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- OPSM Opticians Ltd is a producer of fashion eyewear. The audit report for the year ended 30June 20X9 was signed on 5 August 20X9 and along with the financial report was mailed toshareholders on 10 August.Consider the following independent events. Assume that each event is material.I. On 5 July, OPSM Opticians entered into a new contract to supply eyewears to JDS, a newmajor department store. The contract was similar in nature to other contracts previouslynegotiated. II. OPSM Opticians has invested significant funds in developing a new type of unbreakablesunglass lens. On 8 July, OPSM Opticians applied for a patent for the lens, only to discoverthat a competitor had lodged a similar application on 20 June. The granting of TrendyAccessories’ application is now in serious doubt. III. Internal audit has uncovered a major fraud at one of OPSM Opticians branches. The fraudwas perpetrated by two senior staff, acting in collusion over a number of years. Theinternal auditors released their…Under what circumstances would a construction change directive (CCD) be used? When the owner selects one of the alternates included in the initial bid When the designer assumes control of the means and methods used for construction When the source of the change is differing site conditions When a change is minor and has no impact on cost or schedule When the owner wants the contractor to perform a change but cost has not yet been determinedDescribe the environment in which it would be common to bid for contracts with low profit margins. What does this environment suggest about the competition levels.
- 19) The NRC (National Research Council) of Canada is sending out a request for proposal for a very large long-term research and development project. What contract type are they most likely to use? a) fixed price b) cost reimbursable c) time and materials d) unit price 20) Payments to the seller are made in accordance with the: a) project management plan b) procurement management plan c) communications management plan d) terms of the contractThe management of Sharp Bank Ltd has received a tender offer fromUltimate Bank for the acquisition of Sharp Bank. Sharpe Bank intends to devisedefenses that would make it more difficult or costly for Ultimate Bank to takethem over.a) How might such defenses affect the firm’s agency problems?Arthur recently selected a broker to sell his house. Arthur and the broker are now in the process of finalizing the listing agreement. How should Arthur determine how much he should pay the broker as a commission? O The commission must be set to 6% of the sales price as dictated by FREC O The commission must be between 3-6% of the sales price as per NAR guidelines. ○ Arthur must negotiate with the broker until both parties agree to a commission. O A listing broker is not entitled to a commission.
- The Jennings Construction Company has decided to bid on the construction for each of the two phases of a large project. The bidding requirements are that the costs for each phase be submitted separately together with a transition cost for turning over the first phase of the program to a second contractor should Jennings not receive both awards or perform unsatisfactorily on the first phase. The evaluation for the award of the second phase will not be made until the first phase is near completion. How can the transition costs be identified in the strategic planning model?Explain and provide at least two (2) examples for the term “risk assessment” during a negotiation.What is a pre-bid subtrade proposal, and of what benefit is it to the contractor’s estimator?
- Subject: Procurement & Sourcing Q): How contract is establish? Q) What are the main terms of contract?How do customers evaluate proposals? What factors might they consider? Describe two different types of contracts, when each should be used, and the risks associated with each.State whether the following contracts are considered leases under PFRS 16. Why or why not? 1. Customer enters into a contract with an aircraft owner (supplier) for the use of an explicitly specified aircraft for a two year-period. The contract details the interior and exterior specifications for the aircraft. 2. Customer enters into a contract with a manufacturer (supplier) to purchase a particular type, quality and quantity of shirts for a three-year period.