Test Online Free CIPS L5M5 Exam Questions and Answers
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The use of child labour can affect which parties in the supply chain? Select TWO
Answer: Explanation:
Child labour is often found in production (e.g. agriculture or mining of raw materials) and in manufacturing (e.g. sweatshops). See p.17
Question 17Selectable Answer
Santino is a procurement manager at ABC Ltd. He manages a contract with a supplier. The relationship is characterised by both companies seeking advantages at the expense of the other.
What type of relationships does Santino have with his supplier?
Answer: Explanation:
This is an adversarial relationship. The Relationship spectrum comes up in this module on p.107 but it's exactly the same as what you saw at Level 4.
Question 18Selectable Answer
SA8000 measures an organisation's social accountability.
Which of the following is a disadvantage to this?
Answer: Explanation:
3 is the correct response. It requires a management system to be in place- this is because the system produces ongoing reports. SA8000 is not industry specific and is a global standard. P.195
Question 19Selectable Answer
Under the Equalities Act 2010 which of the following is not a protected characteristic?
Answer: Explanation:
Weight is not a protected characteristic. The other three are. Others include; race, sex, sexual orientation, sexual reassignment, marriage status, race and religion/ belief
Question 20Selectable Answer
What is the purpose of an IPO (International Procurement Organisation)?
Answer: Explanation:
An IPO identifies the most cost effective manufacturers across the world and sends this information to buyers who are looking to reduce their costs. This is from p.41 of the study guide. Even if you don't know what an IPO is you can guess that the answer isn't 3- because a Procurement Organisation isn't the same as a Transport Logistics Organisation. Out of the other options number 2 sounds the most likely
Question 21Selectable Answer
the WTO (World Trade Organisation) has several functions.
Which of the following is not a function of the WTO?
Answer: Explanation:
The WTO doesn't deal with labour standards. It does not include labour standards in its guidelines. Labour Standards is dealt with by the ILO. P.186
Question 22Selectable Answer
Which of the following statements about the ILO (International Labour Organisation) is incorrect?
Answer: Explanation:
1 is incorrect- it's a body of the UN. All other statements are correct- these are from p.183-185. There's a lot in the study guide on the ILO.
Question 23Selectable Answer
Which of the following could be considered a competitive advantage for a company?
Answer: Explanation:
Reduced Lead Times is a form of Competitive Advantage. Competitive Advantage is something one company does well that would make a customer choose it (something it does that other don't). The study guide actually points out that profit margins, return on investment and reputation are NOT forms of competitive advantage on p.38
Question 24Selectable Answer
Which of the following form the 'Triple Bottom Line'? Select THREE
Answer: Explanation:
People, Planet and Profit are the 'triple bottom line' - see p.3 of the study guide. This is also known as the 3Ps
Question 25Selectable Answer
During the transition period at the end of a contract, which of the following is usually the most difficult or complicated to organise?
Answer: Explanation:
Knowledge transfer and IP rights (Intellectual Property) is often the most difficult aspect of ending a contractual relationship. It's necessary to identify which party is the owner of each, and this can often be difficult to agree on. P.172
Question 26Selectable Answer
Banks, Investors and Consumers form which type of stakeholder?
Answer: Explanation:
These are connected external stakeholders. They have direct contractual or commercial dealings with a company. Internal stakeholders are inside the business (e.g. employees) and external are outside the business (e.g. local community).
Question 27Selectable Answer
Which of the following are principles of the Wine and Agricultural Ethical Trade Association (WIETA)? Select THREE
Answer: Explanation:
1 2 and 3 are correct. WIETA comes up on p.192 of the study guide. This isn't an organisation I'm familiar with but I did google it and it's a real organisation in South Africa. CIPS aren't going to expect you to know the 9 principles of the WIETA but you should be able to guess what they are, as they're pretty much the same as the ILO, ETI and other similar ethical associations. Option 4 is incorrect because no workplace is ever going to be free from risk.
Option 5 is incorrect because sick pay is decided at government level in each country rather than by ethical organisations.
Question 28Selectable Answer
Which organisation is responsible for the creation of the 2030 Sustainable Development Agenda?
Answer: Explanation:
This is the UN. There are 17 sustainability goals and these are listed on p.3. For the exam it's a good idea to familiarise yourself with them, but there's no need to learn them all off-by-heart.
Question 29Selectable Answer
Supply Chain Operations Reference (SCOR) is model of supply chain mapping used by many procurement professionals.
Which of the following are advantages of SCOR? Select TWO
Answer: Explanation:
1 and 3 are correct. Option 2 is incorrect- the downside to SCOR is it doesn't relate to external factors. See p.104 for more details on SCOR and other types of supply chain mapping
Question 30Selectable Answer
An international trade dispute would be resolved by which organisation?
Answer: Explanation:
The WTO can facilitate the settling of trade disputes. It's the body to which governments go in order to negotiate trade deals and resolve trade problems. P.58
