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CIPS Ethical and Responsible Sourcing Sample Questions (Q54-Q59):
NEW QUESTION # 54
Which of the following would you expect to find in an Invitation to Tender? Select THREE
- A. pricing schedule
- B. risk assessments
- C. awarding body
- D. qualifications required
- E. deadline
(Correct)
Answer: C,D
Explanation:
An ITT would include details on the awarding body (usually a brief overview of the buyer), the deadline (bids must be received by a certain date) and qualifications required (such as ISO requirements or competency certificates of staff members if it's a service contract). You wouldn'tfind pricing schedules in an ITT (this would be provided by the supplier in response to the ITT), nor would you find risk assessments (a supplier might be asked to provide one as part of the quality assessment of the tender though).
Invitation To Tender Simply Explained I Thornton & Lowe (thorntonandlowe.com)
NEW QUESTION # 55
Which of the following is a regulatory body which protects the rights of workers?
- A. ISO
- B. WWF
- C. ILO
- D. FairTrade
Answer: C
Explanation:
ILO = the International Labour Organisation.
ISO is the International Standardisation Organisation- they also come up in this exam.
Fair Trade is about paying suppliers properly.
WWF is the World Wildlife Foundation, or if you watched wrestling in the 90s, the original WWE. You do not need to know about wildlife or wrestling for this exam.
NEW QUESTION # 56
A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?
- A. the buyer should ask suppliers to be accredited to ISO9001a supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs
- B. compliance with Codes of Conduct from professional bodies is mandatory
- C. ethical behaviour is impossible to determine as issues such as Modern Slavery often go undetected
Answer: A
Explanation:
A supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs is the correct answer.
The other options are wrong:
1) Compliance with Codes of Conduct from professional bodies is optional. E.g. CIPS - no organi-sation is forced to comply with CIPS.
2) Unethical behaviour is not impossible to detect, it may be difficult but with correct due diligence and things like audits it's completely possible
3) ISO 14001 is quality management so is irelevent.
NEW QUESTION # 57
A company's balance sheet will show you which of the following?
- A. equity, assets and liabilities
- B. revenue, profit and expenses
- C. cash coming in and out of the business
- D. profit, loss and assets
Answer: A
Explanation:
a balance sheet shows 'equity, assets and liabilities'. The other financial statements you need to know for this exam are cash flow statements and and income statements.
If you're not familiar with these three I strongly recommend you do some further reading on this before the exam if you can. This is helpful: How the 3 Financial Statements are Linked Together - Step by Step (corporatefinanceinstitute.com)
NEW QUESTION # 58
Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.
- A. exportation rules and tariffs
- B. lower operating costs
- C. payments by electronic bank transfer
- D. importation rules and tariffs
Answer: D
Explanation:
The correct answer is importation rules and tariffs. This is because in offshoring some of the manufacturing will be done in another country then shipped back to the UK. The products will have to go through customs so may be subject to tariffs and duties.
Steff's not exporting anything in the scenario and paying electronically and getting lower costs are not RISKS.
NEW QUESTION # 59
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