CIPS Managing Ethical Procurement and Supply (L5M5) Practice Test

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• What is the term for the order quantity that minimizes total holding and ordering costs?
• What could safety stock also be referred to as?
• What is the purpose of 'tendering' in procurement?
• What does VSM stand for in a business context?
• What does total cost encompass in procurement practice?
• In the context of slavery, what does 'debt bondage' typically entail?
• Which of the following concepts is aimed at minimizing negative impacts while maximizing benefits for society and the environment?
• What distinguishes a niche market?
• What does turnover measure in a business?
• What is a blog?
• What differentiates the formal sector from the informal sector in terms of employment?
• Which of the following best describes the goal of SRM?
• What is the term for the nation where workers are situated, such as where a factory or office operates?
• What is the main role of standards-developing organisations?
• What does market capitalisation refer to?
• Which term describes economic implications of governmental financial activities?
• What is the definition of a subsidiary company?
• What is a 'tariff' in the context of international trade?
• What aspect of the triple bottom line focuses on social responsibility?
• What is the term for slavery where children inherit the status of their enslaved parents?
• What is capital in a business sense?
• What is the name of the payment in the UK for those unable to work due to illness or disability?
• What is meant by differentiating a business's products or services?
• What does the term 'jurisdiction' relate to?
• Who are stakeholders in a business context?
• What term refers to the economic system where workers are self-employed and work without formal contracts?
• What is an oligopoly?
• Which of the following is not a focus of disaster recovery planning?
• What name is given to the sum of all costs associated with the alternative options of delivering a service throughout its lifecycle?
• What characterizes qualitative data in procurement?
• What is the primary focus of Supplier Relationship Management (SRM)?
• What does it mean when terms are defined as 'express' in a contract?
• What type of terms are specifically stated within a contract and agreed upon by both parties?
• Which of the following best describes the triple bottom line?
• When a business achieves a reduction in production costs through large-scale production, this is known as what?
• What do the BRICS countries represent?
• What is the purpose of fair trade?
• Which program is designed to gather information on suppliers throughout the supply chain?
• What does GDP stand for in economic terms?
• What is a common use of value chain analysis?
• Which type of knowledge is considered 'tacit knowledge'?
• What does the term 'supply chain' refer to?
• What term describes the exploitative employment of children in an industry?
• What does the term 'externalities' refer to?
• What does it mean for goods to be substitutable?
• What defines a multi-cultural organization?
• What is subcontracting?
• What is the main goal of ACAS?
• What is a common goal of businesses engaging in social advocacy?
• What is commonly practiced as a method to enhance a company's image without genuine environmental efforts?
• What defines a market situation where there is only one seller of a particular good or service?
• Which of the following best describes the term 'local living wage'?
• What is a crucial aspect of building rapport with suppliers?
• What is the term for the illegal trade of human beings for the purpose of exploitation?
• What describes accessing computer and software applications through a network connection?
• What are sunk costs?
• In terms of production costs, what advantage does 'economy of scale' provide?
• What document typically outlines the expected performance and monitoring metrics for a service?
• What does the term "minimum efficient scale" relate to in business?
• What are the taxes called that are imposed on goods imported from other countries?
• What describes the integration of economies across the world through procurement?
• What are costs that remain constant regardless of levels of production called?
• What is a key feature of a closed-loop supply chain?
• What does the term 'lead time' refer to?
• What role do national standards bodies play in the global context?
• Why is responsible procurement important for businesses?
• What characterizes variable costs?
• Which phenomenon describes pressure to comply with environmental standards moving down the supply chain?
• Which of the following is a key feature of the minimum wage as represented by the National Living Wage (NLW)?
• What is it called when individuals trade stocks based on non-public information about a company?
• What is portfolio analysis used for in procurement?
• What does the term 'domestic' refer to in a business context?
• Which term refers to the legal obligation or burden of responsibility for an act or decision?
