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CIPS-Ethical and Responsible Sourcing L4M4 Paper 6.
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1.
A cleaning company purchases 1,000 brushes for cleaning Parking Yard. Some break during use, and the buyer seeks a full refund under the Consumer Rights Act,2009 claiming they were not fit for purpose. Is this claim valid?
2.
When an organization pays tariffs and import duties for goods purchased from international suppliers, who benefits?
3.
Should price always be the most important factor when awarding contracts?
4.
Which international standard helps ensure gifts and hospitality are not given for corrupt purposes?
5.
Sourcing within the procurement cycle is typically paired with which two activities?
- Raising purchase requisitions
- Identifying potential suppliers
- Request for quotations
- Creating call-off orders
- Uploading goods received notes
6.
Is a reverse e-auction suitable for achieving competitive pricing for procurement?
7.
To calculate the gross profit margin ratio of a potential supplier, which financial statement items are needed?
- Total current asset
- Income from sales
- Current liabilities
- Cost of goods sold
- Value of equity capital
8.
Which Incoterms reflect the greatest risk for the buyer and seller?
- CFR (Cost and Freight)
- CIF (Cost, Insurance, and Freight)
- DDP (Delivered Duty Paid)
- EXW (Ex Works)
- FOB (Free on Board)
9.
What are the four broad Incoterm groups reflecting increasing seller responsibility?
10.
When drafting a business case for outsourcing domestic services, which factors support outsourcing?
11.
What is an example of secondary market data for buyers?
12.
Rachel, a procurement officer responsible for managing contracts for diagnostic equipment at a regional healthcare facility, focuses on maintaining continuous service and safeguarding patient care. During the tendering process, she incorporates compliance with relevant standards into the technical specifications. What is one main advantage of including standards in procurement specifications?
13.
Jonas, a category buyer managing facilities-related purchases for a national law enforcement agency, is leading a cross-border procurement project involving uniforms and safety gear. While he expects cost efficiencies through international sourcing, he remains concerned about potential fluctuations in currency values.What strategy can Jonas use to reduce the impact of exchange rate volatility?
14.
Lilly is drafting a business case to implement e-tendering in his procurement team. What benefits can e-tendering offer?
- Minimal initial investment costs
- Confidential information security
- Consistency in tendering procedures
- Support for cross-functional collaboration
15.
Ratios can be used to analyse supplier financial standing, strength and stability. Which of the following are measures of a supplier's profitability?
- Returns on assets
- Debt collection period
- Asset turnover
- Net profit percentage
- Price earnings ratio
16.
Tony, a buyer for an electrical components firm, is training staff on the benefits of competitive bidding. When is competitive bidding appropriate?
- When production costs cannot be accurately estimated
- When price isn't the main award criterion.
- When specifications may change during the contract
- When sufficient potential suppliers exist
- When adequate time allows for the process
17.
A procurement manager uses the Global Social Compliance Program (GSCP) for audit work. Is this appropriate?
18.
What are critical ethical factors in non-cost assessment criteria? (Select two.)
- Competitive whole life costs
- Lifecycle material impacts
- Use of SME diverse suppliers
- Accreditation to standards
- Cost transparency and fairness
19.
Max Construction Ltd integrates sustainability into its selection process but anticipates challenges. What could be a likely issue?
20.
Which of the following are indicators of responsible purchasing from a buyer's perspective in ensuring Human Rights in the supply chain?
1. working towards minimum safety standards
2. Identification of specification and delivery dates
3. Long term; stables risk sharing with the supplier
4. Managing work practices to support the supply chain
21.
The Directors of Harvey Consultants have instructed their procurement manager that in order to gain further value for money for the business, e-aution methodology should be investigated and undertaken thereafter for any appropriate goods and services. Which of the following is likely to be the first criteria set in the e-aution process?
22.
Young's Tool Manufacturing has decided to purchase a new CEO's chair, with their own corporate design displayed. As the best value for money supplier is based in a different country, Young needs to complete the appropriate documentation for customs. As the item will be used for Young's own internal business consumption, which type of document should they produce from the following?
23.
Harper Blinds is about to use a new supplier establish in a different country. The supplier will be providing metal brackets that will be used for the assembly of the blinds at the final stage of the manufacture. The import documentation will be produced by the importer. Of all the different types of import documentation, which is considered to be the most important document that certify the sales?
24.
Duty and tariffs may be imposed on goods that are imported through a country's customs portals. Tariffs are different to Duty in which of the following?
25.
Gear Enterprise are an international company who have decided to purchase bulk technical equipment from a supplier they have previously used. It is director's intention to warehouse this equipment at the point of import as soon as it arrives with customs. The director is Keen that the company should be able to request the consignment in part quantities from the customs warehouse. Which of the following documentation should the company complete for this purpose?
26.
Which is the preferable method of achieving sustainability?
27.
An organisation wants to measure it's Triple Bottom Line. Which of the following should be considered to best help achieve this goal?
28.
Current ratio is a short term liquidity ratio that might be used to compare a potential supplier's current assets with current liabilities to determine the financial stability. Which of the following balance sheet (statement of financial position) items are likely to be identified as current assets for the purchase of calculating the current ratio.
- Cash held in the bank
- Buildings rented for business
- Cash locked up in the safe
- Bank overdraft to pay for stock
- Suppliers unpaid invoices
29.
Simon has written a business case to support the introduction of an e-tendering system for the procurement department within his organisation. Which of the following are advantages of adopting e-tendering system?
- Assists with cross-functional working
- Does not prevent any supplier from responding
- Ensures complete security of commercial information
- Ensures pricing submissions are lower
- Provides a full audit trail for the buyer
30.
Simon has written a business case to support the introduction of an e-tendering system for the procurement department within his organisation. Which of the following are advantages of adopting e-tendering system? Select two that apply.
- Auditing by qualified expert workers
- Involving independent workers’ associations
- Members of the board investigating compliance
- Involve internal stakeholders
- Regular meetings between buyer’s side and supplier’s side
