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  • Exam Name: Ethical and Responsible Sourcing
  • Last Update: 22-Apr-2024
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L4M4 Questions and Answers

Question # 1

Which of the following is an advantage to the TUPE regulations?

A.

Continuity of supply for the buying organisation

B.

Value for money for the buying organisation

C.

Reduced overheads for the buying organisation

D.

Increase in buyer power

Question # 2

Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?

A.

yes- suppliers should quote in their own currencies so there is no risk to the importing company

B.

yes- when suppliers quote in local currencies you are more likely to get better prices

C.

no- quoting the prices in GBP / £ will provide Khalid with better security against cur-rency fluctuations

D.

no- prices should be quoted in GBP / £ as this will reduce the cost of imports

Question # 3

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?

A.

yes- ethics and sustainability form part of 'value for money'

B.

yes- ethics and sustainability show that the products are fit for purpose

C.

no- 'value for money' is concerned with achieving the lowest price

D.

no- 'value for money' only concerns price and if the product is fit for purpose

Question # 4

Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?

A.

capacity, capability and pricing structure

B.

pricing structure, ethics and financial stability

C.

financial stability, capacity and capability

D.

capability, culture and pricing schedules

Question # 5

GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?

A.

the value of public limited companies within a country

B.

the monatary value of the goods manufactured in a financial period

C.

the value of commodities such as steel, oil and wheat at a point in time

D.

average changes in price over a year

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