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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing
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CIPS Ethical and Responsible Sourcing Sample Questions:
Which of the following types of data do credit rating agencies include in their assessment of organisations?
(Select TWO)
- A. Value for money
- B. Payment history
- C. Financial obligations
- D. Value chains
- E. Ecosystems
Correct Answer: B,C 🗳️
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FTSE100 and Sensex are examples of what?
- A. commodity indices
- B. financial reports
- C. public sector organisations
- D. stock markets
Correct Answer: D 🗳️
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Which financial statement would be used for analysing an organisation's assets?
- A. Cash flow statement
- B. Profit and loss account (statement of financial performance)
- C. Balance sheet (statement of financial position)
- D. Credit rating reports
Correct Answer: C 🗳️
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A procurement manager has decided to use a local newspaper to source quotes from external suppliers. Why is it important to advertise tenders? Select TWO that apply.
- A. To avoid complex bids
- B. To gain tactical sourcing
- C. To gain insights from the market
- D. To gain value for money
- E. To gain green procurement
Correct Answer: A,B,C,D 🗳️
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A procurement manager for a major retail group is using ratio analysis to assess the financial viability of suppliers who have tendered for a logistics services tender. The recommended supplier has a current ratio of
0.6. What are the potential consequences of awarding the contract to this supplier, given their current ratio is below 1?
- A. The supplier will be unable to cover long-term liabilities from revenues
- B. The supplier will have cash reserves to cover unexpected expenses
- C. The supplier will be unable to pay its short-term liabilities using current assets
- D. The results of the current ratio do not mean anything as long as the supplier has proven technical merit
Correct Answer: C 🗳️
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