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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q87-Q92):

NEW QUESTION # 87
When creating a Sustainable Procurement Policy, which of the following steps should be conducted first?

A. Consult with stakeholders
B. Identify who will take lead responsibility
C. Draft the policy
D. Gather information

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.33) outlines nine steps to creating a Sustainable Procurement Policy. The very first step is to identify who will take lead responsibility (C). This ensures accountability from the outset. Once a leader is appointed, the next steps include gathering information, drafting the policy, consulting with stakeholders, obtaining approval, and monitoring. Without clear leadership, policies risk being ineffective. Procurement professionals must ensure accountability and leadership to drive sustainability objectives effectively.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.33

NEW QUESTION # 88
What is the primary purpose of a supplier code of conduct?

A. To define the penalties for non-compliance in supplier contracts
B. To establish the expectations and standards for supplier behavior and practices
C. To ensure suppliers take full responsibility for product quality
D. To outline the payment terms and delivery schedules for suppliers

Answer: B

Explanation:
Choice B- A supplier code of conduct sets clear guidelines on ethical, social, environmental, and legal responsibilities that suppliers are expected to follow. Therefore B is the correct answer.
Incorrect answer:
Choice A- This is not the primary purpose of a supplier code of conduct. While the code may mention consequences for non-compliance, its primary focus is on establishing ethical and operational standards rather than detailing penalties.
Choice C- Payment terms and delivery schedules are typically included in contractual agreements, not in a supplier code of conduct. The code focuses more on ethical and sustainability standards rather than logistical or financial details.
Choice D- While product quality may be a part of a supplier's responsibilities, it is usually addressed in specific quality agreements or technical specifications rather than the supplier code of conduct. The code primarily deals with broader principles such as ethical labor practices, environmental impact, and compliance with laws.
Reference:
LO-2.2; Page 184; Monitoring Contract Performance

NEW QUESTION # 89
Ahmed Electronics is conducting an audit to assess its compliance with regulatory requirements, security protocols, and risk management policies. What type of audit does this represent?

A. 3rd party audit
B. compliance audit
C. benchmarking audit
D. external audit

Answer: B

Explanation:
Choice C - A compliance audit is a type of audit conducted to ensure that an organization adheres to regulatory guidelines, security policies, and risk management procedures. Its primary focus is on verifying conformity with external regulations, internal policies, and standards. This is the correct answer.
Incorrect answer:
Choice A - Focuses on financial statements and is usually conducted by an independent body for external stakeholders.
Choice B - Performed by an external organization to assess compliance with specific standards, often for certification purposes.
Choice D- Involves comparing an organization's performance or practices against industry standards or best practices, not necessarily focused on compliance.
Reference:
LO-2.3; Page 207-208; Sourcing third parties for auditing services

NEW QUESTION # 90
A multinational retail company faces cybersecurity incidents, including unauthorized access to customer payment data and phishing attacks. To strengthen information security, the board seeks a globally recognized framework. The IT team must recommend the most suitable ISO standard for managing these risks systematically. Which ISO standard should the company adopt?

A. ISO 20400
B. ISO 27001
C. ISO 9001
D. ISO 45001

Answer: B

Explanation:
Choice A - ISO 9001 focuses on quality management and ensuring consistent product or service delivery. While it is valuable for improving operational processes, it does not specifically address information security risks or cybersecurity threats.
Choice B - ISO 27001 is the globally recognized standard for Information Security Management Systems (ISMS). It helps organizations systematically manage and improve their cybersecurity practices, protect customer data, and mitigate risks such as unauthorized access and phishing attacks..
Choice C - This standard focuses on sustainable procurement, ensuring ethical and environmental considerations in supply chain management. It is not relevant to cybersecurity.
Choice D- This standard addresses, occupational health and safety (OH&S), helping organizations improve workplace safety and reduce risks of injuries but does not cover information security.
Reference:
LO-3.3; Page 314; Importance of updating internal and governance standards

NEW QUESTION # 91
Fresh Delight, a natural fruit juice company, sources fruit from Citrus Co. under a contract with a "time of the essence" and "retention of title" clause. Citrus Co. delivers fruit every Monday, but Fresh Delight has failed to pay for the last two deliveries. Claiming ownership under the retention of title clause, Citrus Co. attempts to reclaim the most recent delivery. Does Citrus Co. have a valid legal claim to retrieve the goods despite having delivered them?

A. No - if Fresh Delight signed for the delivery, Citrus Co. has no right to reclaim it
B. Yes - the product can be reclaimed under any circumstances
C. No - if the delivery was made on time, it belongs to Fresh Delight
D. Yes - the product still belongs to Citrus Co

Answer: D

Explanation:
Choice A- The retention of title clause in the contract means Citrus Co. retains ownership of the goods until Fresh Delight has fully paid for them. Even though the goods were delivered, the failure to pay gives Citrus Co. the right to reclaim them. Ownership (title) does not pass to Fresh Delight until payment is made. Correct answer.
Incorrect answer:
Choice B- While the retention of title clause allows Citrus Co. to reclaim the goods in this case, this right is not absolute. The clause must align with relevant legal frameworks, such as insolvency laws, which may limit Citrus Co.'s ability to reclaim goods in certain situations. Thus, goods cannot always be reclaimed "under any circumstances." Choice C- Signing for delivery does not override a retention of title clause. Even if Fresh Delight accepted and signed for the delivery, the ownership of the goods remains with Citrus Co. until payment is received.
Choice D- Timely delivery has no bearing on the ownership of the goods when a retention of title clause is in place. Ownership is tied to the payment, not the delivery schedule. Hence, Citrus Co. can still reclaim the goods if payment hasn't been made.
Reference:
LO-2.2; Page 190; Monitoring Contract Performance

NEW QUESTION # 92
......

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Valid L5M5 Exam Objectives | L5M5 Guaranteed Success

Managing Ethical Procurement and Supply (L5M5) latest study dumps & L5M5 simulated test torrent

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q87-Q92):

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