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Question 7

Where performance of the contract may be impossible because of external unforeseen factors, this may be called:

Correct Answer: A
A force majeure clause in a contract may give rights to either party to suspend its obligations in the event of something untoward happening which is outside the control of the parties.
Examples might volcanic dust clouds, tidal waves or a pandemic. Often lesser events trigger (or are used to try to trigger) the use of such a clause.
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Question 8

Select the two words which explain least well why the procurement of services can be more chal-lenging than the procurement of physical products:

Correct Answer: A,D
The correct answers to the question are: 'unimaginable' and 'permeable'. 'Permeable' makes no sense here; and it is possible to imagine both physical products and services.
The other four answers are distinguishing features of services, which result in services being more challenging to buy.
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Question 9

A margin within which a specification can vary slightly - the outer limits of what is acceptable to the buyer - can be described as:

Correct Answer: C
The correct answer is 'tolerances'. The tighter the tolerance ie the more restrictive the specification, the more challenging for a supplier to deliver, and the more costly it is likely to become.
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Question 10

An internet-based auction between competing sellers or suppliers in real time, is called a:

Correct Answer: C
Reverse e-auction.
This term is used in your syllabus.
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