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CIPS-Ethical and Responsible Sourcing L4M4 Paper 13.
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1.
When addressing compliance through corrective action, a buyer might seek the endorsement of an independent third party to gain influence within the supply market. Which two approaches might be most suitable?
2.
Simon has created a business case to advocate for introducing an e-tendering system in his organization’s procurement department. Which of the following are benefits of adopting such a system? Choose two.
3.
The statement of financial position provides vital details for evaluating a supplier's financial stability. This document typically includes:
4.
When enforcing compliance by taking corrective action, a buyer might wish to have an independent third party endorsement to gain an additional source of influence within the supply market. Which of the following approaches might be suitable? Select TWO that apply.
5.
Lab-tech is a Procurement Specialist for Medical Maintenance Services in a local hospital. Their role involves securing contracts that guarantee uninterrupted operations and maintain patient safety for critical, high-value equipment such as radiology machines. In tendering processes for these services, Lab-tech emphasizes the inclusion of specific standards as mandatory requirements. Which of the following highlights the advantages of setting standards within a specification?
6.
Many businesses opt for a multi-sourcing strategy due to several benefits. Which of the following is an advantage of this approach?
7.
In the context of Ratio Analysis, what does gearing refer to?
8.
Which of the following characterizes the market for primary commodities?
- Fluctuating conditions caused by political factors and natural disasters.
- Inelastic supply due to large-scale production.
- Speculative bidding driven by the pursuit of maximum profits.
- The influence of exchange rates and credit rating agencies.
9.
Which mechanism helps prevent conflicts of interest?
10.
The current ratio measures short-term liquidity and is used to compare a supplier’s current assets with its current liabilities to assess financial stability. Which items would typically be considered current assets in the current ratio calculation? Select TWO that apply.
11.
Although profitability ratios might be useful measures of the supplier’s financial position, they have some limitations such as …..
12.
When evaluating tender submissions, which actions should be taken?
- Produce a report on each submission.
- Review the pre-qualification questionnaire.
- Verify the arithmetic accuracy of each tender.
- Log the received tenders.
13.
Louis is preparing a business case to support the outsourcing of domestic services. Which of the following factors should support the decision to outsource?
14.
Which of the following ratios are used to assess a supplier’s profitability? Select TWO that apply
15.
Which sourcing strategy is best suited for a standardized product with many capable suppliers, where there is no opportunity for innovation, and the buyer wants to leverage purchasing power for the best price?
16.
A large bakery is aiming to drive down rates for its eggs through a competitive tender. Utilizing which sourcing strategy would best drive this?
17.
You need to purchase 500 pens from a specific brand and decide to use a weighted points system for evaluating proposals. Is this approach appropriate?
18.
Which of the following could be a disadvantage of competitive tendering?
- It delivers the lowest price only when price is the primary criterion.
- It invites more bidders, reducing the incentive for better performance.
- It reduces the administrative burden for buyers.
- It works only when users can provide a precise requirement specification.
19.
What role do credit rating agencies play in the sourcing process?
20.
ABC Manufacturing has decided to buy a new CEO’s chair, custom-designed with their corporate logo. The supplier is located overseas, and ABC must complete the necessary customs documentation. Since the chair is for internal use, which document should ABC provide?
21.
An organization aims to measure its Triple Bottom Line. Which of the following factors should be considered to achieve this?
22.
If you’ve received a large number of responses to a high-value tender and a colleague notices you haven’t conducted a financial assessment of the suppliers before deciding on the award, should you stop and complete the financial review?
23.
Which balance sheet ratios measure liquidity and solvency? One liquidity ratio is the "current ratio." Which pieces of information from the balance sheet are used to calculate the current ratio? Select TWO that apply.
24.
Which of the following best describes strategic sourcing?
25.
Which type of ratio measures an organization’s ability to generate enough cash to meet its obligations?
26.
You’re supporting a buying team and need to issue an award letter to company X, which won a tender. However, you are friends with the buyer at company X. Is this appropriate?
27.
Secondary data sources can be used to assess market conditions. Which of the following are sources of secondary data for this purpose? Select TWO that apply.
28.
What role do regulators play in an oligopoly market structure?
29.
A primary source of supply market data would be …..
