Question 1

Which of the following is a distinct phase of the outsourcing process?

Accepted Answer

A)  The planning phase. 
B)  The operation phase. 
C)  The evaluation phase. 
D)  The withdrawal phase. 
A)  The planning phase. 
B)  The operation phase. 
C)  The evaluation phase. 
D)  The withdrawal phase. B

Question 2

Who should manage outsourcing processes and projects?

Accepted Answer

A)  Business Managers. 
B)  Consultants. 
C)  Procurement managers. 
D)  Accountants. 
A)  Business Managers. 
B)  Consultants. 
C)  Procurement managers. 
D)  Accountants. A

Question 3

Which of the following best explains a 'technical risk'?

Accepted Answer

A)  The potential for machinery to breakdown. 
B)  The extent to which the supplier has a history of success. 
C)  Workplace hazards. 
D)  The extent to which the provider is able to provide the desired functionality and performance. 
A)  The potential for machinery to breakdown. 
B)  The extent to which the supplier has a history of success. 
C)  Workplace hazards. 
D)  The extent to which the provider is able to provide the desired functionality and performance. D

Question 4

Which of the following are contained in a 'risk assessment matrix'?

Accepted Answer

A)  Financial impact and likelihood of occurrence. 
B)  Financial impact and profitability. 
C)  Likelihood of occurrence and timescales. 
D)  Likelihood of occurrence and location. 
A)  Financial impact and likelihood of occurrence. 
B)  Financial impact and profitability. 
C)  Likelihood of occurrence and timescales. 
D)  Likelihood of occurrence and location.

Question 5

Which of the following best explains the concept of 'offshoring'?

Accepted Answer

A)  Transferring activities that were previously conducted in-house, to a third party. 
B)  Transferring activities that were previously conducted in-house, to a provider in a low-cost country. 
C)  Transferring activities that were previously externally, to another third party. 
D)  Transferring activities from one section of the organization to another. 
A)  Transferring activities that were previously conducted in-house, to a third party. 
B)  Transferring activities that were previously conducted in-house, to a provider in a low-cost country. 
C)  Transferring activities that were previously externally, to another third party. 
D)  Transferring activities from one section of the organization to another.

Question 6

What is the most important issue in contract negotiations?

Accepted Answer

A)  The price. 
B)  The quality. 
C)  The contract. 
D)  Delivery dates. 
A)  The price. 
B)  The quality. 
C)  The contract. 
D)  Delivery dates.

Question 7

Which of the following best explains the concept of 'partial outsourcing'?

Accepted Answer

A)  Transferring part of an integrated function previously conducted in-house, to a third party. 
B)  Transferring activities to a third party. 
C)  Transferring activities that were previously externally, to another third party. 
D)  Transferring activities from one section of the organization to another. 
A)  Transferring part of an integrated function previously conducted in-house, to a third party. 
B)  Transferring activities to a third party. 
C)  Transferring activities that were previously externally, to another third party. 
D)  Transferring activities from one section of the organization to another.

Question 8

Which of the following is not an element in the project execution stage of outsourcing?

Accepted Answer

A)  Contract negotiation. 
B)  Order issue. 
C)  Confidentiality agreement. 
D)  Kick-off meeting. 
A)  Contract negotiation. 
B)  Order issue. 
C)  Confidentiality agreement. 
D)  Kick-off meeting.

Question 9

Which of the following is an option when outsourcing?

Accepted Answer

A)  To collaborate and maintain control. 
B)  To do nothing. 
C)  To consult staff. 
D)  To visit suppliers. 
A)  To collaborate and maintain control. 
B)  To do nothing. 
C)  To consult staff. 
D)  To visit suppliers.

Question 10

Which of the following is a distinct phase of the outsourcing process?

Accepted Answer

A)  The withdrawal phase. 
B)  The tactical phase. 
C)  The evaluation phase. 
D)  The transition phase. 
A)  The withdrawal phase. 
B)  The tactical phase. 
C)  The evaluation phase. 
D)  The transition phase.

Question 11

Which of the following is a distinct phase of the outsourcing process?

Accepted Answer

A)  The strategic phase. 
B)  The tactical phase. 
C)  The evaluation phase. 
D)  The withdrawal phase. 
A)  The strategic phase. 
B)  The tactical phase. 
C)  The evaluation phase. 
D)  The withdrawal phase.

Question 12

Which of the following is an advantage of outsourcing?

Accepted Answer

A)  Increased dependence of suppliers. 
B)  The risk of leakage of confidential information. 
C)  Increased flexibility. 
D)  Risk of losing essential strategic knowledge. 
A)  Increased dependence of suppliers. 
B)  The risk of leakage of confidential information. 
C)  Increased flexibility. 
D)  Risk of losing essential strategic knowledge.

Question 13

Which of the following best explains a 'commercial risk'?

Accepted Answer

A)  The potential for machinery to breakdown. 
B)  The extent to which the supplier has a history of success. 
C)  The uncertainty with regard to the price to be paid and the costs incurred. 
D)  The extent to which the provider is trustworthy. 
A)  The potential for machinery to breakdown. 
B)  The extent to which the supplier has a history of success. 
C)  The uncertainty with regard to the price to be paid and the costs incurred. 
D)  The extent to which the provider is trustworthy.

