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Pass-Sure CIPS Valid Dumps L5M5 Book offer you accurate Exam Tests | Managing Ethical Procurement and Supply (L5M5)

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q85-Q90):

NEW QUESTION # 85
A large retail chain, HyperMart, sources products from multiple suppliers, each specializing in different categories such as electronics, clothing, and groceries. To maintain a diverse selection, HyperMart has contracts with multiple suppliers for each product category. At the same time, these suppliers serve various large retailers and are not solely dependent on HyperMart for their sales.
In this scenario, how does the mutual independence between HyperMart and its suppliers illustrate the dynamics of the power dominance model?

A. HyperMart has significant power over suppliers due to its large purchasing volume
B. Suppliers hold power over HyperMart because they provide unique products that are difficult to substitute
C. The dependence of HyperMart on suppliers for critical products increases supplier power
D. Both HyperMart and its suppliers operate independently without significant power over each other

Answer: D

Explanation:
In this scenario, both HyperMart and its suppliers operate independently. HyperMart has multiple suppliers to choose from, limiting any single supplier's influence. Likewise, suppliers serve multiple large retailers, including HyperMart, preventing dependency on a single customer. This mutual independence creates a balanced power dynamic, where neither party holds significant control over the other.
Thus, the correct answer is Option C.
Reference:
LO-1.4; Page 128-129; Responsible use of power relationships

NEW QUESTION # 86
Which organisation is responsible for the creation of the 2030 Sustainable Development Agenda?

A. ISO
B. NATO
C. ILO
D. UN

Answer: D

Explanation:
This is the UN. There are 17 sustainability goals and these are listed on p.3. For the exam it's a good idea to familiarise yourself with them, but there's no need to learn them all off-by-heart.

NEW QUESTION # 87
Which of the following strategies can procurement professionals use to effectively manage language and cultural barriers in global sourcing?
1. Improving foreign language skills
2. Think and act with an open mind
3. Insisting that English is the only business language used
4. Ensuring proper documentation for all the imports to comply with regulations

A. 1 and 2
B. 2 and 3
C. 2 and 4
D. 4 and 1

Answer: A

Explanation:
Managing language and cultural barriers
O View culture within the language
O Choose location carefully
O Know and communicate business goals
O Check and monitor relationships
O Communicate well
O Improve foreign language skills
O Think and act with an open mind
O Have patience
O Be respectful
The correct answer is Option A.
Reference:
LO-1.3; Page 82-84; Language and culture

NEW QUESTION # 88
An international trade dispute would be resolved by which organisation?

A. ILO
B. WTO
C. UN
D. None - governments must resolve disputes themselves

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The World Trade Organisation (WTO) is responsible for facilitating international trade agreements and resolving disputes between member states. According to the L5M5 study guide (p.87), the WTO provides a dispute settlement mechanism where countries can challenge trade barriers, tariffs, or unfair practices. The UN (A) focuses on peace, security, and development, while the ILO (C) addresses labour standards. Governments (D) do not resolve disputes independently when they are WTO members; instead, they rely on the WTO framework. Procurement professionals must understand the WTO's role, as its rulings influence trade laws, tariffs, and sourcing strategies.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.87

NEW QUESTION # 89
Which of the following scenarios best illustrate instances of bribery?

A. During the audit of a luxury goods distributor, the auditor was asked to take a pen home as a gift. After checking organizational policy, the auditor accepted the gift
B. Upon landing at Dhaka Airport, the customs official informs that a 'standard processing fee' of $20 is required to allow entry into the country upon which a receipt for payment will be given
C. A supplier has just sent the procurement official her invoice for approval. Included in her expenses is a large round sum figure for 'client entertainment' without any price breakdown
D. A buying organization excludes certain bidders from a high-value tender on the basis that these bidders have not detailed what environmental protection measures they would take

Answer: C

Explanation:
Choice B- 'Commercial organisations' commit an offence if they, or any person associated with them, bribes another person intending to obtain or retain business or a business advantage. The purpose of the expenditure is key, not necessarily the amount or what is being purchased. The extent to which the expenditure is incidental is also a factor. An itemised invoice providing a breakdown of the expense will be useful, along with further enquiries of the supplier. As there is no price breakdown, it is a valid reason to suspect the expense and is a form of bribe.
Incorrect answer:
Choice A- It is an offence to bribe another person or to be bribed. As per Bribery Act 2010, failing to prevent a bribe being paid to obtain or retain business or a business advantage is an offence. In this situation, the policy regarding acceptance of gifts was ahered to and is not bribery.
Choice C- Bribing a foreign official is an offence under the Bribery Act 2010. It is important to determine whether the fee is genuine or not; it should be accompanied with official notices and a receipt for payment. As the official informs it is a "standard processing fee" with documentary eveidence like a money receipt, it is not a case of bribery.
Choice D- As the requirement for the buying organisation was to detail environtmetal protection measures for a tender, the buying organisation has the right to reject bidders on this basis. This is not a form of bribery in any way.
Reference:
LO-1.1; Page 47-48; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements

NEW QUESTION # 90
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