L3M3 Exam Questions and Answers | Exam-Dumps (Page: 3)

QUESTION: 11

Transfer of the rights and obligations of a contract onto a third party, is called:

Assignment
Association
Acceptance
Assignation

Answer(s): A

Explanation:

Essentially the contract is now between two different parties because one party has assigned the contract to someone else.

It's always a good idea to check whether this is permitted under a contract, otherwise you might finish up doing business with someone you didn't plan to do business with.

Reveal Solution Next Question

QUESTION: 12

Which of the following are internal factors in supplier decision-making? Choose two.

Extent of competition in the marketplace
Cost of production
Shareholder and managerial expectations of profit
Customer perceptions of value

Answer(s): B,C

Explanation:

Cost of production, and shareholder and managerial expectations of profit, are both internal factors in decision-making. Although shareholders may be outside the firm, management will condition shareholders' expectations. Customer perception of value and the extent of marketplace competition are significantly outwith the control of the company.

Reveal Solution Next Question

QUESTION: 13

Which of the following would not normally be part of data required by the buying organisation's contract manager?

Other customer data
Technical data
Financial data
Performance data

Answer(s): A

Explanation:

Other customer data.

It would, I think, be very unusual for a contract manager to feel it appropriate to ask for information from a supplier representative about other customers. Business partners normally want their dealings to be private. However, in informal discussions, in the normal course of conversation, information is often transferred in a benign manner.

Reveal Solution Next Question

QUESTION: 14

A justification of an action (expenditure) that is to be taken by an organisation.

Project management
Competitive tender
Business case
Cost analysis

Answer(s): C

Explanation:

The business case will justify the expenditure.

Of the other answers offered, the only one which needs explanation presumably is 'cost analysis'.
This needs to be distinguished from 'price analysis'.

Reveal Solution Next Question

QUESTION: 15

Looking specifically at how a quoted price compares to the cost of production is called:

Factor analysis
Price analysis
Psycho analysis
Cost analysis

Answer(s): D

Explanation:

Comparison of prices across different suppliers would be called 'price analysis'; drilling down into costs of making or doing something would be called 'cost analysis'.

Reveal Solution Next Question

CIPS L3M3 Exam (page: 3) CIPS Contract Administration Updated on: 25-Dec-2025

QUESTION: 11

Explanation:

QUESTION: 12

Explanation:

QUESTION: 13

Explanation:

QUESTION: 14

Explanation:

QUESTION: 15

Explanation:

CIPS L3M3 Exam (page: 3)
CIPS Contract Administration
Updated on: 25-Dec-2025