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| Topic | Details |
|---|
| Topic 1 | - This section examines analyzing market data, obtaining quotations
- tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
|
| Topic 2 | - Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
|
| Topic 3 | - Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
|
| Topic 4 | - Understand the key processes that can be applied to the analysis of potential external suppliers:
|
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CIPS Ethical and Responsible Sourcing Sample Questions (Q186-Q191):
NEW QUESTION # 186
The gross profit of a company can be calculated by using a simple formula. What is this?
- A. assets - liabilities
- B. total revenue - cost of sales
- C. debt owed - total sales
- D. cost of sales - fixed assets
Answer: B
Explanation:
gross profit = total revenue - cost of sales.
Learn all you can about financial ratios and financial statements for the exam- it's a very common topic
NEW QUESTION # 187
Phishing is a type of fraud that is commonly associated with which industry?
- A. Construction
- B. Agriculture
- C. Mining
- D. IT
Answer: D
Explanation:
Phishing is a type of fraud where IT users are sent a link (usually by email) which exposes them to activities of expert cybercriminals.
NEW QUESTION # 188
Who was responsible for introducing the concept of Incoterms?
- A. World Trade Organisation
- B. International Commerce Centre
- C. International Chamber of Commerce
- D. United Nations Commission
Answer: C
Explanation:
Incoterms, short for International Commercial Terms, were introduced by the International Chamber of Commerce (ICC) in 1936. These standardized terms are used globally to define the responsibilities of buyers and sellers in international trade, helping to avoid misunderstandings by clarifying tasks, costs, and risks involved in the delivery of goods.
Reference:
International Chamber of Commerce:
NEW QUESTION # 189
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?
- A. the requirement is complex
- B. interest in the tender opportunity is likely to be high
- C. interest in the tender opportunity is likely to be low
- D. the suppliers are likely to be unqualified
Answer: B
Explanation:
you would use a restricted approach when interest is likely to be high. The buyer needs a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations.
For complex requirements you could use both an open or restrictive tender- the difference between the approaches is about how many bids you're likely to get rather than the complexity of it.
NEW QUESTION # 190
Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?
- A. Yes, this helps to demonstrate the importance of compliance to ESG
- B. No, ESG is not within the scope of a contractual document and should always be treated informally
- C. No, suppliers cannot be legally responsible for ESG compliance; this should be the buying organization
- D. Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously
Answer: A
Explanation:
Incorporating ESG requirements into contractual terms is a valid and increasingly common approach. It ensures that suppliers are contractually obligated to adhere to specific environmental, social, and governance standards, aligning with the buyer's commitment to responsible sourcing. This practice not only promotes ethical behavior but also mitigates risks associated with non-compliance, such as reputational damage or legal penalties.
Exact Extract from Study Guide:
"This unit focuses on responsible procurement practices, ensuring that sourcing decisions align with legal, environmental, and social governance (ESG) principles."
NEW QUESTION # 191
......
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