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NEW QUESTION # 238
A buyer is considering trading with a new overseas supplier and wants to assess anti-bribery risks in that country. Which information sources would be useful? (Select TWO)
Answer: A,C
Explanation:
Local anti-corruption laws (A) provide insight into the legal framework and enforcement environment, while Transparency International (B) publishes the Corruption Perceptions Index and reports on bribery risks worldwide. These are reliable sources for assessing corruption levels and associated risks. UNSDGs set broad sustainability goals but not country-specific corruption risks. The ICC deals with arbitration, not anti-bribery.
ISO standards provide frameworks for compliance but do not analyse country risk. Responsible sourcing requires due diligence on governance environments to mitigate bribery risks and comply with anti-corruption legislation such as the UK Bribery Act.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethical risk, corruption, and international frameworks.
NEW QUESTION # 239
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
Answer: D
Explanation:
Intra-company trading aims to optimize internal resources by enhancing production capacity utilization and offsetting fixed costs. By supplying goods or services internally, organizations can achieve economies of scale and better allocate resources. However, compensating for less effective technology or ensuring superior internal technology over external suppliers are not primary objectives of intra-company trading.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.1.2: Make or buy decisions and the role of intra-company trading
NEW QUESTION # 240
Which beneficial outcomes would result from a procurement decision to change supply to alocal sourcefor a services contract?
Select TWO that apply.
Answer: A,E
Explanation:
Sourcing services locally can deliversocial and economic benefits, including the creation oflocal employment opportunitiesandeconomic stimulation within the community. Local suppliers often reinvest in the local economy, supporting regional development and social value objectives. While reduced environmental impact may occur, it is not guaranteed for services, and contract management requirements remain regardless of supplier location. Ethical and responsible sourcing encourages consideration of social value outcomes, particularly where procurement decisions can positively impact local communities and stakeholders.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - social value; local sourcing benefits.
NEW QUESTION # 241
Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to. Which of the following is a benefit of incorporating standards as a requirement within a specification?
Answer: B
Explanation:
Incorporating recognized standards into procurement specifications provides clear guidelines for suppliers, reducing ambiguity and ensuring that products or services meet predefined quality and safety criteria. This is particularly important in sectors like healthcare, where equipment must adhere to strict standards to ensure patient safety and operational efficiency.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.3: Specifications and Standards
NEW QUESTION # 242
Which of the following incoterms has the lowest risk to the buyer?
Answer: C
Explanation:
The lowest risk to the buyer is 'delivered duty paid'. This is because the supplier does all the work transporting the items to the buyer's premises. Incoterms_2020_chart | Intersped
NEW QUESTION # 243
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