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| Section | Objectives |
|---|---|
| Supply Chain Risk and Compliance | - Supplier compliance and monitoring - Managing ethical risks in sourcing |
| Corporate Social Responsibility (CSR) | - CSR frameworks and standards - Stakeholder expectations and governance |
| Ethics in Procurement and Supply | - Codes of conduct and ethical decision-making - Principles of professional ethics |
| Responsible Sourcing | - Social responsibility and human rights - Sustainability in supply chains - Environmental considerations and impacts |
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NEW QUESTION # 273
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?
Answer: C
NEW QUESTION # 274
Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?
Answer: C
Explanation:
tactical is the correct answer; items that are short-term or low value are considered tactical.
Strategic sourcing is long term and high value.
Outsourcing is moving a key business function to an external company.
Insourcing is bringing a previously outsourced part of the company back in-house.
NEW QUESTION # 275
An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender.
Which of the following should be considered?
Answer: A
Explanation:
Social value is about benefitting the local community / society. Therefore of those options listed, use of local labour is the most appropriate to consider.
NEW QUESTION # 276
Why do tenders often have longer timescales in the public sector compared with private sector?
Answer: D
Explanation:
Public sector procurement is governed by statutory regulations (such as EU Procurement Directives or UK Public Contracts Regulations) that impose minimum timescales for fairness, transparency, and supplier access. For example, open tendering requires a minimum response period to allow all interested suppliers to participate equally. While stakeholder involvement and debriefing are also features of public procurement, the defining reason for longer timelines is legal compliance. Private sector organisations, by contrast, can set flexible timelines based on complexity and urgency. Responsible sourcing in public procurement ensures equitable access and avoids supplier discrimination.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implications" - public vs private procurement obligations.
NEW QUESTION # 277
Which financial statement would be used for analysing an organisation's assets?
Answer: C
Explanation:
Thebalance sheet, also known as the statement of financial position, provides a snapshot of an organisation's assets, liabilities, and equityat a specific point in time. It is the primary financial statement used to analyse what an organisation owns and owes. The profit and loss account focuses on income and expenses, while the cash flow statement shows cash movements. Credit rating reports summarise financial risk but are not financial statements. Ethical and responsible sourcing requires procurement professionals to understand balance sheets to assess supplier stability and reduce supply continuity risks.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - financial statements and supplier assessment.
NEW QUESTION # 278
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