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L4M4 Exam Dumps : Ethical and Responsible Sourcing

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Ethical and Responsible Sourcing Questions and Answers

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Question 1

Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?

Options:

A.

the supplier is extremely profitable

B.

the supplier has a lot of long-term debt

C.

the supplier has a high cost of sales

D.

the supplier has a strong return on investment

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Question 2

Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

Options:

A.

The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply

B.

Financial assessments provide a holistic view of a company's capability, including quality and delivery performance

C.

A supplier who is highly profitable will be charging prices higher than the average market rate

D.

If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs

Question 3

The procurement team received an urgent request to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach?

Options:

A.

No, because international vendors must also be notified of the opportunity

B.

Yes, so that the local pest control sector can decide between them who should bid

C.

No, because they might receive too many irrelevant proposals which may delay the assessment process

D.

Yes, they must seek as many bids as possible even if it takes longer

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