CIPS Ethical and Responsible Sourcing - L4M4 Exam Practice Test
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.
What relationship style would be best suited?
What relationship style would be best suited?
Correct Answer: D
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Intra-company trading allows business units within a large enterprise to supply goods or services to another.
What are the likely objectives of intra-company trading?
Enhances production capacity utilisation
Offsets some of the fixed costs of the supplying entity
Compensates the supplying unit for the less effective technology applied Ensures internal technology always out-performs that of external suppliers
What are the likely objectives of intra-company trading?
Enhances production capacity utilisation
Offsets some of the fixed costs of the supplying entity
Compensates the supplying unit for the less effective technology applied Ensures internal technology always out-performs that of external suppliers
Correct Answer: A
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When might a company send a Request for Information (RFI) instead of a Request for Quotation (RFQ)?
(Select TWO)
(Select TWO)
Correct Answer: A,B,D
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Ji Yuan is a procurement manager who is looking for a new supplier to complete reactive maintenance activities throughout his property portfolio. The reactive maintenance will include an array of plumbing tasks as well as fixing electrical items. Suppliers therefore need to be extremely skilled and knowledgeable about a variety of tasks. Ji Yuan has done some initial research and doesn't believe that there are many suppliers who can complete this type of contract. What type of tender should he use?
Correct Answer: D
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Which of the following should be considered when calculating ratios relating to a supplier's liquidity?
Correct Answer: C
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A buyer is considering trading with a new supplier who is based in a country they have not traded with before.
The buyer needs to understand the anti-bribery risks in the country. Which of the following sources of information would be useful in this regard? Select TWO that apply.
The buyer needs to understand the anti-bribery risks in the country. Which of the following sources of information would be useful in this regard? Select TWO that apply.
Correct Answer: A,D
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Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?
Correct Answer: A
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In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?
Correct Answer: A
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The procurement manager has supplier data: Current Assets = $300 (Stock $200, Debtors $60, Cash $40).
Short-Term Liabilities = $150 (Bank overdraft). Which calculation gives the current ratio?
Short-Term Liabilities = $150 (Bank overdraft). Which calculation gives the current ratio?
Correct Answer: D
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What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?
Correct Answer: B
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An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?
Correct Answer: A
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Which of the following should form part of the initial evaluation process for non-domestic vendor supply proposals?
Correct Answer: D
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What is the best way to prevent potential issues of conflicts of interest?
Correct Answer: B
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A procurement manager is undertaking a financial due diligence of potential suppliers.
Which of the following financial elements are used in the calculation ofgearing?
Select TWO that apply.
Which of the following financial elements are used in the calculation ofgearing?
Select TWO that apply.
Correct Answer: A,D
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