Practice Test Geeks(CAM) Certified Account Manager Practice Test
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CAM Contract Management & Procurement Flashcards

6 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CAM Contract Management & Procurement flashcards as text

  1. Which contract clause protects a company from losses caused by a vendor's failure to deliver services as agreed?

    Answer: Indemnification clause

    An indemnification clause requires one party to compensate the other for losses arising from a failure to perform contractual obligations.

  2. In procurement, what does the term 'RFP' stand for?

    Answer: Request for Proposal

    An RFP (Request for Proposal) is a document a company issues to solicit competitive bids from vendors for goods or services.

  3. A certified account manager reviewing a vendor contract notices a 'liquidated damages' clause. What does this clause specify?

    Answer: A pre-agreed penalty amount for contract breach

    A liquidated damages clause establishes a fixed compensation amount owed if a party breaches a specific term of the contract.

  4. Which procurement strategy involves maintaining multiple approved vendors to reduce supply chain risk?

    Answer: Dual-sourcing

    Dual-sourcing (or multi-sourcing) diversifies supply by qualifying more than one vendor, reducing dependency on a single supplier.

  5. During contract negotiations, what is a 'BATNA'?

    Answer: Best Alternative to a Negotiated Agreement

    BATNA represents the best course of action a party can take if negotiations fail, establishing the minimum acceptable outcome.

  6. A contract renewal is approaching in 90 days. Which action should an account manager prioritize first?

    Answer: Review contract performance metrics and SLA compliance

    Reviewing performance metrics and SLA compliance provides the factual basis needed to assess whether to renew, renegotiate, or replace the vendor.