Passing exam with L5M5 latest training materials
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Updated: Sep 05, 2025
No. of Questions: 122 Questions & Answers with Testing Engine
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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions:
1. A company frequently ships high-value goods internationally, and the logistics team identifies a significant risk of financial loss due to potential cargo theft or damage during transit. To mitigate this risk, the company hires an external freight forwarder who provides insurance coverage and assumes full responsibility for the goods while in transit.
What is the most appropriate risk management strategy in this scenario?
A) Terminate
B) Transfer
C) Tolerate
D) Treat
2. Company X's CSR initiatives focus on community support through profit donations to local charities, organizing employee volunteer days, and providing scholarships for underprivileged students. In contrast, its ESG practices prioritize environmental sustainability by reducing its carbon footprint with renewable energy, cutting waste by 20% in five years, and promoting leadership diversity.
What distinguishes Company X's CSR initiatives from its ESG practices?
A) CSR initiatives emphasize community support, while ESG practices target environmental sustainability and governance improvements
B) CSR initiatives are mandatory for compliance, while ESG practices are optional
C) CSR initiatives only involve philanthropic activities, whereas ESG practices focus solely on environmental sustainability
D) There is no distinction; both CSR and ESG are the same
3. A manufacturing company experienced frequent breakdowns of a critical machine due to improper maintenance. To resolve this, management is investigating the root cause and implementing measures to prevent future occurrences. What type of plan is the management prioritizing?
A) Risk mitigation plan
B) Corrective Action Plan
C) Root Cause
D) Preventative Action Plan
4. While low-cost country sourcing can provide substantial cost savings for buyers, it also comes with significant risks. Which of the following should be avoided as a potential target for low-cost country sourcing?
A) A country consisting of workers with detailed knowledge of the product
B) A country where companies use Just in Time (JIT) method of SCM
C) A country with stable tax and tariff structures
D) A country that is remote geographically but with good transportation routes
5. Which of the following form the 'Triple Bottom Line'? Select THREE
A) profit
B) planet
C) people
D) placement
E) product
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: A,B,C |
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