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CIPS Ethical and Responsible Sourcing - L4M4 Exam Questions

QUESTION NO: 1
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will be used across multiple doctors'practices and community health centres. Ramesh has reviewed the different tender approaches and has concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?

A. Suppliers responding to the tender are pre-qualified B. Direct negotiations occur prior to suppliers submitting their offer C. The contract will be awarded strictly on pricing criteria D. It is only relevant when there are few suppliers in the market

Correct Answer: A

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QUESTION NO: 2
A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?

A. explains which tariffs apply to the goods B. specifies the country of origin of the goods C. details payment instructions D. details who is responsible for the insurance of the goods during transit

Correct Answer: C

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QUESTION NO: 3
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?

A. Yes, a weighted points system is always the best way to evaluate bids B. Yes, you should follow the same procurement process irrespective of the circumstances C. No, it is not necessary as in this case, you are mainly concerned with price D. No, you should only use a weighted points system for high-spend procurement

Correct Answer: C

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QUESTION NO: 4
If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

A. Only work with suppliers who have a published Anti-Slavery policy B. Complete formal tenders to find the best suppliers C. Only work with known suppliers D. Complete Due-Diligence on all new suppliers

Correct Answer: D

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QUESTION NO: 5
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?

A. Yes, the procurement buyer should assess and take all decisions to award the tender independently of the business managers to avoid conflict of interest B. No, the buyer's recommendations are not relevant to the final sourcing decision, which must be taken by the business managers C. No, it is a lengthy, costly, and unnecessary step for the procurement buyer to engage business managers D. Yes, the procurement buyer can advise on the competitive proposal but should engage with the business managers about the decision to award the tender

Correct Answer: D

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QUESTION NO: 6
Which of the following are key areas of regulations governing responsible procurement and supply?

A. Competitive pricing, unsecured loans, and threats of new entrants B. Company culture, product branding, and staff uniforms C. Digitisation, artificial intelligence, and innovations D. Ethical practice, data protection, and marketplace competition

Correct Answer: D

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QUESTION NO: 7
How can a buyer monitor a supplier's ethical workforce standards throughout a long-term contract?

A. Check the International Labour Organisation's database regularly for information specifically about that supplier B. Contact management directly on a periodic basis, as stipulated in contract terms C. Commission periodic audits by specialist third parties to highlight any malpractice D. Request a completed self-assessment by the supplier on a monthly basis

Correct Answer: C

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QUESTION NO: 8
The sourcing process is considered to include the initial stages of the generic procurement cycle, up to the stage where the contract is awarded to the successful bidder. The stages in the sourcing process may include ...

A. Comparing the supplier's delivery note with the purchase order to confirm the specification B. Reminding the design manager to approve the drawings which will accompany the invitation to tender documents C. Engaging with suppliers to ensure that they are achieving the KPIs set in the contract D. Processing the requisitions to facilitate call-offs against a newly created framework contract

Correct Answer: B

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QUESTION NO: 9
Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender. What is the benefit of incorporating standards in a specification?

A. Standards will ensure suppliers meet all buyer's requirements B. Standards provide clear guidelines and remove ambiguity C. Standards will mirror the buyer's requirements entirely D. Standards will ensure low pricing in tender responses

Correct Answer: B

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QUESTION NO: 10
Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
* Review the insurance clauses in the contract
* Check that the supplier's internal policies are up to date
* Check the supplier's conflict of interest register for their contract
* Review the non-disclosure agreement for their contract

A. 2 and 4 only B. 2 and 5 only C. 1 and 4 only D. 1 and 3 only

Correct Answer: D

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QUESTION NO: 11
Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

A. golden handshake B. verbal contracts C. phishing D. facilitation payment

Correct Answer: D

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QUESTION NO: 12
Amnesty International, Oxfam and CIPS are examples of what type of organisation?

A. public limited companies B. limited liability C. not-for-profit D. partnerships

Correct Answer: C

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QUESTION NO: 13
When might a company send a Request for Information (RFI) instead of a Request for Quotation (RFQ)?
(Select TWO)

A. To determine whether the supplier can fulfil a purchase order already placed B. To negotiate the payment terms detailed in the terms and conditions of sale C. To obtain indicative prices that could be offered for a range of required products D. To ask for details of the product or range of services that the supplier has to offer E. To establish the details of environmental and quality certificates that the supplier may have

Correct Answer: C,D,E

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QUESTION NO: 14
Which of the following are secondary sources of market and supplier data? (Select TWO)

A. Field observation studies B. Published economic indices C. Buyer's database of supplier data D. Marketing communications of suppliers E. Financial and trade press

Correct Answer: B,E

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