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CIPS Ethical and Responsible Sourcing Sample Questions (Q209-Q214):

NEW QUESTION # 209
Which of the following would you expect to find in an Invitation to Tender? Select THREE

A. qualifications required
B. awarding body
C. risk assessments
D. pricing schedule
E. deadline(Correct)

Answer: A,B

Explanation:
An ITT would include details on the awarding body (usually a brief overview of the buyer), the deadline (bids must be received by a certain date) and qualifications required (such as ISO requirements or competency certificates of staff members if it's a service contract). You wouldn't find pricing schedules in an ITT (this would be provided by the supplier in response to the ITT), nor would you find risk assessments (a supplier might be asked to provide one as part of the quality assessment of the tender though).
Invitation To Tender Simply Explained I Thornton & Lowe (thorntonandlowe.com)

NEW QUESTION # 210
For complex and high value tenders, which document is the most appropriate to send to those suppliers who have already been appraised and deemed suitable?

A. RFQ
B. PQQ
C. RFT
D. ITT

Answer: D

Explanation:
The correct answer is Invitation to Tender. This is sent out to suitable suppliers inviting them to bidfor the opportunity.
A PQQ - pre-qualification questions naire- is sent to suppliers to see if they are suitable. The question states these suppliers have already been deemed suitable, so they've already passed PQQ A RFQ - request for quotation- would be used when the only variable is price, so is not suitable for complex tenders.
RFT isn't a thing. I made the last one up.

NEW QUESTION # 211
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?

A. gearing ratio
B. acid test
C. current ratio
D. gross profit margin

Answer: A

Explanation:
The correct answer is 'gearing ratio'.
Gearing measures how much of a company's funding is based on long-term debt or loans- this would be affected by a steep rise in inflation. If a company has a mortgage on their offices or facto-ry and they need to remortgage and inflation has gone up a lot- they'll be paying a lot more on their mortgage. This will severely effect the gearing ratio as they'll have more outgoings than incoming.
Gross profit margin COULD be affected by inflation, for example if you've got hyper-inflation and the country goes into recession and people stop buying your product. However, this answer isn't al-ways right and depends on many factors- the industry, the product, the company etc, so for the purpose of CIPS should be discounted.
There are many industries which are immune to inflation.

NEW QUESTION # 212
What type of relationship should a buyer seek when making strategic sourcing for their business?

A. arms-length
B. transactional
C. collaborative
D. partnership

Answer: C

Explanation:
The buyer should seek a 'collaborative' relationship. Transactional and arms-length relationships are more suited to tactical sourcing. Partnerships are reserved for joint-ventures.

NEW QUESTION # 213
Which of the following is true for CIPS members who sign and comply with the CIPS Code of Conduct?
Members can ...
* gain an understanding of ethical and successful business operations
* acquire automatic entitlement to government sponsorship
* enjoy continued CIPS membership and access to resources
* bypass the need to comply with other voluntary or legal codes

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

Answer: B

Explanation:
CIPS members who adhere to the CIPS Code of Conduct gain insight into ethical business practices and retain their membership and access to CIPS resources. This commitment to ethical standards supports responsible sourcing by fostering a community of professionals who value integrity and best practices.

NEW QUESTION # 214
......

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