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ISM Supply Management Core Exam Sample Questions (Q213-Q218):

NEW QUESTION # 213
MNO, Inc. has been one of XYZ Company's most valuable customers for a number of years. During a formal competitive bid event for a new product introduction, MNO becomes a supplier to XYZ. In this situation, which of the following should be of GREATEST concern to these organizations?

A. Customer feedback
B. Conflict resolution
C. Progress reports
D. Reciprocal relationship

Answer: D

Explanation:
* Sales Representative's Promise: The sales representative from XYZ Company provided documentation that the product would meet or exceed ABC's specifications.
* Express Warranty: An express warranty is created when a seller makes a promise or provides assurance that a product will meet certain standards or specifications.
* Non-Conforming Goods: Upon inspection, the product did not meet the required specifications and could not be used for its intended purpose.
* Buyer's Rights: Under the Uniform Commercial Code (UCC) and similar laws, the buyer has the right to return non-conforming goods and seek a full refund when an express warranty has been breached.
* Conclusion: ABC is entitled to return the product and receive a full refund due to the breach of the express warranty.
References
* UCC (Uniform Commercial Code). (n.d.). Article 2 - Sales.
* ISM. (n.d.). Managing Warranties and Product Non-Conformance.

NEW QUESTION # 214
An on-demand taxi service guarantees that it can provide a taxi in five minutes or less. If the service has a fixed number of taxis, how can it most cheaply guarantee "five minutes or less" during busy periods?

A. It is impossible to keep the guarantee during busy periods.
B. It maintains a fleet of taxis large enough to meet demand in busy periods.
C. It keeps demand low by encouraging drivers to be less polite during busy periods.
D. It raises prices during the busy periods.

Answer: D

NEW QUESTION # 215
A company's accounting department implements a new system to track liabilities for capital assets. The reports developed by this system exclude some important indirect procurement data (e.g., transactions related to test equipment), as this information is tracked by another system. Which of the following is the BEST course of action for the firm to take in this situation?

A. Notify the entire organization of the issue during the next iteration of the tool
B. Notify senior management that reports from the new system may understate the company's debts and assets
C. Estimate the total debts and assets being tracked outside the system and correct any large variances on a quarterly basis
D. Take no action, as the aggregate numbers reported to shareholders will not be severely affected

Answer: B

NEW QUESTION # 216
Which of the following activities will NOT cause total assets to increase?

A. Borrowing $200,000 from a local bank
B. Raising $200,000 by issuing new shares of common stock
C. Paying a $300,000 insurance expense for the next three years
D. Purchasing a piece of equipment for $100,000 on credit

Answer: C

NEW QUESTION # 217
Which of the following statements is characteristic of all assets?

A. They are owned or controlled by the organization.
B. They are owned free and clear by the organization.
C. They are obligations to a third party.
D. They can be converted to cash in the short term.

Answer: A

NEW QUESTION # 218
......

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CORe Exam Valid Test Cost & Excellent Exam CORe Prep Pass Success

Free PDF Quiz ISM - CORe - Supply Management Core Exam –The Best Valid Test Cost

ISM Supply Management Core Exam Sample Questions (Q213-Q218):

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