100% PASS 2025 MARVELOUS CIPS L5M5 TEST ENGINE VERSION

100% Pass 2025 Marvelous CIPS L5M5 Test Engine Version

100% Pass 2025 Marvelous CIPS L5M5 Test Engine Version

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q119-Q124):

NEW QUESTION # 119
A company seeks a fair-trade certification that covers its entire business operations instead of just individual products. Which organization offers certification for the entire organization rather than a single product?

  • A. Fair Trade Federation
  • B. Fair Trade USA
  • C. Fairtrade International
  • D. Fair for Life

Answer: A

Explanation:
Choice D- Fair Trade Federation is the correct answer! It is a membership-based organization that evaluates and certifies entire businesses that are committed to fair trade principles across all their operations, not just specific products.
Choice A - Fair Trade USA - Certifies individual products, not entire businesses. It allows companies to label specific items as "Fair Trade Certified" rather than certifying the company as a whole.
Choice B - Fair for Life - While it offers certification for supply chains and business practices, it primarily focuses on product certification rather than certifying an entire organization.
Choice C - Fairtrade International - Like Fair Trade USA, it certifies specific products, particularly commodities like coffee, cocoa, and bananas, rather than the entire business.
Reference:
LO-3.3; Page 300-301; Fairtrade international (FI), global fair trade organizations and their implications for procurement and supply


NEW QUESTION # 120
A supplier has contracted to deliver a customized piece of machinery to a manufacturing company under a "payment following performance" clause. After delivery, the buyer delays payment, citing the need for additional testing to verify compliance with the agreed specifications.
What is the greatest risk the supplier faces under this "payment following performance" system in this scenario?

  • A. The supplier might receive full payment before addressing the buyer's concerns
  • B. The supplier might fail to deliver on time and face penalties
  • C. The buyer might demand additional goods or services at no extra cost
  • D. The buyer might reject the machinery without valid reasons

Answer: D

Explanation:
Choice A- Under a "payment following performance" system, the supplier bears the risk of non-payment or delays if the buyer disputes the performance, even without valid reasons.
Incorrect answer:
Choice B- Payment before addressing concerns contradicts the "payment following performance" system.
Choice C- Demanding additional goods or services is not directly tied to the payment terms.
Choice D- Delivery timing issues relate to performance obligations, not payment risk.
Reference:
LO-2.2; Page 189; Monitoring Contract Performance


NEW QUESTION # 121
Which of the following is NOT a reason for supply chain mapping?

  • A. Identifying potential risks and vulnerabilities
  • B. Gathering quality data through audits
  • C. Eliminating the need for supplier relationship management
  • D. Understanding and gaining insights into suppliers

Answer: C

Explanation:
Supply chain mapping aims to identify risks, improve visibility, and ensure compliance, among other benefits. However, it does not eliminate the need for managing supplier relationships; in fact, it often enhances the ability to manage those relationships effectively.
Reference:
LO-2.1; Page 155; Mapping supply chains to achieve supply chain transparency


NEW QUESTION # 122
Which of the following scenarios best illustrate instances of bribery?

  • A. A buying organization excludes certain bidders from a high-value tender on the basis that these bidders have not detailed what environmental protection measures they would take
  • B. A supplier has just sent the procurement official her invoice for approval. Included in her expenses is a large round sum figure for 'client entertainment' without any price breakdown
  • C. Upon landing at Dhaka Airport, the customs official informs that a 'standard processing fee' of $20 is required to allow entry into the country upon which a receipt for payment will be given
  • D. During the audit of a luxury goods distributor, the auditor was asked to take a pen home as a gift. After checking organizational policy, the auditor accepted the gift

Answer: B

Explanation:
Choice B- 'Commercial organisations' commit an offence if they, or any person associated with them, bribes another person intending to obtain or retain business or a business advantage. The purpose of the expenditure is key, not necessarily the amount or what is being purchased. The extent to which the expenditure is incidental is also a factor. An itemised invoice providing a breakdown of the expense will be useful, along with further enquiries of the supplier. As there is no price breakdown, it is a valid reason to suspect the expense and is a form of bribe.
Incorrect answer:
Choice A- It is an offence to bribe another person or to be bribed. As per Bribery Act 2010, failing to prevent a bribe being paid to obtain or retain business or a business advantage is an offence. In this situation, the policy regarding acceptance of gifts was ahered to and is not bribery.
Choice C- Bribing a foreign official is an offence under the Bribery Act 2010. It is important to determine whether the fee is genuine or not; it should be accompanied with official notices and a receipt for payment. As the official informs it is a "standard processing fee" with documentary eveidence like a money receipt, it is not a case of bribery.
Choice D- As the requirement for the buying organisation was to detail environtmetal protection measures for a tender, the buying organisation has the right to reject bidders on this basis. This is not a form of bribery in any way.
Reference:
LO-1.1; Page 47-48; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements


NEW QUESTION # 123
Ms. Nabila plans to create a CSR plan by involving all internal and external stakeholders of the company. Which TWO key components should she prioritize for the CSR plan?

  • A. Introduction
  • B. Financial Analysis
  • C. Philanthropic responsibility
  • D. Refinement
  • E. CSR Strategy

Answer: D,E

Explanation:
Key components of a CSR plan
* CSR assessment
* CSR strategy
* CSR commitment to stakeholder engagement
* Implementation plan and activities
* Verification and evaluation of results
* Refinement
Reference:
LO-1.1; Page 8; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains


NEW QUESTION # 124
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