A buying firm frequently wants the seller to become more dependent on its business.
a. True
b. False
Project scopes should be very detailed for all service providers, including those who
have previously performed work for the organization.
a. True
b. False
_____ means that one party is able to offer something of perceived value to the other
party.
a. Referent power
b. Informational power
c. Expert power
d. Coercive power
e. Reward power
_____ is defined as the submission of a disagreement to one or more impartial persons
with the understanding that the parties will abide by the decision.
a. Negotiation
b. Arbitration
c. Litigation
d. Mediation
e. Authorization
_____ actions and resources are those that create value for the customer.
a. Extras
b. Non-value-adding
c. Necessary non-value-adding
d. Value-adding
e. None of the above.
Which of the following statements regarding countertrade is false?
a. Items involving large dollar amounts, such as military contracts, are prime candidates
for countertrade.
b. Companies can expect countertrade demands from a country when that countrys
goods may have a low or nondifferentiated perception in the world marketplace.
c. Highly valued items or those sought after by the buying country are less susceptible
to countertrade demands.
d. Countertrade may include items that are available from many sources,
commodity-type items, or items not perceived as technologically superior or having
higher quality compared with other available products.
e. Countertrade is a simple process as it avoids currency exchange fluctuations.
A FTZ _____ is approved for a specific use or a specific company.
a. general-purpose zone
b. offset zone
c. subzone
d. CISG
e. None of the above.
_____ is a negotiation tactic that involves one party, often the seller, offering an
unusually low price to receive a buyers business.
a. Low ball
b. High ball
c. Boulwarism
d. Caucus
e. Trial balloon
The caveat to the best and final offer tactic is that the person making the best and final
offer must be prepared to actually end the negotiation if the other party does not accept
the offer.
a. True
b. False
Which of the following is not one of the benefits that the UCC provides to buyers?
a. If a seller makes an offer in writing, the seller has to live up to it for the period of
time stated.
b. Verbal agreements, when confirmed in writing and if no objection is made, are valid.
c. The conflict between a buyers purchase order terms and a sellers acknowledgement
terms will generally be resolved according to the two firms prior conduct.
d. As far as warranties are concerned, the purchasing manager can legally rely on the
supplier to provide the item needed to do the job.
e. None of the above.
Every project must have a scope that succinctly defines the project to help avoid
misunderstandings between the buyer and the service provider.
a. True
b. False
Wall Street recognizes and rewards firms that achieve higher return-on-investment.
a. True
b. False
In negotiation, a/an _____ is a reality or truth that the parties can state and successfully
verify.
a. fact
b. issue
c. position
d. interest
e. BATNA
A firm should not encourage suppliers to report instances of unethical behavior by
anyone within the buying firm.
a. True
b. False
Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk
factor into their price.
a. True
b. False
A/An _____ specifies that the buyer will buy a certain amount of goods and services for
the duration of the agreement.
a. pricing agreement
b. evergreen clause
c. national buying agreement
d. national contract
e. blanket order
_____ occur[s] when either party fails to perform the obligations due under the contract
(without a valid or legal justification).
a. Damages
b. Cancellation
c. Restitution
d. Expectancy
e. Breach of contract
Separation of supply management duties into strategic and tactical job assignments
means that strategic responsibilities are more important.
a. True
b. False
The total cost structure of _____ is similar to _____ as the equipment, rights-of-way,
and physical structure have a high fixed cost and a low variable operating cost.
a. motor carriers¦.air carriers
b. motor carriers¦.pipelines
c. water carriers¦.rail carriers
d. pipelines¦.rail carriers
e. Cannot determine from the above information.
It is far less expensive and more efficient in the long run to avoid generating the defect
in the first place than it is to inspect for it once it is created.
a. True
b. False