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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions:

1. Which of the following best defines a cartel, and which party in the supply chain is most impacted by it?

A) A formal agreement between competing firms to set prices and limit production; primarily affects consumers
B) A collaboration between manufacturers to innovate; primarily affects suppliers
C) An informal agreement among suppliers to lower costs; primarily affects retailers
D) A coalition of businesses to increase competition; primarily affects shareholders

2. Liam, a Procurement Officer at Zenith Corp, oversees a contract with Apex Supplies, a key supplier of essential manufacturing components. After identifying a critical issue in Apex Supplies' delivery process, which TWO documents should Liam complete?

A) SWOT Analysis and KPIs
B) Corrective Action Plan and SWOT Analysis
C) Root Cause Analysis and Corrective Action Plan
D) KPI's and Root Cause Analysis

3. What is the term for a clause in a contract that, if breached, allows the injured party to claim damages but does not result in the termination of the contract?

A) Warranty
B) Condition
C) Innominate term
D) Representation

4. Which of the following is NOT one of the four fundamental principles and rights at work recognized by the International Labor Organization (ILO)?

A) Abolition of child labor
B) Equal pay for equal work
C) Freedom of association and the right to collective bargaining
D) Elimination of forced or compulsory labor

5. Nahid Cotton Mills Ltd, a leading manufacturer and exporter of high-quality knitting and cotton yarn in Bangladesh, aims to expand internationally and grow its global market to increase profits. The STEEPLED analysis tool can help assess various macro-environmental factors affecting the business. Which of the following factors fall under the social element of this analysis?

A) Inflation and interest rates
B) Waste management initiatives
C) Level of corruption and bribery present
D) Fashion and trends led by local celebrities

Solutions: