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The HBX CORe Final Examination is a comprehensive test that evaluates students' mastery of the program's core concepts. CORe exam consists of three sections that correspond to the three main areas of study covered in the program. The first section focuses on data analysis and interpretation, including topics such as probability, regression analysis, and hypothesis testing. The second section centers on microeconomic principles, such as market structures, pricing strategies, and game theory. The third section covers financial accounting topics, such as financial statements, cash flow, and ratio analysis.
ISM Supply Management Core Exam Sample Questions (Q83-Q88):
NEW QUESTION # 83
On the way to purchase a shirt, a consumer realizes that the shirt is on sale for 20 percent off its original price. What is an outcome of this scenario?
- A. The supplier will price the shirt below its willingness to sell.
- B. The customer will capture more value from the purchase.
- C. The customer will buy more shirts.
- D. The customer's willingness to pay for the shirt will fall.
Answer: B
NEW QUESTION # 84
On a balance sheet, assets are arranged in the order of:
- A. Materiality
- B. Liquidity
- C. Profitability
- D. Stability
Answer: B
NEW QUESTION # 85
A buyer for DEF, Inc. has been exceeding spending authority on agreements with several new suppliers.
Which of the following Is an accurate statement regarding DEF's liability in this situation?
- A. DEF is responsible for the agreement if the buyer exceeded actual and apparent authority levels, but only for a value equal to the apparent authority amount.
- B. DEF is fully liable for the agreements, as the buyer is an employee of the company.
- C. DEF is responsible for the agreements if the buyer exceeded actual authority, but the suppliers perceived the spend to be within apparent authority.
- D. DEF is only liable for an amount equal to the buyer's actual authority level.
Answer: C
NEW QUESTION # 86
Which of the following transactions represents an owner's equity transaction for a company?
- A. The purchase of shares in a company that's also a supplier
- B. A purchase of a building paid in cash
- C. A repurchase of a company's own stock
- D. An in-kind payment for services received
Answer: C
NEW QUESTION # 87
Which of the following is the PRIMARY reason an organization's executive team and internal stakeholders should be aligned on the definitions of cost savings reporting?
- A. To ensure appropriate risk management strategies are being adopted
- B. To ensure price baselines can be adjusted for comparison purposes overtime
- C. To ensure supply management is adding value
- D. To ensure financial professionals can audit the cost savings reporting process
Answer: C
Explanation:
* Cost Savings Reporting: Accurate cost savings reporting is essential for demonstrating the value that supply management brings to the organization.
* Alignment on Definitions: When the executive team and internal stakeholders are aligned on the definitions of cost savings, it ensures that the reported savings are understood and accepted across the organization.
* Value Demonstration: This alignment shows that supply management is effectively contributing to the
* company's financial performance and strategic goals.
* Other Considerations: While auditability, baseline adjustments, and risk management are important, the primary reason for alignment is to clearly demonstrate the value added by supply management.
References
* ISM Professional Series: Cost Management
* CIPS Knowledge on Financial Management in Procurement
NEW QUESTION # 88
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