This page was exported from Free Exams Dumps Materials [ http://exams.dumpsmaterials.com ] Export date:Sat Nov 23 21:11:39 2024 / +0000 GMT ___________________________________________________ Title: 100% Pass Guaranteed Accurate L5M2 Answers 365 Days Free Updates [Q26-Q45] --------------------------------------------------- 100% Pass Guaranteed Accurate L5M2 Answers 365 Days Free Updates L5M2 DUMPS Q&As with Explanations Verified & Correct Answers Q26. SA 8000 is an alternative to which ISO?  9001  27000  310000  20400 ExplanationSA8000 is Social Accountability, this is an alternative to ISO 20400 which is Sustainable Procurement. This is explained on p.53 of the study guide. ISOs are a popular exam topic, so ensure you know these four mentioned here before the examQ27. Which of the following will you put into box 8?  new technology  forward contract  outsource  insurance ExplanationTable Description automatically generatedA forward contract would fix the exchange rate at a certain level, allowing for cost certainty. This mitigates the risk of the currency getting any weaker.Q28. Which of the following statements is true about ISO9001? Select TWO.  it is based on the principle of continuous improvement  it encourages businesses to see quality from the viewpoint of the customer  it aims to ensure sustainability within the supply chain  It complements ISO 20400  it helps businesses to identify areas of potential risk and mitigate these accordingly ExplanationISO 9001 is Quality Management- answers 1 and 2 are correct. ISOs are a popular topic on this exam so be sure to revise them – and not only what the names of them are, but also the principles behind each ISO. ISO9001 is discussed on p. 25 of the CIPS study guide.Q29. Khalid is a procurement manager who works at a manufacturing organisation based in the UK. The organisation creates building fabric materials by converting raw materials such as steal into useable items in the construction industry. Khalid sources most of his steal internationally due to competitive prices. On one occasion with his usual supplier, the ship that is carrying the materials sinks due to an unexpected storm.Which clause would be activated within the contract?  force majeure  liability clause  transportation clause  breach of contract Explanationthis is an example of force majeure. Force majeure is a popular exam topic and comes up in chapter 2.1 p. 66.A force majeure is when an event, such as a storm, happens which affects the delivery of the contract, but over which neither party has any control.Q30. Which of the following will you put into box 6?  strategic  intellectual property  environment  operational ExplanationThe correct answers are as follows:Table Description automatically generatedQ31. The UK Companies (Miscellaneous Reporting) Regulations 2018 states that organisations with more than 250 employees must do what?  Publish an Anti-Slavery Policy  Provide an annual financial statement  Demonstrate how they abide by Environmental practices  Publish a summary of how directors have engaged with employees ExplanationThe correct answer is ‘publish a summary of how the directors have engaged with employees’. For more information on this piece of legislation see p. 145Q32. Which of the following is not a benefit of having a contingency plan?  competitive advantage  increased staff morale  greater resilience to force majeure events  increased profits ExplanationContingency plans won’t increase your profit, but they will do the other three things. This is from p.109-110 of the study guideQ33. Which of the following will you put into box 5?  service credits  NDA  Conformance Specification  Force Majeure ExplanationThe correct answers are as follows:Table Description automatically generatedQ34. What is the purpose of an indemnity clause within a contract?  to assign risk to each party  to ensure both parties are adequately insured if something were to go wrong  to transfer risk from one party to another  to explain what would happen in the case of a force majeure ExplanationIndemnity clauses transfer risk from one party to another. It is an arrangement whereby one party promises to compensate the other party for a trigger event. An example of an indemnity clause could be a construction firm is building a new bridge and the project is supposed to be completed by 1st June. An indemnity clause may state that should the bridge not be ready by this date, the construction firm will compensate the buyer by X amount. See p.61 for more information on indemnity.Q35. The CBCI and DBCI are professional qualifications in which area?  supply chain management  ethical business practices  environmental improvements  business continuity ExplanationThese are qualifications in business continuity. This comes from p.107 of the study guide. CBCI stands for Certificate of the Business Continuity Institute and DBCI Diploma of the Business Continuity Institute. Once you know what the acronyms stand for, the question is quite easy!Q36. Neruda Incorporated is evaluating potential suppliers’ financial standings as part of a tender. Which of the following companies is the most financially stable?  Company A has a high gearing ratio, high liquidity and few fixed assets  Company B has low liquidity, a high gearing ratio and increasing sales trends  Company C has low liquidity, low gearing and increasing sales trend  Company D has high liquidity, low gearing and lots of fixed assets ExplanationCompany D is the strongest. You want a company with high liquidity (this means they can easily pay any debts) and low gearing (meaning that their company isn’t financed by debt). This question comes from p.24 of the CIPS study guide. It doesn’t go into a lot of detail on financial ratios and gearing, as this was covered in Level 4. If you’re rusty on financial ratios and gearing I recommend revising these before the exam.Q37. What is the job of an underwriter?  