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CIPS Ethical and Responsible Sourcing Sample Questions (Q44-Q49):

NEW QUESTION # 44
Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable. Which of the following should Dylan look for in terms of quality management when appraising the suppliers?

A. ESG
B. Carter's 10 Cs
C. conformance specification
D. ISO9001

Answer: D

Explanation:
ISO9001 is Quality Management so is therefore the correct answer. The other options can be used to appraise suppliers but do not link directly or fully to Quality Management.

NEW QUESTION # 45
Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know tocalculate shareholder equity? Select TWO.

A. total assets
B. net profit
C. total liabilities
D. net income

Answer: A,C

Explanation:
Shareholder Equity = Total Assets - Total Liabilities

NEW QUESTION # 46
Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.

A. The existence of policies and initiatives toward more sustainable packaging and materials
B. Certification to the management system ISO 9001
C. The existence of Total Quality Management (TQM) and a continuous improvement culture
D. Certification to the management system ISO 14001
E. The supplier's environmental impact analysis

Answer: B,C

Explanation:
Total Quality Management (TQM) practices and ISO 9001 certification are indicators of a supplier's commitment to quality. Responsible sourcing evaluates these factors to ensure suppliers meet high-quality standards and continuous improvement expectations.

NEW QUESTION # 47
Which of the incoterms listed are suitable for transporting goods via train?

A. FAS
B. EXW
C. FOB
D. CRF

Answer: B

Explanation:
EXW- exworks is a suitable incoterm for transporting goods both by rail and boat. It can be used regardless of the mode of transport.
The other three are for transport over water. P. 143 Shipping Incoterms: the Complete Guide - Guided Imports Some students report a lot of questions on Incoterms in the exam, some say they only had 1. Best bet is to learn them if you possibly can.

NEW QUESTION # 48
When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit. Which of the following could these be? Select TWO

A. The organisation has lots of fixed assets
B. The organisation has no loans or credit cards
C. The organisation is new
D. The organisation does not employ many people

Answer: A,B

Explanation:
New organisations or those with no loans/ credit cards may have low credit scores. This is simply because they do not have enough financial history to make their scores good. That means banks au-tomatically class them as higher risk, because they simply don't know that they're trustworthy yet.

NEW QUESTION # 49
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