Free Ethical and Responsible Sourcing Exam L4M4 Exam Practice Test

Bribery is considered an unethical business practice. What constitutes a bribe?

• anything that is of value to the recipient
• something that has monetary value
• something of significant monetary value
• anything that can be traded illegally

Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?

• capacity, capability and pricing structure
• pricing structure, ethics and financial stability
• financial stability, capacity and capability
• capability, culture and pricing schedules

Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

• phishing
• verbal contracts
• golden handshake
• facilitation payment

A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?

• details who is responsible for the insurance of the goods during transit
• specifies the country of origin of the goods
• explains which tariffs apply to the goods
• details payment instructions

In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?

• Most Economically Advantageous Tender
• Best Value for Money
• Cheapest Overall Tender
• Best Business Fit

For what type of purchase would you use a Futures Exchange?

• Tail Spend
• Capital Expenditure
• Commodity
• High value, high risk

Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass. What relationship style would be best suited?

• collaborative
• transactional
• adversarial
• non-critical

Which of the following is an advantage to the TUPE regulations?

• Continuity of supply for the buying organisation
• Value for money for the buying organisation
• Reduced overheads for the buying organisation
• Increase in buyer power

Which of the incoterms listed are suitable for transporting goods via train?

• FAS
• FOB
• CRF
• EXW

When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?

• low value items, transactional suppliers
• low value items, strategic suppliers
• high value items, strategic suppliers
• high value items, transactional suppliers