Pass CIPS L5M5 Exam Info and Free Practice Test [Q23-Q45]

Q23. Demand forecasting collects data on a company’s supply capacity for an item, including current and projected supply categorized by industry and product end use. Is this statement TRUE?

Q24. What is the term for a clause in a contract that, if breached, allows the injured party to claim damages but does not result in the termination of the contract?

Q25. Supply forecasting investigates the company’s demand for an item, including current and projected demand categorised by industry and product end use. Is this statement TRUE?

Q26. During the transition phase at the end of a contract, what is typically the most challenging aspect to manage?

Q27. Social security is recognized internationally as a fundamental human right. When sourcing from developing countries, procurement professionals must be mindful of the limited social support available to low-income workers, as neglecting this issue could harm their organization’s reputation. Which of the following is NOT a step toward expanding social security coverage for more people in developing countries?

Q28. The right to freedom of association and collective bargaining primarily pertains to which of the following?

Q29. During the transition period at the end of a contract, which of the following is usually the most difficult or complicated to organise?

Q30. In what circumstances is Expert Determination the most suitable method for resolving contract disputes?

Q31. One criticism of the UN Global Compact is that some organisations join without making real ethical improvements, using it for legitimacy instead. What is this known as?

Q32. Which of the following strategies is primarily designed to lower business costs while also considering social and environmental impacts?

Q33. Which of the following tools allows you to assess internal factors or drivers?

Q34. While low-cost country sourcing can provide substantial cost savings for buyers, it also comes with significant risks. Which of the following should be avoided as a potential target for low-cost country sourcing?

Q35. Which ONE of the following best exemplifies a competitive advantage?

Q36. The World Fair Trade Organization (WFTO) aims to help large global businesses expand into new markets, offering better products and fairer prices for consumers. Is this statement accurate?

Q37. A company dedicated to sustainable procurement is evaluating its processes to integrate Fair Trade goods. At which stage of the procurement process can Fair Trade requirements be most strategically incorporated?

Q38. 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?

Q39. What is the purpose of an IPO (International Procurement Organisation)?

Q40. Which framework is designed to promote ethical labor practices and social responsibility in global supply chains, addressing issues such as worker rights, health and safety, and fair wages?

Q41. SA8000 measures an organisation’s social accountability. Which of the following is a disadvantage of this standard?

Q42. Which of the following are tools that a company can use to improve ethics and sustainability across the supply chain? Select THREE

Q43. Which of the following are benefits to sustainable business practices? Select TWO

Q44. Freedom Incorporated, a UK company, buys vehicles from South Kore
a. Which of the following are included in Total Landing Costs? Select THREE

Q45. ABC Group, the country’s largest textile company, is considering partnering with a Fair Trade-certified supplier to support sustainability and ethical practices. However, they are concerned about potential challenges in working with a Fair Trade organization. Which TWO of the following challenges might ABC Group face in this partnership?