to assist a buyer in selecting the correct insurance  to advise required insurance levels for a contract  to evaluate insurance applications  to determine the validity of an insurance claim ExplanationAn underwriter evaluates insurance applications. Learn the difference between Insurance Underwriters and Claims Adjusters for the exam – this is a known topic. (A claims adjuster determines the validity of an insurance claim).Q38. Envy Manufacturing has several factories located in countries with poor reputations for human rights. It is concerned about potential risks of child labour being used within the supply chain. Envy Manufacturing has therefore decided to enlist the support of a third party auditing company to audit its factories. How should these audits be conducted? Select TWO  organised well in advance to allow the factory managers to prepare for the audit  conduct on the spot visits with no warning  conduct group interviews with workers to ensure that all voices are heard  conduct private meetings with a selection of workers Explanation2 and 4 are correct. Audits should be unscheduled so that any issues can’t be covered up in advance. Interviews with workers should also be conducted in private as this will allow them to speak their mind with confidence.Where interviews are conducted as a group there may be peer-pressure to say the correct thing. especially if there are managers around. see p.88 for information on AuditsQ39. In an organisation, who is responsible for creating a risk assessment register?  the CEO  Procurement Manager  Risk Manager / H+S Manager  Cross-Functional Team ExplanationA Cross Functional Team should create a risk register. It shouldn’t be the responsibility of one person to do this- more points of view will lead to more risks being identified. Accountability for the Risk Register may however sit with the CEO or a Department Manager. This is explained on p. 132Q40. Company X is a large company which is traded on the UK stock exchange. According to the Companies (Miscellaneous Reporting) Regulations 2018- is it obligatory for Company X to follow a Corporate Governance Code?  yes- all companies in the UK must follow this  yes- all companies trading on the stock exchange must do this  no- corporate governance codes are not mandatory  no- but if it doesn’t follow a Corporate Governance Code it must explain the reasons why not ExplanationThe correct answer is 4 – the policy is ‘comply or explain’ – basically say which code you follow, or explain (publicly) why you’re not following one. See p. 145 for more information on thisQ41. ISO 31000 is built on 11 guiding principles. Identify THREE of these.  Risk management can create value  Risk Management should take into account company culture  Risk Management should address uncertainty faced by the organisation  Risk Management should be done annually  Risk Management should include only the Departments affected by risk ExplanationThe first three sentences are true about ISO 31000. The list of the 11 principles are from p. 140. ISO 3100 is a known exam topic.Q42. Chloe is a procurement manager at Ruby Company. She has been asked to join a cross-functional team to review the company’s risk appetite, potential risks within the supply chain and brainstorm mitigating actions.Chloe has suggested that the cross-functional team should first draw up a list of potential supply chain risks and potential strategies to overcome the risks. Is Chloe correct?  yes- the first thing the team should look at are the risks and categorise these by topic  yes- the team should focus on creating a risk register and strategies for mitigating risks as quickly as possible  no- the team should review the company’s risk appetite before creating a risk register  no- Chloe should first speak with suppliers before drawing up the list of potential supply chain risks ExplanationThe correct answer is 3 ‘no- the team should review the company’s risk appetite before creating a risk register’.This questions tests to see if you understand what risk appetite is and when this should be reviewed. Risk appetite is the first stage in developing any plan as it will influence the next stages. For example if the company has a large risk appetite, this would affect how they would classify risks and what mitigating actions they would take. Risk appetite is explained in chapter 1.1 (p.4) but it also comes up in Learning Outcome 3Q43. Fraud committed by an employee within a business is what type of risk?  internal risk  external risk  procurement risk  economic risk ExplanationThis is an internal risk. A procurement risk would be issues with a supplier or contract, and economic risk would be exchange rate fluctuations etc. See p.118 for more information on internal risks- it’s a known exam topicQ44. Which of the following will you put into box 5?  new technology(Correct)  forward contract  outsource  insurance ExplanationNew technology (ie a new web portal or payment mechanism) would help treat this risk.Q45. Which of these is a type of Intellectual Property protection? Select TWO  Warranty  Condition  Patent  Trademark ExplanationPatent and Trademark are types of IP protection. There are 4 in total – the other two are copywrite and trade secret. This is covered on p.63-64 of the study guide Loading … L5M2 dumps Exam Material with 117 Questions: https://www.dumpsmaterials.com/L5M2-real-torrent.html --------------------------------------------------- Images: https://exams.dumpsmaterials.com/wp-content/plugins/watu/loading.gif https://exams.dumpsmaterials.com/wp-content/plugins/watu/loading.gif --------------------------------------------------- --------------------------------------------------- Post date: 2023-06-01 10:13:53 Post date GMT: 2023-06-01 10:13:53 Post modified date: 2023-06-01 10:13:53 Post modified date GMT: 2023-06-01 10:13:53