CIPS-Ethical and Responsible Sourcing L4M4 Paper 20 -

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CIPS-Ethical and Responsible Sourcing L4M4 Paper 20.
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Which is the preferable method of attaining Sustainabilit.

To take back products at the end of their useful life

To take back products that are reusable

To design products which uses recyclable material

To use materials which are plentiful

None

What distinguishes open procedures from other types of contract award processes?

It is openly advertised in the specific media that covers the target potential suppliers

It is openly advertised & potential bidders are willing to attend the tender opening session

It is openly advertised to all potential suppliers that might express an interest in being included

It is openly advertised to all pre-qualified suppliers on the buyer's database

None

A supplier offers you dinner and a financial reward via social media to discuss a contract opportunity. Is accepting this offer appropriate?

Yes, you are free to do what you like outside of business hours

No, it is not appropriate to discuss business opportunities with one provider & not another

Yes you are keen to see what was on offers as you are only on minimum wage currently and needed extra money.

No, but you will go to the dinner & see what they offer, because it is up to you to decide if you should accept

None

Which of the following are secondary sources of market and supplier data? (Select TWO)

Published economic indices

Buyer's database of supplier's data

Financial & trade press

Online market exchange

What information can typically be obtained from a credit rating agency report? (Select TWO)

Product pricing information

Payment history

Financial stress score

Tender submission pricing

Rebate information

Young's Tool Manufacturing is importing a custom-designed CEO chair. What documentation should they prepare for customs?

Bill of entry

Export licence

Consignment sale

Bill of exchanged

None

What is one advantage of multi-sourcing?

It is the only approach that supports the open tendering projects

It is the only approach that enables the buyer to isolate the best suppliers from among many.

It helps the buyer to increase stock varieties in order to avoid stock outs.

It increases process flexibility & switching using a range of approved suppliers.

None

Why is bribery a significant concern in responsible sourcing?

Bribery is an act that is likely to result in costly litigation & loss of reputation to the buying organisation.

Bribery is an act that is likely to make the buyer wealthier than colleagues and therefore create internal problems.

International buyers should tolerate some level of bribery, where it is accepted in culture as part of a daily life.

Suppliers are likely to pass their bribery costs to the buying organisations. Buyers should therefore negotiate substantial discounts to offset bribery costs.

None

Which of the following are key characteristics required in public sector sourcing? (Select TWO)

1. An emphasis on long term supplier relationship where possible.
2. Maintaining service levels within value & cost parameters
3. All dealings between suppliers & buyers are kept confidential
4. A competitive tendering process is usually required.

1 & 2 only

1 & 3 only

2 & 3 only

2 & 4 only

None

Company has decided to outsource the delivery of internal staff training to a training service provider.A list of key performers has been added to the contract.What is the benefit of this?

Ensure the cost of training remain fixed.

Monitor staff feedback on training delivery

Ensures legislative requirements are met.

Monitors staff competency matrix

None

Is using a reverse e-auction suitable for competitive procurement?

No as the fina price will be higher than the first bid made by the opening bidder.

Yes, as the final price submitted will be the lowest price qouted for the item.

Yes, as the final price will be best and final price that the supplier submits.

No, as the final price for the item may not include all of the costs, such as transportation

None

Is using a weighted point system appropriate for buying 500 pens?

Yes, a weighted points system is always the best way to evaluate supplier's bids.

No, it is not necessary, as in this case you are mainly concerned with price.

Yes you should follow the same procurement process irrespective of the circumstances.

No, you should only use a pointed weight system for high -spend procurement.

None

Why include standards in specifications for high-value medical equipment maintenance?

Standards provide a clear guideline & remove the risk of clear ambiguity.

Standards will mirror the buyer's requirements in the entity.

Standards will ensure low pricing is submitted in the tender response.

Standards will ensure suppliers meet all the buyer's requirements.

None

What does the triple bottom line (TBL) suggest organisations should focus on?

Planet, people & products

People, planet & price

Profit, people & planet

Profit, planet & products

None

What's the purpose of regulators in an oligopoly?

Limit monopolistic competitions

Assist firms to prosper

Protect government interests

Prevent excessive prices charged

None

How can exchange rate risk be managed in international sourcing? (Select TWO)

Pay for goods at the time of the contract without waiting for delivery.

Using the letter of credit as the payment mechanism for the transaction.

Agreeing on an exchange rate now to be applied at the agreed future date & time.

Negotiate at least 90 days, credit terms in which the exchange rate is likely to fluctuate favourably.

Is this statement correct: "Single sourcing is used when the total need is too small to justify splitting orders"?

Yes, because many suppliers tend to increase stock variety & stock proliferation.

Yes, because single sourcing works well with one off-items such as acquisition of new machines

No, because single sourcing may be adapted, for example a requirement demands expensive set-ups costs

No, because single sourcing is adopted where there is only one supplier in the Market.

None

What figures are used to assess liquidity?

Current assets are working capital

Current liabilities and net profit

Current assets & current liabilities

Current liabilities and sales

None

In ratio analysis, what is gearing?

The measure of the purpose of a business'long term funding that is represented by long term loans.

The measure of how attractive a business is to potential investors based on its financial strength

The measure of liquid assets sufficient to meet short term liabilities

The measure of significant year-on-year trends to develop opportunities.

None

A supplier uses prisoners fairly paid for labor. What is this an example of?

