A market situation where there is a small number of large suppliers is called:
A monopoly is a single supplier (or for some authorities where one supplier has control of the market eg 75% market share); a monopsony is a single buyer.
Perfect competition involves many suppliers and many buyers.
The clue here is the 'small number' of suppliers.
'Partnerships are not-for-profit entities'. True or false?
This is simply false. Partnerships are normally unincorporated profit-oriented organisations eg ac-countants, lawyers, many consultancies, some retailers, etc. One significant factor about partnerships is that individuals' capital is normally at risk, unlike in limited companies, where the risk is limited.
The 'five forces' model is also known as an 'Industry Structure Analysis'.
True or false?
This is true. In my view, 'Industry Structure Analysis' is a better term, not only because that is what Michael Porter originally called it, but because it better describes what the model is about. For ex-ample, it reminds us that the model is not about a single firm, but it is about an entire industry, and the structure around that industry.
Which of the following is least risky from the buyer's viewpoint?
Payment (the implication here is 'in full') 60 days after delivery allows the buying organisation time to check the goods carefully, and possibly even use them in that time.
All of the other options would require the buyer to part with money prior to holding the goods, thus exposing that sum to risk. The least risky from the buyer's viewpoint is therefore after 60 days.
Particularly hazardous would be payment at time of order.
Why is procurement governance important?
Select all that apply.
It is important, for the reasons given in the three correct answers.
Which of the following could be described as an organisation?
All except the self-employed tutor have a social arrangement with collective goals, and controls on performance.
The self-employed tutor may have a goal, but it is not collective; is not part of a(n internal) social arrangement and controls on performance may be entirely in their own hands, or perhaps even ab-sent altogether.
The y-axis of the Product Life Cycle could properly show the following (select all that apply):
The vertical axis (the y-axis) of the product life cycle diagram could correctly show all three, and might commonly show losses and / or investment in the early stage(s).
The letters 'MNC' stand for:
'Multi-national corporation' is the correct answer. Very large international organisations, with very large turnover, purchasing power and influence. Examples would include: Alphabet, Amazon, Ap-ple, Dell, Ford, Shell, Toyota, etc
A contract clause which entitles the buyer to hold back 5% of the final price for six months to en-sure everything is in order is known as a --------- clause:
'Retention' - from the word 'retain', meaning to 'keep in place', 'hold back', 'keep possession of' something (Concise Oxford Dictionary, fifth edition) . In this case, 5% of the contract price.
Thinking of the STEEPLED factors which may impact long-term on an organisation, under which one heading would the following appear: growth trends, unemployment patterns, incomes, interest rates exchange rates and tax rates?
The correct answer, covering all of these, is 'economic'.
'Political' could also be considered, but 'economic' covers them all.
The other two answers suggested are not really relevant.
