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ISM Supply Management Core Exam Sample Questions (Q85-Q90):

NEW QUESTION # 85
DEF, Inc. is a multinational oil company expanding into a new geographic region. The firm's policy is to purchase locally for its operations whenever possible. Thus, DEF needs to find sources of materials, basic equipment, and standard bulk items within the new region. Which of the following should DEF do FIRST?

Answer: B

Explanation:
* ] Understand the Need: DEF, Inc. needs to find local sources for materials and equipment in a new geographic region.
* Initial Information Gathering:
* An RFI is used to collect information about potential suppliers' capabilities, offerings, and market conditions.
* This step helps in understanding the supplier landscape and identifying potential suppliers.
* Evaluate Responses: Analyze the information gathered from the RFI to shortlist suppliers for further engagement.
* Subsequent Steps: Based on RFI responses, the company can issue RFQs or RFPs to procure the required materials and equipment. References:
* Procurement and Sourcing Best Practices
* Supplier Selection and Evaluation Processes
* Strategic Sourcing Frameworks


NEW QUESTION # 86
A company's retained earnings on Dec. 31st, 2009 to 2013 is as follows:

On the pro-forma income statement for 2014, the net income is $10,000. The expected dividends to be paid in 2014 is $3,500. What is the projected retained earnings on Dec. 31st, 2014?

Answer: C


NEW QUESTION # 87
Using the histogram below, how many companies have market capitalizations of more than $248 billion and up to and including $260 billion?

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Answer: A

Explanation:
Topic 2, Economics for Managers


NEW QUESTION # 88
Which of the following options is an example of an expense?

Answer: C


NEW QUESTION # 89
While proposing an advertising campaign to a supermarket, a marketing firm claimed that a previous campaign it designed for a department store increased sales by 10 percent. Which of the following research strategies should the supermarket pursue to determine whether this claim is justified?
I. Research sales growth for the department store's competitors during the time of the campaign.
II. Research sales growth for the marketing firm's other clients after their campaigns.
III. Research sales growth for companies that used different marketing companies' campaigns.
IV.
Research the department store's sales growth prior to the marketing campaign.

Answer: D


NEW QUESTION # 90
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