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CIPS Ethical and Responsible Sourcing Sample Questions (Q56-Q61):
NEW QUESTION # 56
A buyer might opt to do an 'Invitation to Tender' rather than a 'Request for Quotation' process because ...
Answer: B
Explanation:
An Invitation to Tender (ITT) is typically used for complex, high-value procurements where the quality and specific features of the goods or services are of paramount importance. This approach ensures that ethical and responsible sourcing criteria are met, aligning with best practices in procuring specialised goods or services.
NEW QUESTION # 57
Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?
Answer: D
Explanation:
"yes- ethics and sustainability form part of 'value for money' " is the correct answer.
There are several factors that represent value for money and these are listed on p.3. These include; price, delivery, quality, ethics, sustainability and availability.
NEW QUESTION # 58
Bribery is considered an unethical business practice. What constitutes a bribe?
Answer: C
Explanation:
A bribe is anything that is of value to the recipient. It's commonly money, but could also be an item such as a car, or doing someone a favour such as hiring their son.
NEW QUESTION # 59
Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know tocalculate shareholder equity? Select TWO.
Answer: A,C
Explanation:
Shareholder Equity = Total Assets - Total Liabilities
NEW QUESTION # 60
What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?
Answer: C
Explanation:
A risk of pre-planning an audit is the supplier has time to prepare for it. It's a good thing in that they can get their paperwork in order but the downside is they can overprepare so you don't get a realis-tic representation of what they're doing. One way they can do this is coaching staff in what to say to the auditors.
NEW QUESTION # 61
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