7/7/22, 11:14 AM
L5M5 Mock Test
L5M5 Mock Test
Total points 43/60
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1. Martha is the procurement manager of an organization. She instructed 1/1
her junior officer to identify the stakeholders according to their types. John,
who made the report look like this:
Investors should be in internal stakeholders’ column
Shareholders should be in connected External stakeholders’ column
Financial Institute should be in internal stakeholders’ column
None of the above
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2. Freedom Incorporation is a company based in the UK and have bought a 1/1
new fleet of vehicles from South Korea. Which of the following would be
included in the 'Total Landed Costs' of this purchase? Select THREE.
cost of motor insurance
Transportation cost
currency conversion costs
disposal costs
import duties
Recycling cost
3. Santino is a procurement manager at ABC Ltd. He manages a contract 1/1
with a supplier. The relationship is characterized by both companies
seeking advantages at the expense of the other. What type of relationships
does Santino have with his supplier?
partnership
Outsorcing
closer tactical
Adversarial
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4. Which of the following is the correct order of the Deming cycle?
1/1
plan, do, act, check
check, plan, do, act
plan, do, check, act
plan , act, check, do
5. Nicolas is the Head of Procurement at Penny Dolittle Manufacturing
Company. He is introducing a sustainability agenda to the company's
procurement strategy. Nicolas believes that an advantage of doing this is
that it will drive innovation. Is he correct?
1/1
yes - reporting on sustainability can drive change and innovation
yes- reporting on sustainability is mandatory so it always leads to innovation
no- reporting on sustainability will lead to an increased reputation
no- reporting on sustainability will increase costs
6. Which of the following is not considered to be an alternative form of
dispute resolution?
1/1
mediation
adjudication
conciliation
litigation
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7. World Fair trade Organization (WFTO) has set ten principles that all
fairtrade organizations must adhere to. Which of the following are the
1/1
principles that has been set by WFTO?
1. Good Working Condition ; 2.Respect for the environment ; 3.
Freedom of association ;
4. Employment
1 & 2 only
2 & 3 only
3 & 4 only
1 & 4 only
8. A charter for Fair trade principle was created jointly by WFTO and
1/1
Fairtrade international. What are the ways that an product can come to be
labelled as 'Fair Trade' by this charter? Select TWO.
manufacturer route
product certification route
audit route
integrated supply chain route
Capacity Building route
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9. A claim of discrimination has been filed against ABC Ltd, a retailer based 0/1
in the UK. The Claimant believes they suffered discrimination based on the
colour of their skin and religion. What is the maximum limit on the award
for compensation if the claim is successful?
£10,000
£83,682
£100,000
no limit
Correct answer
£100,000
10. The tree of due diligence was created by the London Universities
1/1
Purchasing consortium , The University of Greenwich and CIPS. Which are
the key base requirements that are situated at the root of the tree of due
diligence?
Commitment;
1. Monitoring;
2. Organizational
3. Supplier engagement;
4.
Risk assessment and prioritization
1 & 2 only
2 & 3 only
3 & 4 only
None of the above
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11. Contracts are composed of different types of clauses. In a contract
1/1
what is the name given to a clause that if breached, can result in the injured
party claiming damages but does not lead to termination of a contract?
condition
warranty
representation
innominate term
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12. Which is the driver of globalization for company-1
0/1
Market driver
Poltical Drivers
Technological drivers
Cost Drivers
Correct answer
Technological drivers
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13.Which is the driver of globalization for company-2
0/1
Market driver
Poltical Drivers
Technological drivers
Cost Drivers
Correct answer
Market driver
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14. Which is the driver of globalization for company-3
1/1
Market driver
Poltical Drivers
Technological drivers
Cost Drivers
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15. Which is the driver of globalization for company-4
1/1
Market driver
Poltical Drivers
Technological drivers
Cost Drivers
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16. Which will be the challenges in globalization for company-1
1/1
Health and Safety Issues
Cultural issues
Operational issues
Ethical issues
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17. Which will be the challenges in globalization for company-2
1/1
Health and Safety Issues
Cultural issues
Operational issues
Ethical issues
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18. Which will be the challenges in globalization for company-3
1/1
Health and Safety Issues
Cultural issues
Operational issues
Ethical issues
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19. Which will be the challenges in globalization for company-4
1/1
Health and Safety Issues
Cultural issues
Operational issues
Ethical issues
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20. There may be potential conflicts which may arise because of differing 0/1
priorities of different stakeholders. Which two of the following priorities
would typically be seen as being in conflict with some stakeholders’
priorities of profit maximisation?