• Which of the following best defines total landed costs?
• What is the primary focus of civic obligations as a concept?
• What are fiscal functions primarily concerned with?
• What term describes influencing someone, especially a lawmaker, on a particular issue?
• What is the term used for the sector of the economy that is not monitored or taxed by the government?
• What technology is generally more efficient in energy consumption compared to traditional lighting?
• Which system integrates management of core business processes in real-time using software and technology?
• Which factor is considered uncontrollable and can affect an organization's strategic decisions?
• What is the significance of market capitalisation for investors?
• What qualifies an organisation as a fair trade organisation?
• What does the term 'overservice' imply?
• What is a pandemic?
• Which term refers to the relationship in business focusing on the exchange of purchase orders and invoices without collaboration?
• What does EDI stand for in the context of business communications?
• What is a key benefit of electronic data interchange (EDI) for businesses?
• In the context of employee attrition, what is a common result for a company?
• In the context of workforce consultation, what is the goal of collective consultation?
• Which aspect is NOT a focus of value chain activities?
• What is the legal process where a dispute is taken to court called?
• What does root cause analysis aim to achieve?
• What method of dispute resolution involves an independent technical expert appointed by the parties?
• What is the term for a process where staff representatives are consulted by employers?
• Which of the following best describes the operation structure of multi-national organizations?
• What is a service level agreement (SLA)?
• What does the National Insurance (NI) scheme in the UK provide?
• What does process capability help businesses achieve?
• What is the aim of social protection policies?
• What is the term used to describe a pre-planned way of leaving a difficult situation?
• What is the term for modern slavery where individuals must work to repay a debt with no hope of freedom?
• What is it called when there is only one buyer of a particular good or service?
• Which political viewpoint is associated with a focus on socialism and equitable distribution of wealth?
• What term refers to legal responsibility for an activity or decision that breaks the law?
• What is the term for the process of using past data to predict future demand?
• What does the value stream mapping tool primarily analyze?
• How does a company typically measure the success of its procurement strategy?
• What is a primary characteristic of trade unions?
• What describes the part of the economy that is taxed and monitored by the government?
• Which of the following best outlines the purpose of community benefit clauses?
• Which term describes a business operated from one's home?
• What does attrition refer to in a business context?
• Which concept involves considering environmental and ethical impacts in purchasing?
• To take a problem more seriously or advance an issue is to do what?
• Which aspect of procurement does sustainability focus on?
• Which factor is not typically included in the piece price?
• What defines a subcontractor?
• Which term refers to the fluctuating levels of stock held by businesses?
• Which organisation in the UK represents British businesses and lobbies the government on their behalf?
• What is the primary function of standards organisations?
• What is the role of the US Food and Drug Administration (FDA)?
• What is SCOR an acronym for in supply chain management?
• What is the term for the efficient flow and storage of goods from point of origin to the point of consumption?
• What does 'fair-washing' refer to?
• What is meant by the term "blue-washing" in corporate social responsibility?
• What bodies are responsible for hearing disputes between employers and employees in the UK regarding employment issues?
• What does 'upstream' refer to in the supply chain?
• What is meant by sourcing in procurement?
• What is the process of dividing organisational spend and suppliers into logical groups called?
• Which term describes the practice of promoting rights and interests of workers collectively?
• What political viewpoint is characterized by a focus on capitalism and individual responsibility?
• Which of the following best defines inventory management?
• What is the primary purpose of supply chain mapping?
• What is the primary goal of social protection systems in the EU?
• What does globalization facilitate in the context of procurement?
• What best defines a value chain in a business context?
• What does strict liability imply?
• What is a union?
• What term describes something that is very profitable?
• How does political economy relate to procurement?
• What is the role of the SCOR model?
• Which of the following identifies a key characteristic of just-in-time (JIT) systems?
• Which term describes the calculation of product costs throughout its entire lifecycle?
• What is outsourcing?
