L4M4 EXAM DUMP, DUMPS VCE FOR ETHICAL AND RESPONSIBLE SOURCING

L4M4 exam dump, dumps VCE for Ethical and Responsible Sourcing

L4M4 exam dump, dumps VCE for Ethical and Responsible Sourcing

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CIPS Ethical and Responsible Sourcing Sample Questions (Q122-Q127):

NEW QUESTION # 122
What would an EBITDA ratio show you?

  • A. how much of a business's funding is made up of long term debt
  • B. how effectively a business uses its assets to generate sales
  • C. how profitable a business is
  • D. how solvent a business is

Answer: C

Explanation:
EBITDA stands for 'earnings before interest, tax, depreciation and amortization'. This is a profitability ratio and would show how profitable a business is.
EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com)


NEW QUESTION # 123
A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance. Should the company go ahead with the recommendation?

  • A. Yes, implementation would guarantee that the company is compliant with all environmental laws
  • B. Yes, as it would align with, and help to achieve, sustainability goals
  • C. No, ISO standards are too complex for staff and suppliers to understand and follow
  • D. No, because ISO standards are only relevant to large organisations

Answer: B

Explanation:
Adopting ISO environmental standards aligns procurement practices with sustainability goals and helps reduce environmental and social impacts. Although implementing ISO standards may require initial adjustments, they foster long-term benefits by promoting responsible and ethical sourcing practices across the supply chain.


NEW QUESTION # 124
If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

  • A. Complete Due-Diligence on all new suppliers
  • B. Only work with suppliers who have a published Anti-Slavery policy
  • C. Only work with known suppliers
  • D. Complete formal tenders to find the best suppliers

Answer: A

Explanation:
Completing Due Diligence checks will help guard against concerns about unethical business practices.
Not all companies will have a published Anti-Slavery policy- this is only required for large companies.
Known suppliers might have issues that you don't know about so you should always do due-diligence checks on everyone you work with Formal tenders won't sort out ethical issues unless specifically addressed within the tender and strong contract management is put in place afterwards.


NEW QUESTION # 125
Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.

  • A. Supplier websites
  • B. Focus groups
  • C. Professional magazines
  • D. Direct conversations
  • E. Economic indices
  • F. Supplier interviews

Answer: A,C,E

Explanation:
Professional magazines, economic indices, and supplier websites provide secondary data that can be useful in understanding market trends and supplier performance. Responsible sourcing often relies on a mix of primary and secondary data sources to make informed decisions about supplier selection.


NEW QUESTION # 126
Jamilla is looking to find a new supplier who can deliver raw materials of wood and paper to her company Woody Manufacturing Incorporated. The requirement is for regular orders of high volume. She has issued a Request for Quotation. What will this assess the suppliers on?

  • A. the five rights of procurement
  • B. which price is the most ethical
  • C. who can deliver the items the cheapest
  • D. who can deliver the highest quality items

Answer: A

Explanation:
According to p.75 "a RFQ attempts to assess which supplier can achieve the Five Rights of Procurement".
Although price is the only factor considered when using a RFQ- it's important to consider this price in detail; can the supplier deliver the right QUALITY of product for this price?, can they deliver the item WHEN we need it for this price? etc.
The answer is not 'who will deliver it the cheapest' because Jamilla might not pick the cheapest sup-plier. If the cheapest supplier has inferior quality paper, or can only make deliveries every other Tuesday then Jamilla may not select them.


NEW QUESTION # 127
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