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ISM CPSM Bridge Sample Questions:

1. The supply management professional may encounter very complex arrangements of authority. This may be in the form of actual authority, apparent authority, express or implied authority. The type of authority used to describe authority created in an agency when a principal permits an individual to operate in a fashion that makes third parties believe the individual is an authorized agent of the principal is?

A) Implied authority
B) Expressed authority
C) Apparent authority
D) Actual authority

2. ________________________ establishes reporting requirements for asset categories.

A) The Sarbanes-Oxley Act.
B) The Securities Exchange Commission.
C) The Department of Commerce.
D) The Internal Revenue Service.

3. The cost the organization would incur if a supplier does not perform on time or within specifications is?

A) Loss of delivery costs due to non performance.
B) Opportunity costs due to non performance.
C) Incurred damages in supply transfer.
D) Liquidated damages of supply management.

4. Johnson Chemical Company has developed a new synthetic lubricant for machinery which is protected by a confidentiality agreement. Which form of intellectual property is this MOST likely classified under?

A) Patent
B) Trade secret
C) Trademark
D) Copyright

5. Typically the supply management professional will have sufficient time for competitive bidding. If increased urgency is required the supply management professional will resort to?

A) FIRST IN delivery which is the fastest form.
B) Rapid ordering system for acquisition.
C) Negotiation for best price best/product service.
D) Succession bidding where the first bidder to supply wins the awards of the contract.

Solutions: