Managing Ethical Procurement and Supply (L5M5) (L5M5) Free Practice Test

Question 1

Which of the following tools allows you to assess internal factors or drivers?

A. STEEPLED

B. SWOT

C. GDP

D. ABC Analysis

Correct Answer: B

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Question 2

Which of the following ISO standards relates to Environmental Management Systems?

A. ISO9001

B. ISO31000

C. ISO28000

D. ISO14001

Correct Answer: D

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Question 3

The main aim of the ILO is to promote rights at work and improve social protection. Is this TRUE?

A. Yes - the ILO is an agency of the UN which deals with labour problems

B. No - the purpose of the ILO is to increase international trade

C. Yes - the ILO sets trade rules between nations

D. No - the ILO was formed in 1975 to encourage globalisation

Correct Answer: A

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Question 4

Jung Ltd is hiring a third-party auditor. Which two requirements should be mandatory?

A. At least 5 years' experience

B. Have sector-specific knowledge

C. Be approved by a certified body

D. Have an auditing qualification

Correct Answer: B,C

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Question 5

Ruben is buying new machinery for his factory. He chooses a more expensive option after considering ESG factors. Why might this be?

A. The higher-priced item will be of better quality

B. The higher-priced item is from a more reputable company

C. In terms of life-cycle costing, the more expensive item may be cheaper in the long term

D. The more expensive item will be more environmentally friendly

Correct Answer: C

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Question 6

The WTO (World Trade Organisation) has several functions. Which of the following is not a function of the WTO?

A. Strive for full employment and high living standards

B. Set trade rules between countries

C. Deal with trade disputes between countries

D. Ensure a high level of labour standards

Correct Answer: D

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Question 7

The UK has introduced several pieces of legislation relevant to CSR. Which legislation ensures that employers keep their workers safe?

A. Working Time (Amendment) Regulations 2001

B. Companies Act 2006

C. Disability Discrimination Act 1995

D. Health and Safety at Work Act 1974

Correct Answer: D

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Question 8

Patrick, a Category Manager, is procuring a high-cost item with many suppliers available and low switching costs. According to the Kraljic Matrix, what type of supplier is this?

A. Bottleneck

B. Strategic

C. Leverage

D. Routine

Correct Answer: C

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Question 9

Berty Boo Ltd conducts an audit checking compliance with regulations, policies, and risk procedures. What type of audit is this?

A. Third-party audit

B. External audit

C. Compliance audit

D. Benchmarking audit

Correct Answer: C

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Question 10

The unethical practice of using information that is not publicly available to trade on the stock market is commonly known as what?

A. Bribery

B. Insider trading

C. Greasing the wheels

D. Kickback

Correct Answer: B

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CIPS Managing Ethical Procurement and Supply (L5M5) (L5M5) Free Practice Test