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CIPS Ethical and Responsible Sourcing Sample Questions (Q109-Q114):

NEW QUESTION # 109
It is important that buyers take an approach that is reasonable and fair when selecting suppliers to work with.
Which of the following is a voluntary document which can help procurement professionals treat suppliers respectfully?

A. ILO is an organization
B. ISO 9001
C. CIPS Code of Conduct
D. EU Procurement Directive 2014

Answer: C

Explanation:
The correct answer is the CIPS Code of Conduct. This is a voluntary document about doing 'good procurement' i.e. treating suppliers with respect.
EU Procurement Directive is legislation, so isn't voluntary
ISO9001 is about quality management
ILO is an organisation rather than a document

NEW QUESTION # 110
What type of relationship should a buyer seek when making strategic sourcing for their business?

A. partnership
B. collaborative
C. transactional
D. arms-length

Answer: B

Explanation:
The buyer should seek a 'collaborative' relationship. Transactional and arms-length relationships are more suited to tactical sourcing. Partnerships are reserved for joint-ventures.

NEW QUESTION # 111
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.
What relationship style would be best suited?

A. collaborative
B. non-critical
C. transactional
D. adversarial

Answer: A

Explanation:
When single sourcing, you should aim to have a collaborative relationship with the supplier. They're the only ones who provide you with glass, which is a vital part of windows. So you need to make sure you have a good relationship with them and work with them to overcome any issues such as supply chain disruptions. If not- you've got no windows to sell!

NEW QUESTION # 112
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.

A. Product pricing information
B. Rebate information
C. Tender submission pricing
D. Financial stress score
E. Payment history

Answer: D,E

Explanation:
Payment history and financial stress scores provide insights into a supplier's financial health and stability.
This information is crucial for procurement professionals in assessing whether a supplier can fulfill long-term commitments, supporting responsible sourcing by mitigating financial risks.

NEW QUESTION # 113
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?

A. the marketplace is a monopoly
B. that there is little demand in the marketplace
C. there is a threat of substitution
D. demand is exceeding supply

Answer: D

Explanation:
The correct answer is 'demand is exceeding supply'- If everyone wants to buy something, the sup-pliers will likely increase the price.
If there was little demand or there were threats of substitutions, this would likely result in a price decrease.

NEW QUESTION # 114
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Eli Ward Eli Ward

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