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Level 3 Advanced Certificate in Procurement and Supply Operations
QU EST IO
AC1 - Procurement and supply environments
EXAM EXEMPLAR QUESTIONS
PLE
MULTIPLE CHOICE QUESTIONS AND ANSWERS
Page 1 of 6
AC1 Exam Exemplar Questions Mar2013
S IF 20 ICAT 13 IO N
QU AL
SA M
The correct answer will be identified as the [KEY]
Q1 Question
The classical theory of the firm deals with the ‘primary objective’ of commercial organisations.
Which of the following does the theory assume? Answers (a) Their aim is to increase market share
(b) Their aim is to maximise sales
(c) Their aim is to maximise profits [KEY]
(d) Their aim is to maximise stakeholder satisfaction.
Which of the following describes an economic market that is controlled by two main suppliers?
(a) Monopoly
(b) Price competition
(c) Duopoly [KEY]
(d) Perfect competition.
Learning outcome: 2.1
PLE
QU
Answers
SA M
CIPS study guide reference: Chapter 3, section 1.7
AC1 Exam Exemplar Questions Mar2013
Page 3 of 6
Q5 Question
Which of the following explains the term ‘equilibrium price’? Answers (a) The level of price in a market that will be acceptable to customers and shareholders
(b) The level of price in a market that allows a company to recover all its costs
(c) The price at which the level of supply in a market exceeds the level of demand
(d) The price at which the level of supply in a market matches the level of demand. [KEY]