Value for money
Workers’ rights
Low-cost labour
Cost reduction
Environmental responsibility
Correct answer
Workers’ rights
Environmental responsibility
21. In a commercial contract in which payment system the risk of supplier 1/1
is higher than buyer?
Payment in advance
Letter of credit
Payment following performance
payment at starting to deliver the objects of procurement
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22. Expert Determination is a form of contract dispute resolution which is 1/1
best suited to what circumstances?
high value contracts
international contracts
technical disputes
personality disputes
23. Sourav is a Procurement Manager at Long Legs PLC. He is in charge of 1/1
a contract with a supplier of raw materials. He has noticed that the supplier
has issues with conformance to the CSR Policy. Sourav has met with the
supplier to address the issue but has not yet seen an improvement. What
should Sourav do?
terminate the contract
issue an ultimatum
escalate the issue to a senior manager
Make a financial claim
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24. A point in a supply chain where problems may arise and have an affect 1/1
on a business's cost is commonly referred to as what?
liability point
cost point
touch point
price point
25. During the transition period at the end of a contract, which of the
following is usually the most difficult or complicated to organize?
1/1
returning of physical assets
drawing up an exit strategy
document transfer
knowledge transfer and IP rights
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26. Which of the following statements is TRUE about the adjudication form 0/1
of dispute resolution? Select TWO
it is more formal process than litigation
it is quicker than going through the courts
a decision must be made within 28 days
It is a non confidential process
Costly process than litigation
Correct answer
it is quicker than going through the courts
a decision must be made within 28 days
27. Thinking of the UK's equalities legislation as being at the forefront of
modern thinking, which of the following are not the protected
characteristics are addressed by the UK’s Equality Act, 2010?
0/1
Sexual orientation
Religion
Age
Race
Human Rights
Correct answer
Human Rights
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28. What is the market condition called for case-01
1/1
Perfect competion
Oligopoly
Monopoly/ Monopsony
Oligospony
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29. What is the market condition called for case-02
1/1
Perfect competion
Oligopoly
Monopoly/Monopsony
Oligospony
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30. What is the market condition called for case-03
1/1
Perfect competion
Oligopoly
Monopoly/ Monopsony
Oligospony
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31. What is the market condition called for case-04
1/1
Perfect competion
Oligopoly
Monopoly/ Monopsony
Oligospony
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32. What is the position of buyer and supplier according to
power/dominance model for case-01
1/1
Buyer and supplier are independent
Supplier is dominant over buyer
Buyer and supplier are interdependent
Buyer is dominant over supplier
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33. What is the position of buyer and supplier according to
1/1
power/dominance model for case-02
Buyer and supplier are independent
Supplier is dominant over buyer
Buyer and supplier are interdependent
Buyer is dominant over supplier
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34. What is the position of buyer and supplier according to
1/1
power/dominance model for case-03
Buyer and supplier are independent
Supplier is dominant over buyer
Buyer and supplier are interdependent
Buyer is dominant over supplier
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35.What is the position of buyer and supplier according to
power/dominance model for case-04
1/1
Buyer and supplier are independent
Supplier is dominant over buyer
Buyer and supplier are interdependent
Buyer is dominant over supplier
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36. Ruby is a Contracts Manager at ACE Ltd and manages a contract with 1/1
Spades Ltd which provides raw materials to ACE. She has found a serious
issue in Spade's contract. Which TWO process should Ruby complete?
