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NO.1 Which of the following would be used to resolve buyer/seller disputes related to global shipping and
packaging?
A. World Trade Organization (WTO)
B. General Agreement on Tariffs and Trade (GATT)
C. North American Free Trade Agreement (NAFTA)
D. Convention on Contracts for the Sale of Goods (CISG)
Answer: D

NO.2 Which of the following conditions is MOST likely to create a buyers' market?
A. Threat of strikes.
B. Political instability.
C. Favorable sales forecasts.
D. Adequate supply of materials.
Answer: D

NO.3 Which of the following terms BEST describes a situation in which a buyer directly or indirectly benefits
from his/her position or connections as an employee, or from the sale, purchase, or other activity of the
company?
A. Conflict of interest.
B. Mutual assent.
C. Subrogation.
D. Reciprocity.
Answer: A

NO.4 Which of the following bonds are used to protect purchasers and their organizations?
A. Performance bonds.
B. Municipal bonds.
C. Corporate bonds.
D. Bearer bonds.
Answer: A

NO.5 Which of the following would be the LEAST affected if the purchasing department at XXXX.com is
given insufficient time to procure a needed item or service?
A. Special production runs.
B. Competitive position.
C. Negotiation edge.
D. Efficiency.
Answer: A

NO.6 Which of the following costs would NOT be reduced by efficient expediting?
A. Lost discounts.
B. Excess inventory.
C. Production stoppage.
D. Premium transportation.
Answer: A

NO.7 Which of the following statements is FALSE regarding a purchase order contract that includes the
term "C.I.F"?
A. B. The title transfers to the buyer on receipt of goods.
B. The cost of transportation is included in the price.
C. The seller makes all arrangements for shipment.
D. The shipment is insured against loss or damage.
Answer: A

NO.8 XXXX.com has a 10% profit margin before taxes and spends 50% of its sales dollar on materials. What
percentage reduction in material costs for XXXX.com to achieve an increase of 5% in sales?
A. 1%
B. 2.5%
C. 5%
D. 7.5%
E. 10%
Answer: A