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CIPS-Ethical and Responsible Sourcing L4M4 Paper 16.
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1.
The process of eliminating waste typically involves four stages. Which four are they?
2.
Procurement professionals aim to collaborate with suppliers who are environmentally responsible. Procurement will prioritize suppliers who exhibit the following behaviors:
- Contribute positively to the environment.
- Avoid air pollution.
- Replenish natural resources used within their supply chains.
- Give back to the community where they operate.
3.
Modern slavery refers to individuals being coerced into work under exploitative conditions or trafficked to foreign countries for forced labor.
4.
What is the most effective metric for a procurement manager to identify risks related to a supplier's exposure to rising interest rates?
5.
What is the most effective financial measure for identifying a supplier’s exposure to rising interest rates?
6.
Which of the following terms in a supplier’s financial statement are relevant when calculating gearing?
1. Long term debt.
2. Opening inventory.
3. Short term debt.
4. Shareholders equity.
7.
When calculating liquidity ratios, which two factors should be considered?
8.
A procurement analyst is reviewing a supplier’s financial statements. Sales revenue is £500 and the cost of goods sold (COGS) is £200. What is the supplier’s gross profit percentage ratio?
9.
Calculate the Net Profit percentage ratio.
10.
A procurement manager is analysing a supplier’s financial health. The supplier’s current assets are £50,000 and current liabilities are £35,000. What is the supplier’s current ratio?
11.
A buyer is reviewing a supplier’s liquidity position. The supplier’s current assets total £50,000, inventory is £25,000, and current liabilities are £35,000. What is the supplier’s acid test (quick) ratio?
12.
A procurement manager is reviewing a supplier’s liquidity using the acid test ratio. What is considered an ideal result that indicates the supplier has sufficient liquid assets to cover short-term liabilities without relying on stock?
13.
A procurement analyst is assessing a supplier’s profitability using the gross profit percentage ratio (GP%). What is generally considered a healthy gross profit margin that indicates good profitability before operating expenses?
14.
A procurement analyst is reviewing a supplier’s financial statements to assess profitability using the Gross Profit Ratio. What is generally considered an ideal result that reflects strong profitability after accounting for production costs?
15.
A procurement analyst is reviewing a supplier’s financial position using the Current Ratio. What is generally considered an ideal result that indicates sound short-term liquidity?
16.
A buyer is assessing a supplier’s financial stability using the Gearing Ratio. What is generally considered an ideal result that indicates low financial risk and manageable debt levels?
17.
Does ratio analysis help identify a supplier's profitability, liquidity, gearing, and investment potential?
18.
Can ratio analysis offer insights into a business's financial health, especially when compared to industry benchmarks or broader economic trends?
19.
Which of the following is NOT a limitation of ratio analysis?
20.
What are common criteria for awarding contracts?
21.
Are both technical and commercial criteria used in awarding contracts?
22.
Technical criteria may include:
1. Specification
2. Delivery
3. Quality
4. Cultural fit
23.
Commercial criteria may include:
- Ethical standards
- Sustainability
- Price
- Total life-cycle costs
24.
The Pareto principle states that 80% of effects come from 20% of causes.
25.
Suppliers cannot be categorized by their importance or spending levels within an organization.
26.
According to the Pareto principle, A suppliers account for 20% of total spend and are responsible for the majority of high-value purchases.
27.
In the Kraljic matrix, A suppliers (following the Pareto principle) are typically contracted to supply strategic products or services within an organization.
28.
Data directly obtained from the original source for a specific purpose is known as
29.
Both primary and secondary data can be distorted. Is this true?
30.
Can commodities be categorized into five trading categories on the stock exchange?
