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CIPS Ethical and Responsible Sourcing Sample Questions (Q125-Q130):

NEW QUESTION # 125
Chantelle is a procurement apprentice working in the public sector for an education organisation. As a result of studying towards the CIPS qualification, Chantelle has become aware of the importance of incorporating sustainability and environmental award criteria into tender exercises and has informed her manager of this.
For the purchase of IT supplies, which requirement could be evaluated within the sustainability and environmental award criterion?

A. Competitive pricing
B. After-sales support
C. Delivery lead time
D. Consolidated delivery

Answer: D

Explanation:
Incorporating sustainability and environmental criteria into procurement decisions is essential for promoting responsible sourcing practices.Consolidated deliveryrefers to combining multiple shipments into a single delivery, which can significantly reduce the carbon footprint associated with transportation. By minimizing the number of deliveries, organizations can decrease fuel consumption and emissions, aligning with environmental sustainability goals.
This practice is particularly relevant in the procurement of IT supplies, where frequent, small deliveries can be consolidated to improve efficiency and environmental performance. Evaluating suppliers based on their ability to provide consolidated deliveries demonstrates a commitment to sustainable procurement practices.
References:
CIPS Study Guide: Ethical and Responsible Sourcing - Study Guides - CIPS Quizlet: CIPS L4M4 Ethical and Responsible Sourcing Flashcards

NEW QUESTION # 126
A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance. Which Incoterm has been agreed?

A. EXW - Ex Works
B. FOB - Free on Board
C. FCA - Free Carrier
D. CIP - Carriage and Insurance Paid

Answer: A

Explanation:
Under the EXW (Ex Works) Incoterm, the buyer assumes responsibility for transportation and export clearance from the seller's premises. This term aligns with cost-saving measures and the buyer's internal capabilities for logistics, supporting efficient and responsible sourcing.

NEW QUESTION # 127
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?

A. the amount of money from retained earnings
B. the profit from sales once tax has been deducted
C. the amount of money held in the company's bank account
D. the owners' residual claim once all debt has been paid

Answer: D

Explanation:
shareholder equity = the owner/s of the organisation's residual claim once all debts have been paid. What Is Shareholder Equity (SE) and How Is It Calculated? (investopedia.com)

NEW QUESTION # 128
The bill of lading is one of the main documents associated with sea freight within international sourcing.
Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

A. It provides evidence of the contract of carriage for the goods
B. It provides evidence guaranteeing the use of Incoterms on the goods
C. It provides evidence that the goods are fully insured in transit
D. It provides evidence of the title of ownership of the goods
E. It provides evidence of the country of origin of the goods

Answer: A,D

Explanation:
The bill of lading serves as both a receipt of goods and a document of title, which means it confirms the contract of carriage and can transfer ownership. Responsible sourcing in international trade requires precise documentation, which is why the bill of lading is critical in verifying both carriage and title.

NEW QUESTION # 129
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

A. reputation
B. distribution
C. price
D. location
E. quality

Answer: C,E

Explanation:
Price and Quality are the two considerations when marking a competitive tender.
Location, distribution and reputation may be considered for SOME tenders, but these would be sub-categories that fall under 'quality questions.

NEW QUESTION # 130
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