Achievement of ISO9001

Sustainability best practice

Increasing social value

Environmental management

None

What might cause price reductions in commodity markets? (Select TWO)

Removal of production qoutas

Industrial instability

Natural disasters

Low incidents of risk events

Increase in export qoutas

Why choose multiple sourcing for a product?

It is suitable for high value requirements such as Capital goods

It increases the risk of switching costs within the supplier base.

It is suitable for high value requirements such as raw materials

It restricts competition within the supplier base

None

What is a drawback of competitive tendering? (Select TWO)

1. Delivers the lowest price only when it is the primary criterion.
2. Invites more leaders with less incentives for better performances.
3. Reduces the administrative burden for the buyers.
4. Operates where only users can provide a specification of the requirement.

1 & 2 only

1 & 3 only

2 & 3 only

2 & 4 only

None

What sourcing method is best for standard products with many suppliers and no need for innovation?

Single sourcing

Multiple Sourcing

Dual Sourcing

Sole Sourcing

None

Which sources could help enforce compliance in the supplier's organization? (Select TWO)

Auditing by qualified expert workers

Involving independent workers associations

Members of the board investigating compliance

Involving internal stakeholders

Holding regular meetings between buyers side & suppliers side

How is the current ratio (working capital ratio) calculated?

Divide current assets such as cash, debtors and stock by the short term liabilities.

Divide cost of sales by total assets and multiply by one hundred

Divide short term liabilities by current assets after deducting stock.

Divide gross profit by turnover and multiply the result by one hundred.

None

What quotation detail shows a supplier's capacity?

The certifications of quality

The price per unit of the goods

The credit & payment terms

The delivery date or lead timers

None

What import document confirms a sale for international trade?

Letter of credit

Certificate of origin

Bill of lading

Commercial invoice

None

You have defined KPIs for your local stationery supplier that include:

1.To deliver all orders within a one hour period
2.To collect any returns within one hour
ARE THESE KPIs APPROPRIATE

No, because they are not realistic or achievable for a company to fulfill.

Yes, because they are local, so it should be easy for them if they want the business.

No, because you do not want to make demands and ruin future relations

Yes, because the customer is always right so the supplier should do it.

None

What must be ensured when using an open tender for a new product?

There must be an adequate number of supplier's in the market.

The tender will only be Advertised in marketing journals

The bidders must be pre qualified prior to invitation to tender.

The price will only be the criterion for supplier selection.

None

What international standard helps control gifts/hospitality with potential corruption?

ISO 9001

ISO 37001

ISO 14000

ISO 18001

None

Supplier uses raw materials from a country linked to slavery. What is the biggest risk?

Brand damage

Total cost of import

Quality of goods

Carbon footprint

None

What should Ramesh consider when using restricted tendering for NHS IT procurement?

Direct negotiations occur prior to suppliers submitting their offering

The contract will be awarded on strictly pricing criteria

That there are a large number of suppliers in a market.

Suppliers responding to the tender are pre-qualified

None

Why set transfer prices within an organisation?

To manage the financial statements of the organization and to verify supplier performance.

To ensure each product is charged correctly and reduce invoices on hold.

To manage supplier relationships and enhance supplier performances per profit center.

To ensure each division is regarded as a profit center for accounting and performance evaluation purposes

None

Which ratio shows an organisation’s ability to meet short-term financial obligations?

Dividend per share

Liquidity ratio

Profitability ratio

Earnings per share

None

What are features of the Consumer Price Index (CPI)? (Select TWO)

The CPI tracks the performance of selected companies in different stock markets.

The CPI show that prices are influenced by tax thresholds rates rather than inflation rates.

The CPI tracks the average weighted price of selected commodities within the country

The CPI tracks variations in prices in a particular geographical location.

The CPI helps in calculating the exchange rates and tariffs in setting prices for imports.

What are advantages of outsourcing? (Select THREE)

1. Increased labour opportunity
2. Increased expertise by using specialists
3. Reduced turnaround times
4. Organisational focus on core activity

1, 3 & 4 only

2, 3, & 4 only

1,2, & 3 only

1,2 & 4 only

None

What supports long-term ethical sourcing? (Select TWO)

1. Supplier development
2. Supply chain visibility
3. Opportunistic buying
4. Just-in-case supply

1 & 2 only

2 & 3 only

2 & 4 only

1 & 3 only

None

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Before you begin ✍️ You are about to practice the questions set for CIPS-Ethical and Responsible Sourcing L4M4 Paper 20. Please put away any distractions and focus all your efforts on passing. ⏱️Time limit: 1 hour 30 minutes

At the end of your examination practice, you will 📝 View your grade ✅ View the correct answers

NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification.

To begin your exam practice, wait a few seconds for the start button to appear, then tap the START button. "We're rooting for you all the way!" All the best. 😃

Your comment matters to us😊. Please share your experience.

Please proceed to view your grade. Fingers crossed🤗

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Before you begin ✍️

You are about to practice the questions set for
CIPS-Ethical and Responsible Sourcing L4M4 Paper 20.
Please put away any distractions and focus all your efforts on passing.
⏱️Time limit: 1 hour 30 minutes

At the end of your examination practice, you will
📝 View your grade
✅ View the correct answers

To begin your exam practice,
wait a few seconds for the start button to appear,
then tap the START button.
"We're rooting for you all the way!" All the best. 😃