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  • Exam Name: Ethical and Responsible Sourcing
  • Last Update: 29-May-2024
  • Questions and Answers: 120
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L4M4 Questions and Answers

Question # 1

Ji Yuan is a procurement manager who is looking for a new supplier to complete reactive maintenance activities throughout his property portfolio. The reactive maintenance will include an array of plumbing tasks as well as fixing electrical items. Suppliers therefore need to be extremely skilled and knowledgeable about a variety of tasks. Ji Yuan has done some initial research and doesn't believe that there are many suppliers who can complete this type of contract. What type of tender should he use?








competitive dialogue

Question # 2

A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?


details who is responsible for the insurance of the goods during transit


specifies the country of origin of the goods


explains which tariffs apply to the goods


details payment instructions

Question # 3

A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present. What type of sourcing relationship is a buyer likely to have with this supplier?


single sourced


sole sourced


multiple sourced


dual sourced

Question # 4

Which of the following are signs that modern-day slavery might be taking place within the supply chain? Select THREE.


suspiciously low labour costs


poor quality products


workers that live on-site


suppliers who speak English as a second language


supplier based in a country with a low score on the Corruption Perception Index

Question # 5

Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?


use the Return on Investment Ratio


do an Acid Test


work out the supplier's EBITDA


work out the supplier's gearing ratio

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