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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing
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CIPS Ethical and Responsible Sourcing Sample Questions:
The balance sheet (statement of financial position) is one of the financial statements used in assessing a supplier's financial stability. The balance sheet contains information on such items as ...
- A. Liquidity ratios, return on capital employed and gearing
- B. Cash receipts from customers
- C. Short-term liabilities (e.g., unpaid taxes and bank overdraft)
- D. Operating expenses and net profit
Correct Answer: C 🗳️
Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).
Which financial statement would be used for analysing an organisation's assets?
- A. Credit rating reports
- B. Balance sheet (statement of financial position)
- C. Cash flow statement
- D. Profit and loss account (statement of financial performance)
Correct Answer: B 🗳️
Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).
Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?
- A. balance sheet
- B. profit and loss account
- C. cash flow statement
- D. ESG policy
Correct Answer: C 🗳️
Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).
Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
Review the insurance clauses in the contract
Check that the supplier's internal policies are up to date
Check the supplier's conflict of interest register for their contract
Review the non-disclosure agreement for their contract
- A. 2 and 3 only
- B. 2 and 4 only
- C. 1 and 3 only
- D. 1 and 4 only
Correct Answer: A 🗳️
Explanation: Only visible for PassLeader members. You can sign-up / login (it's free).
Why would you use a credit score to appraise a supplier?
- A. to understand the level of risk the supplier poses to your organisation
- B. to find out how much money the supplier has in the bank
- C. to find out if the supplier has any unethical business practices
- D. to understand if their prices reflect market value
Correct Answer: A 🗳️
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