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CIPS-Ethical and Responsible Sourcing L4M4 Paper 12.
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1.
You're tasked with sending an award letter to Company X, who has recently won a tender. You inform your manager that you are friends with the head buyer of Company X. Is this appropriate?
2.
You are responsible for issuing a request for quotation to five companies. While emailing, you recognize an email address as belonging to a distant relative whom you don't communicate with. You proceed with sending the request without informing anyone. Is this the right approach?
3.
As a procurement officer, a supplier invites you via social media for dinner to discuss a current open opportunity and offers a financial incentive for assisting them in securing the business. You agree to meet. Was this a wise decision?
4.
A supplier offers international football tickets to a procurement manager during contract negotiations. How should the procurement manager respond?
5.
What potential dangers are associated with outsourcing?
- Reduced oversight of projects
- Loss of valuable assets
- Missed future business chances
- Breach of confidential information
6.
What type of sourcing arrangements is most suitable for a standard product with many competent suppliers, where there is no opportunity for innovation and the buyer wishes to use leverage to achieve best value?
7.
Which balance sheet items are likely to be considered as current assets when calculating the current ratio? (Select two that apply)
8.
Which of the following are indicators of a supplier's profitability? (Select two that apply)
9.
To assess the gross profit margin of a supplier, which pieces of data from the profit & loss account are needed? (Select two that apply)
10.
What is the formula for calculating net profit margin?
11.
What are the two main financial statements that reflect an organization's assets and liabilities, and show the changes in cash position over the year?
12.
The procurement manager has received data to help calculate the supplier’s current ratio: Current assets (Stock $60, Cash $40, Total $300), short-term liabilities (Bank overdraft $150). What calculation should be used to find the current ratio?
13.
The bill of lading is a document signed by a ship owner confirming that goods have been received for shipment. Besides confirming the shipment, it also functions as a transfer of ownership. What is another key function of the bill of lading?
14.
Young's Tool Manufacturing is buying a CEO’s chair for internal use, and the supplier is from a different country. What type of document should be prepared for customs?
15.
Harper Blinds is importing metal brackets from a new supplier in another country. What is the most important document certifying the sales transaction?
16.
Gear Enterprise is importing bulk technical equipment and plans to warehouse it at customs. What document should the company complete to allow for part quantities to be released from the warehouse?
17.
Why are tenders in the public sector typically given longer timescales compared to the private sector?
18.
How can a buyer monitor a supplier’s ethical workforce standards during a long-term contract?
19.
Which of the following best describes a restricted open tender?
20.
A procurement manager is conducting market research for a new product. Where might they obtain secondary market data?
21.
One of the common tasks of a buyer is contacting suppliers in search of quotations. What data might a typical request for quotation (RFQ) require from the supplier?
1. Price and payment terms e.g. Cash on delivery or after 7 days
2. Invoice number and availability e.g. ex-stock or two weeks lead time
3. Contact name and physical address of the supplier
4. Mode of transport and delivery note number
22.
A multinational company is seeking to negotiate an agreement with global supplier for the delivery of fresh produce. At which stage of the procurement process should the buyer consider incoterms?
23.
An organization is increasing its focus on Corporate Social Responsibility (CSR). Which action would have the greatest CSR impact?
24.
A company has decided to outsource the delivery of internal staff training to a training services provider. A list of key performance indicators has been added to the contract. Identify the key benefits of this.
25.
A company is seeking to put out to tender a new contract opportunity, and wants to pre-qualify the supplier list. The purpose of the prequalification is to ensure what?
26.
Responsible sourcing demands compliance to basic ethical standards of zero tolerance to malpractices such as, but not limited to: bribery, corruption and fraud. Which of the following statements might represent the best guidance to the buyer when addressing bribery as a threat to responsible sourcing
27.
The sourcing process is considered to comprise of the initial stages of the generic procurement cycle, up to the stage where the contract is awarded to the successful bidder. The stages in the sourcing process may include
28.
Which of the following are examples of primary data for an organisation
29.
What is the purpose of incoterms?
