1. A contract is a unilateral, binding document that obligates the seller to furnish supplies or services to the buyer. A. False
2. All of the following accurately describe the features and characteristics of a contract EXCEPT: A. The project organization is always a buyer in a contract arrangement
3. All of the following statements accurately describe supply chain management EXCEPT: A. It is a closed-loop system solely within the project organization’s boundaries.
4. Contract incentives are often used when the buyer wants the seller to meet some defined project metrics, such as finishing the project early, providing a higher level of quality or more features, or anything else that the buyer wants to maximize and is willing to pay for. A. True
5. During procurement planning, the project team determines which needs can best be met by acquiring products and services from an outside provider, and which can be accomplished by the team. A. True
6. Fixed price contracts provide low risk for the seller, since the buyer will pay a fixed price, regardless of how much the project actually costs the seller. A. False
7. In many cases, the proposal prepared by the vendor becomes a part of the final contract. A. True
10. Often a project team will start the selection process by establishing a list of potential suppliers. All of the following information sources are frequently used to identify these potential suppliers EXCEPT: A. stakeholder register
11. On complex projects, despite the importance of factors such as technical capability, managerial capability and previous experience; the selection decision is made mostly or entirely A. False
12. One of the important factors that should influence the selection of contract type is how the risk is distributed between the buyer and the seller, and how the project is performed. A. True
13. Outputs of Plan Procurement Management include the procurement management plan and procurement statement of work. A. True
14. Project partnerships can be advantageous to both the client and the vendor, in terms of improved project execution, flexibility, and reduced bid administration. A. True
16. Project partnerships offer all of the following advantages to vendors EXCEPT: A. Buyer gains at the vendor’s expense
17. Supply chain operations require managerial processes that span across functional areas within individual organizations, and link trading partners and customers across organizational boundaries. A. True
20. The ________ documents the portion of work to be purchased, in enough detail so potential suppliers can decide if they feel they are capable of and interested in providing it. A. procurement statement of work
21. The procurement management plan: A. describes how a project team will acquire goods and services from outside the performing organization.
22. Under normal conditions, which of these contract types poses the greatest risk to the buyer? A. Cost-Plus-Fixed-Fee (CPFF)
23. Which of the following is one of the PMBOK Guide’s three project procurement management processes? A. Conduct procurements
24. Which of the following types of contracts involves payment to the seller for the seller’s actual approved costs of completed work, plus A. cost-reimbursable contract
25. Which of the following types of contracts involves payment to the seller for the seller’s actual approved costs of completed work, plus a fee typically representing the seller’s profit? A. cost-reimbursable contract
26. Which party to a contract absorbs the majority of cost risk when a Firm-Fixed-Price (FFP) contract is used? A. the seller
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