Ethical and Responsible Sourcing
Last Update Feb 28, 2026
Total Questions : 301
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An international supplier of shirts provides four different prices for each garment depending on the Incoterm selected by the buyer. Which Incoterm would support achieving the lowest unit price per garment?
A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements. The buyer will make the contract award decision based on which of the following?
The bill of lading is one of the main documents in sea freight. Which of the following statements represent its uses? (Select TWO)
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE
The balance sheet (statement of financial position) is one of the financial statements used in assessing a supplier’s financial stability. The balance sheet contains information on such items as …
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally. Which of the following is described by Incoterms? Select THREE.
Sourcing is part of the procurement cycle and is likely to be used in conjunction with which activities? (Select TWO)
A buyer for a large manufacturing organisation is assessing a sole-supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole-supplier proposal?
Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
Review the insurance clauses in the contract
Check that the supplier's internal policies are up to date
Check the supplier's conflict of interest register for their contract
Review the non-disclosure agreement for their contract
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?
Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?
The bill of lading is one of the main documents associated with sea freight within international sourcing. Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.
A procurement manager has developed some reports in order to analyse total company expenditure on bought-in goods and services from external suppliers. Expenditure information by product category or supplier can achieve which of the following? Select TWO that apply.
Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier's liquidity? Select TWO.
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.
Jamilla is looking to find a new supplier who can deliver raw materials of wood and paper to her company Woody Manufacturing Incorporated. The requirement is for regular orders of high volume. She has issued a Request for Quotation. What will this assess the suppliers on?
Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?
Incoterms are designed to be understood and interpreted on a worldwide basis. What is the interpretation for FOB (Free on Board)?
The gross profit of a company can be calculated by using a simple formula. What is this?
Zeb is a Procurement Manager at Zig Zag Zips manufacturing. The organisation has a complex supply chain and works with 46 different suppliers, many of these international. Which of thefollow-ing would be the most useful for Zeb to address issues of Modern Slavery?
Avram is a buyer for a private sector electrical components company and is promoting the advantages of competitive bidding.
When is competitive bidding appropriate?
Select TWO that apply.
Which of the following are key areas of regulations governing responsible procurement and supply?
Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?
Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?
A company has actively included supporting of disadvantaged groups within their ESG commitment. Which of the following groups are considered disadvantaged?
Incoterms are divided into four main groups to follow the movement of goods covering the exporter’s premises, export and import points, and cost and risk. Which letters represent the four groups of Incoterms?
Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?
Which models would be appropriate for analysis of the supply market?
Porter's Five Forces
Porter’s Value Chain
STEEPLED
Ishikawa Fishbone
Philip is a procurement manager at XYZ Company which imports raw materials from abroad. Sup-pliers provide quotes to Philip in their local currency. Is this the best way to reduce the risk to XYZ Company of currency fluctuations?
A procurement manager for a major retail group is using ratio analysis to assess the financial viability of suppliers who have tendered for a logistics services tender. The recommended supplier has a current ratio of 0.6. What are the potential consequences of awarding the contract to this supplier, given their current ratio is below 1?
When assessing the financial performance of a potential supplier, it is important to understand how much gross profit they are making. The gross profit margin ratio uses which of the following pieces of information from the profit and loss (statement of financial performance)? Select TWO that apply.
When assessing social responsibility elements of a supplier's proposal, what type of supporting evidence could a supplier provide?
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?
Supplier selection focuses on which of the following?
Supplier suitability and capability of meeting requirements
Which pre-qualified supplier represents the best outcome
Financial stability and quality culture of the supplier
Most time-efficient tender from a supplier
Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down his supplier base and purchase from one supplier.
Which type of sourcing arrangement has Ramesh began?
GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?
When working closely with a supplier, waste can be reduced which can lead to improved business functions and cost savings. Which of the following are wastes that can be removed from the supply chain? Select THREE.
Phishing is a type of fraud that is commonly associated with which industry?
Compared with single sourcing, what is a key advantage to dual or multiple sourcing? Select TWO
Which of the following are procurement procedures permissible under EU Public Procurement rules? Select TWO that apply.
A buyer has been working with managers on a tender and is now assessing supplier proposals. Is it good practice for the procurement buyer to make sourcing recommendations?
A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?
One approach to managing supply risk is having multiple suppliers for a product. Which condition justifies multiple sourcing?
A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year’s purchase orders and has been asked to confirm the month of order placement. The buyer has found three trends:
In January and April, the supplier's local currency is stronger
November typically has the lowest demand
May typically has the highest demand
Which month should the buyer plan to place the purchase order?
A prequalification questionnaire can allow a buyer to determine whether or not a potential supplier shares the same ethical values at an early stage of a procurement process. Obtaining confirmation that a supplier has not previously been convicted of breaches of modern slavery legislation belongs to which form of evaluation criteria?
What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?
The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?
Scott is a procurement manager who is evaluating a bid from a supplier to provide a new IT system to his office that will be used by 100 employees. He is considering the total life-cycle costs. Which of the following should Scott consider? Select THREE
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers. Which of the following is Luke now likely to know about the marketplace? Select THREE
A buyer might opt to do an 'Invitation to Tender' (ITT) rather than a 'Request for Quotation' (RFQ) process because …
Which of the following items would you expect to find on a balance sheet? Select THREE
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present. What type of sourcing relationship is a buyer likely to have with this supplier?
A buyer is considering trading with a new supplier who is based in a country they have not traded with before. The buyer needs to understand the anti-bribery risks in the country. Which of the following sources of information would be useful in this regard? Select TWO that apply.
Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?
A chief procurement officer (CPO) reviews a tender process and recommendation before making the final submission to the board of directors for approval. The CPO notices that the evaluation team assessed technical and financial capacity but did not conduct an assessment and due diligence on the supplier's environmental, social, governance, anti-bribery, and corruption practices and processes. The CPO has decided to forward the report to the board for approval and seek reassurance from the supplier at a later date once the contract has been signed. Was the CPO's decision the correct one?
A restricted tender process involves supplier selection. This process focuses on which of the following?
Production capacity
Decommissioning costs
Total life cost
Financial stability
A buyer of bakery products sees wheat shortages due to poor harvests but demand remains high. How does this affect negotiation?
What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?
In which circumstances would it be relevant to apply the Pareto principle (80/20 rule) to supplier expenditure analysis? (Select TWO)
It is important that buyers take an approach that is reasonable and fair when selecting suppliers to work with. Which of the following is a voluntary document which can help procurement professionals treat suppliers respectfully?
Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?
Incoterms are divided into four main groups to follow movement of goods covering exporter’s premises, export/import points, and cost/risk. Which letters represent the groups?
Which of the following should form part of the initial evaluation process for non-domestic vendor supply proposals?
Which of the following is a strategic cost associated with outsourcing cyber-security from an in-house IT function to a specialist supplier?
A buyer might opt to do an 'Invitation to Tender' rather than a 'Request for Quotation' process because ...
A 'carnet' provides evidence of the origin of goods shipped in an international trade transaction. Is this statement correct?
Which documents are used to allow the movement of goods?
Export or import license
Non-disclosure agreement
Customs declaration
Conflict of interest declaration
AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.
How can this information help the consultant decide on the procurement strategy?
An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?
Which of the following might encourage an organisation to outsource their IT function?
What are the risks of outsourcing?
Loss of control of a project
Loss of assets
Loss of future business opportunities
Loss of private information
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. Which of the following factors is likely to justify the decision to make the requirements internally?
Which of the following factors are typically considered when assessing a supplier's financial capacity?
TESTED 01 Mar 2026
