Quiz L4M4 - Perfect Ethical and Responsible Sourcing New Dumps Book
Quiz L4M4 - Perfect Ethical and Responsible Sourcing New Dumps Book
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CIPS Ethical and Responsible Sourcing Sample Questions (Q37-Q42):
NEW QUESTION # 37
Which of the following would be considered a strategic sourcing activity?
- A. a bakery ordering eggs
- B. a restaurant ordering plastic cups
- C. an office ordering copier paper
- D. a factory ordering a new machine
Answer: D
Explanation:
a factory ordering a new machine is the correct answer.
Strategic sourcing is for high value, high risk items. The other options given are tactical sourcing as they are low value (eggs, paper and plastic cups).
See p.3 for the differences between tactical and strategic sourcing
NEW QUESTION # 38
Added value can be objectively defined. Is this sentence TRUE?
- A. Yes- added value should be assessed along with price
- B. no- added value is always intangible
- C. no - added value may change from one company to another
- D. Yes- added value is the same for all organisations
Answer: C
Explanation:
The correct answer is 'no - added value may change from one company to another'.
Added value is very subjective. What one person thinks is excellent added value, another may not rate highly.
For example one buyer may consider a supplier having good brand reputation as added value, but another might not care.
The other no answer is incorrect because added value can be tangible or intangible. Tangible means you can touch and see it and intangible means you can't.
NEW QUESTION # 39
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
- A. there are no duty charges or limitations
- B. he will require insurance
- C. the goods are banned in the UK
- D. the goods are subject to tariff quotas
Answer: D
Explanation:
Items of 'Non-Preferential Origin' are subject to tariff quotas and other customs commercial regulations.
'Preferential Origin' goods have no duties or tariffs.
The good news is CIPS have significantly simplified section 3.2 of the syllabus. The new study-guide is much lighter on names of documents and protocols for importing and quotas etc. The focus of this Learning Outcome has shifted more to Inco Terms so I would focus on that for revision, but do make sure you have a basic understanding of documents, law and jurisdiction.
NEW QUESTION # 40
What is a major benefit to using Incoterms when sourcing goods internationally?
- A. it ensures ethical business practices
- B. it replaces lengthy contractual clauses
- C. it ensures value for money
- D. it replaces the need for insurance
Answer: B
Explanation:
Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it's completely random how many you'll get on this topic.
NEW QUESTION # 41
A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market. Which of the following is a benefit of using a full competitive tendering process for this new contract?
- A. Only the procurement manager can decide who wins
- B. All bidders will be treated equally
- C. All suppliers will know how much the others have bid
- D. It is a quick and informal process
Answer: B
Explanation:
A full competitive tendering process ensures fairness by treating all suppliers equally, allowing them to compete on a level playing field. This aligns with ethical sourcing principles, especially in the public sector, where transparency and equal opportunity are paramount.
NEW QUESTION # 42
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