KPIs and Root Cause Analysis
Root Cause Analysis and Corrective Action Plan
Corrective Action Plan and SWOT Analysis
SWOT Analysis and KPIs
37. Which of the following is not a core Labor Standard of the ILO?
1/1
Paid vacation time and paid sick leave
Freedom of association
Payment of a living wage
Abolition of child labour
38. A letter of intent also known as a memorandum of understanding is a
legally binding contractual terms in a commercial contract. Is this
1/1
statement true?
Yes. Because a letter of intent is used for every contract as a contractual term.
No, because a letter of intent is document used during negotiation but not a
term of contract always.
Yes. Because a letter of intent is a legally binding contractual terms as a condition
of contract.
No. Because a letter of intent is used for contract management part only.
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39. Which three of the following are notable potential downside risks of
global sourcing? Select Three
0/1
Cost reduction
Communication technology
Risk of ensuring quality
Risk of disruption in transportation
Containerisation of cargo
Exchange rate Risk.
Correct answer
Risk of ensuring quality
Risk of disruption in transportation
Exchange rate Risk.
40. Charlie is 13 years old and sometimes helps his parents in the corner
shop that they run. He helps out stocking shelves at weekends. Charlie
1/1
attends school and completes his homework during weekdays. Is this an
example of Child Labour?
yes- any work done by a person under the age of 16 is considered child labour
yes- Charlie should report his parents to the police
no- Charlie is old enough to not be considered a child
no- Child Labour doesn't apply to helping a family business
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41. Demand forecasting collect the data about the company's supply
0/1
capacity for an item, including current and projected supply categorized by
industry and product end use. Is this statement TRUE?
yes- it gathers information about supply and demand
no- demand forecasting investigates the company’s demand for an item including
current and projected demand.
yes- it is used for manufacturing companies within the supply chain
no- supply forecasting provides a prediction of short- and long-term prices and
trends
Correct answer
no- demand forecasting investigates the company’s demand for an item including
current and projected demand.
42. The WTO (World Trade Organisation) has several functions. Which of
0/1
the following is not a function of the WTO?
set trade rules between countries
deal with trade disputes between countries
to strive for full employment and raise living standards
to ensure a high level of labor standards
Correct answer
to ensure a high level of labor standards
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43. According to ILO worst forms of child labor convention following are
0/1
the worst forms of child labor except-
Sexual Exploitation
Drug trafficking
Any form of slavery, including being forced to fight in armed conflicts
Child can do less work than Adult so Giving Low wages
Correct answer
Child can do less work than Adult so Giving Low wages
44. In 1999 the UN launched the Global Compact which is a principled
based framework to implement sustainable business practices. Which of
0/1
the following areas is covered by the Global Compact? Select THREE
human rights
environment
anti-corruption
racism
minimum wage
Correct answer
human rights
environment
anti-corruption
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45. Once a member of WIETA wants to use a WIETA seal for branding, that 1/1
member must obey the WIETA principles. Is it True?
Yes, Because WIETA has a specific enforcing role.
No, Because anyone can use the WIETA seal.
Yes , Because Who wants to use WIETA seal He has to sign a legally binding
contract
No, Because No one can Use the WIETA seal for branding.
46. Which of the following scenarios would be examples of bribery?
1/1
A supplier offers to take a professional buyer to Qatar for watching World cup
football match, if the buyer will award a contract which is currently up for
renewal, to that supplier
A senior manager requests a young intern to visit the senior manager’s home ‘for
some career advice’
A local customs official receives a diary with a company logo
A buying organisation excludes certain bidders from a high-value tender on the
basis that these bidders have not detailed what environmental protection measures
they would take
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47. Porter's 'Creating Shared Value' incorporates CSR (Corporate Social
1/1
Responsibility) with what other action?
marketing
philanthropy
philosophy
economics
48. Which of the following is an example of a closed-loop supply chain?
1/1
a clothing retailer donates 5% of the profits back to the suppliers
customers return packaging back to the shop
a food manufacturer is certified as fair trade
a supply chain has integrated technology to apply more accurate demand forecasts
49. A leading coffee retailer has begun an initiative in which it advocates 1/1
buying raw materials such as coffee beans from farmers rather than using
an intermediary such as an exporter. In doing so it is using a partnering
approach and helping to invest in the local area. What is this practice
known as?