Question 14

Which of the following should be a feature of an Outsourcing Agreement?

Accepted Answer

A)  Term of the agreement. 
B)  Supply dates. 
C)  Quality assurances. 
D)  Independent evaluation. 
A)  Term of the agreement. 
B)  Supply dates. 
C)  Quality assurances. 
D)  Independent evaluation.

Question 15

Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?

Accepted Answer

A)  It should be measurable. 
B)  It should not reflect the overall business goals. 
C)  It should allow for the supplier to make changes to the SLA. 
D)  It should not contain details on actions if service levels are not achieved. 
A)  It should be measurable. 
B)  It should not reflect the overall business goals. 
C)  It should allow for the supplier to make changes to the SLA. 
D)  It should not contain details on actions if service levels are not achieved.

Question 16

Which of the following best explains the concept of 'outsourcing'?

Accepted Answer

A)  Transferring activities that were previously conducted in-house, to a third party. 
B)  Transferring activities to a third party. 
C)  Transferring activities that were previously externally, to another third party. 
D)  Transferring activities from one section of the organization to another. 
A)  Transferring activities that were previously conducted in-house, to a third party. 
B)  Transferring activities to a third party. 
C)  Transferring activities that were previously externally, to another third party. 
D)  Transferring activities from one section of the organization to another.

Question 17

Which of the following is not a risk factor?

Accepted Answer

A)  Unavailability of qualified staff. 
B)  Independent evaluation. 
C)  Occurrence of unforeseen disputes. 
D)  Change of key management positions. 
A)  Unavailability of qualified staff. 
B)  Independent evaluation. 
C)  Occurrence of unforeseen disputes. 
D)  Change of key management positions.

Question 18

Which of the following best explains 'capacity-related outsourcing'?

Accepted Answer

A)  The company has insufficient capacity to undertake the required activity. 
B)  The company does not have the expertise to perform the required activity. 
C)  The company cannot deliver the required <quality in the required activity. 
D)  The company does not have the money to carry out the required activity. 
A)  The company has insufficient capacity to undertake the required activity. 
B)  The company does not have the expertise to perform the required activity. 
C)  The company cannot deliver the required <quality in the required activity. 
D)  The company does not have the money to carry out the required activity.

Question 19

Which of the following is not an element in the audit and approval stage of outsourcing?

Accepted Answer

A)  Market research. 
B)  Detailed audit. 
C)  Confidentiality agreement. 
D)  Approved supplier list. 
A)  Market research. 
B)  Detailed audit. 
C)  Confidentiality agreement. 
D)  Approved supplier list.

Question 20

Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?

Accepted Answer

A)  It should never be updated. 
B)  It should reflect the overall business goals. 
C)  It should allow for the supplier to make changes to the SLA. 
D)  It should not contain details on actions if service levels are not achieved. 
A)  It should never be updated. 
B)  It should reflect the overall business goals. 
C)  It should allow for the supplier to make changes to the SLA. 
D)  It should not contain details on actions if service levels are not achieved.

Which of the following is a distinct phase of the outsourcing process?

Who should manage outsourcing processes and projects?

Which of the following best explains a 'technical risk'?

Which of the following are contained in a 'risk assessment matrix'?

Which of the following best explains the concept of 'offshoring'?

What is the most important issue in contract negotiations?

Which of the following best explains the concept of 'partial outsourcing'?

Which of the following is not an element in the project execution stage of outsourcing?

Which of the following is an option when outsourcing?

Which of the following is a distinct phase of the outsourcing process?

Which of the following is a distinct phase of the outsourcing process?

Which of the following is an advantage of outsourcing?

Which of the following best explains a 'commercial risk'?

Which of the following should be a feature of an Outsourcing Agreement?

Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?

Which of the following best explains the concept of 'outsourcing'?

Which of the following is not a risk factor?

Which of the following best explains 'capacity-related outsourcing'?

Which of the following is not an element in the audit and approval stage of outsourcing?

Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 8: Outsourcing and Risk Management

Which of the following is a distinct phase of the outsourcing process?

Who should manage outsourcing processes and projects?

Which of the following best explains a 'technical risk'?

Which of the following are contained in a 'risk assessment matrix'?

Which of the following best explains the concept of 'offshoring'?

What is the most important issue in contract negotiations?

Which of the following best explains the concept of 'partial outsourcing'?

Which of the following is not an element in the project execution stage of outsourcing?

Which of the following is an option when outsourcing?

Which of the following is a distinct phase of the outsourcing process?

Which of the following is a distinct phase of the outsourcing process?

Which of the following is an advantage of outsourcing?

Which of the following best explains a 'commercial risk'?

Which of the following should be a feature of an Outsourcing Agreement?

Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?

Which of the following best explains the concept of 'outsourcing'?

Which of the following is not a risk factor?

Which of the following best explains 'capacity-related outsourcing'?

Which of the following is not an element in the audit and approval stage of outsourcing?

Which of the following should be a feature of an Outsourcing Service Level Agreement (SLA)?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Logistics and Supply Chain Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters