L3M1 Exam Questions & Answers
Procurement and Supply Environments • CIPS
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Sample L3M1 Questions
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Which of the following could be part of STEEPLED?
Select all that apply.
Social and technological are part of STEEPLED: they were also part of PEST, the forerunner to STEEPLED.
The other two words shown as possible answers are included because they sound a bit like 'econom-ic' and 'demographic', which would also be correct answers, had they been included here.
Read the QUESTION NO : carefully.
The total variety of life on Earth' is CIPS' definition of:
Biodiversity is significantly under threat, with many species being lost almost daily on Earth.
The other answers given in response to this QUESTION NO :, whilst they can be seen as being broadly relat-ed do not fit the bill precisely.
The BBC's one-hour documentary (2020) 'Extinction - The Facts' explains in all-too-chilling detail the meaning of biodiversity, and is recommended viewing for all.
Which of the following are normally not a source of funds for a third sector organisation?
Third sector organisations often rely on charitable contributions. An example might be Medecins Sans Frontieres.
They also sometimes receive grants from taxpayers, sometimes in return for work done eg the chari-ty Barnardo's receive government funding in return for advising the British government on man-agement of some children in its care.
Finally some NFPs have, for example, retail outlets which generate income to aid the organisation. Oxfam is such an example.
Third sector can be expected to ster clear of certain areas for ethical reasons. Alcohol, gambling, to-bacco, and weapons are examples.
Which of the following is likely to reduce 'capital growth'? Select all that apply.
Payment of high salaries and large allowances, may, fairly obviously reduce the amount of profit which can be retained for capital growth. If money is being distributed in this way, it isn't being re-tained.
A profitable company has a choice: to pay dividends to a greater or lesser extent; or retain some of its profits to a greater or lesser extent in the form of retained capital - capital growth.
Increased sales and increased profit may result in increased capital growth, all other things being equal, depending on the firm's dividend policy.
An arrangement between a buyer and a supplier in which they agree to apportion benefits (such a reduced costs, or increased outputs) arising from particularly sound contract performance may be called:
There is an expression 'painshare' which is an almost-ironic term referring to the opposite of the situ-ation described in the QUESTION NO : - when something has gone wrong, and the additional cost must be shared between the parties. The other two answers are a little bit facetious.
The correct answer is 'gainshare' when the parties share benefits, according to a pre-agreed ratio or formula.
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