Fair Trade
Direct Trade
World Trade
Trade Initiative
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50. The practice of making statements, usually for marketing purpose that 1/1
make an organization appear more environmentally friendly than it actually
is. This statement is expressed by a terminology. What terminology is this?
Blue Washing
Green Washing
Yellow Washing
Bullwhip effect
51. In what way do Fair Trade Organisations protect producers of raw
0/1
materials from poor economic conditions?
a standard for working conditions is set
final products are marketed as fair trade
money is provided to communal funds to help invest in the local area
a minimum price is set for the purchase of items
Correct answer
a minimum price is set for the purchase of items
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52. Sandra is the CEO of a manufacturing firm and is keen to introduce a
CSR Policy, something which her company has not had previously. In a
1/1
board meeting where the idea was discussed it was mentioned that
employees may be resistant to a CSR Policy. What would be the most likely
reason for the resistance?
CSR Policies could signify reduced profits for the company
This may signify changes in the way the business operate
Lower stakeholder returns
Negative Publicity
53. Opportunities for disadvantaged producers and the payment of a local 0/1
living wage are principles of which organisation?
The World Fair Trade Organisation
The International Labour Organisation
The Organisation for Economic Co-operation and Development
The European Union
Correct answer
The World Fair Trade Organisation
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54. Roogy Ltd is a small business located in the UK. It is considering
implementing its own environmental standard rather than a globally
0/1
recognised one. What would be the advantage of this?
it will be more easily understood by customers
it will be cheaper than other industry standard
it ensures compliance with International Standard
this is a form of greenwashing
Correct answer
it will be cheaper than other industry standard
55. A procurement team have run a tender to buy new office furniture. They 1/1
have signified that cost is the most important factor of the purchase. What
is the main risk of this?
not receiving any bids
receiving too many bids
suppliers may sacrifice sustainability agenda
rushed tender process
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56. Maher has asked to research the risks associated with adopting
1/1
sustainable procurement practices. Which of the following is a risk to
consider?
Increased attractiveness to potential employees and investors
May Increased product cost
Increased productivity and reduced waste
Reputational damage.
57. A certification, which allows organizations who are not able to
purchase all their ingredients via fairtrade route to commit to sourcing a
0/1
certain percentage of cocoa, sugar through fairtrade. Which certification is
this?
World Fair Trade Organization
Fairtrade Labelling Organizations International (FLO)
Fair Trade Federation
Fairtrade Sourcing Program
Correct answer
Fairtrade Sourcing Program
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L5M5 Mock Test
58. The Global Compact Principles of the UN are legally binding for the
0/1
member states who have signed up. Is this TRUE?
yes- reports must be filed regularly on process
yes- it is voluntary to join, but it is legally binding once signed up
no- it is voluntary to join and not legally binding
no- it is not legally binding and there is no requirement to publish any progress
reports
Correct answer
no- it is voluntary to join and not legally binding
59. Mallik is a procurement manager for a food processing factory. Mallik 1/1
wants to establish a sustainable supply chain. He decided to involve his
workers in raising sustainability awareness. Is this a right strategy?
Yes. Because Employees have the right to association and CBA.
No. Because, in raising sustainability awareness employees has nothing to do.
Yes. Because, Employees are the best promoters and they feel valued if they
involved.
No. Because, for implementing sustainability, no need to raise awareness.
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L5M5 Mock Test
60. Which of the following are Performance objectives of operation? 1.
Quality
Market
2. Technology
3. Dependability
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4.
1 & 2 Only
2& 3 Only
1 &3 Only
2 &4 Only
Correct answer
1 &3 Only
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