CSM CSM Vendor Management & Procurement 1

Question 1

What is the primary purpose of a Request for Proposal (RFP) in software procurement?

Accepted Answer

To solicit detailed technical and commercial proposals from potential vendors

Answer

To notify vendors that a contract has been awarded

Answer

To document internal project requirements only

Answer

To terminate an existing vendor relationship

Question 2

Which contract type places the MOST financial risk on the buyer/client in software procurement?

Accepted Answer

Time-and-materials (T&M) contract

Answer

Fixed-price contract

Answer

Cost-plus contract

Answer

Firm fixed-price contract

Question 3

What is a Service Level Agreement (SLA) in the context of vendor management?

Accepted Answer

A formal agreement specifying the expected level of service, metrics, and remedies for non-compliance

Answer

A contract defining the scope of work and payment terms

Answer

A vendor's internal quality management document

Answer

An agreement about employee benefits for contracted staff

Question 4

During vendor evaluation, what does a 'proof of concept' (PoC) help a software manager determine?

Accepted Answer

Whether the proposed solution technically works in the buyer's specific environment

Answer

The vendor's financial stability

Answer

The vendor's customer support responsiveness

Answer

The total cost of ownership over five years

Question 5

What is vendor lock-in, and why is it a concern for software managers?

Accepted Answer

Excessive dependency on a single vendor's proprietary technology, making switching costly and difficult

Answer

A legal clause that prevents a vendor from working with competitors

Answer

A security control that restricts vendor access to sensitive systems

Answer

A pricing model where costs are locked in for a fixed multi-year term

Question 6

Which of the following is the MOST important criterion when evaluating a vendor's financial stability during procurement?

Accepted Answer

Audited financial statements and credit ratings

Answer

Number of employees

Answer

Number of years in business

Answer

Size of marketing budget