• What do we call a contractual clause that builds economic, social, or environmental conditions into public contracts?
• What term describes suppliers that are members or units within an organisation?
• What significance does variable cost have in pricing strategies?
• Which of the following refers to the responsibilities of a citizen, such as serving on a jury or being a witness in court?
• What is the purpose of a retention of title (ROT) clause in a contract?
• What is the purpose of maintaining safety stock?
• What is the term for a business approach that contributes to sustainable development while delivering benefits for all stakeholders?
• What does the concept 'differentiation' indicate in a competitive market?
• What does the term 'in transit' refer to in logistics?
• What are the contractual terms called that exist but are not formally written down?
• What are the member states of the ILO?
• What is the aim of a service level agreement?
• Why is transparency important in supply chains?
• What does redundancy mean in a workplace setting?
• What are 'target service levels'?
• What is a cartel?
• Which of the following describes a 'tort'?
• What term refers to a pre-set minimum price that must be paid for goods produced as fair trade?
• What is the primary purpose of trade unions?
• What type of knowledge is typically gained through experience and is not documented?
• What is meant by the term 'inventory'?
• What is a National Contact Point under the OECD Guidelines?
• What does transparency in business refer to?
• Who are homeworkers, according to economic definitions?
• Which of the following is typically a characteristic of sunk costs?
• Which of the following best describes a 'sweatshop'?
• What is a corrective action plan primarily focused on?
• How are weightings used by a procurement team?
• What does rapport refer to in a business context?
• Whole-life costs assist organizations in making decisions about which aspects?
• In what way does qualitative data benefit procurement decisions?
• What does service level refer to in a business context?
• What is the lowest point on the average cost curve that helps organizations achieve productive efficiency called?
• What is the term for the process where a manufacturer takes back products to reuse or recycle, reducing waste?
• Which term describes organized systems of employment with contracts and agreed working conditions?
• What is a driver in a business context?
• What is included in total landed costs?
• How can procurement contribute to corporate social responsibility?
• Which term refers to the collective economic output of a country in a fiscal year?
• What does freedom of association mean in the context of labor rights?
• What term is used for marketing practices that mislead consumers about the environmental performance of a company?
• What is the name given to the timeline within a service level agreement for tracking task progress?
• Which cost reduction strategy involves purchasing goods for timely delivery to meet customer demand?
• What does it mean to boycott a business?
• What does process capability measure?
• In the context of supply chains, what do touchpoints refer to?
• Which term describes the process of emitting light due to heat?
• What denotes activities that do not adhere to true fair trade practices?
• What does ACAS stand for in the context of UK industrial relations?
• What type of lighting technology uses less energy than traditional incandescent lights?
• What is the strategy of sourcing materials from countries with lower labour and production costs called?
• In which type of relationship do both buyer and supplier operate independently?
• What defines an oligopsony?
• Which term refers to the long-term evaluation of cost efficiency over a product’s lifecycle?
• What does 'inventory level' refer to?
• What best characterizes ethical sourcing?
• Which approach is taken when resolving a specific issue identified in business operations?
• What characterizes non-governmental organisations (NGOs)?
• What does demand variability refer to?
• What term relates to the geography and international relations between countries?
• How does enterprise resource planning (ERP) benefit project management?
• What is the purpose of the Mutual Information System on Social Protection (MISSOC)?
• Which of the following best describes a multi-national organization?
• What does remuneration mean?
• Which of the following describes fixed costs?
• What term denotes organisations and products certified to Fairtrade International's standards?
• What business strategy focuses on reducing costs through international sourcing?
• Which of the following describes value engineering?
• What do key performance indicators (KPIs) measure in an organization?
• What is an environmental management system primarily concerned with?
• What process helps procurement professionals ensure they do not commit an offence and that suppliers are ethical?
• What is the primary purpose of the Organisation for Economic Co-operation and Development (OECD)?
• What is the National Living Wage (NLW) primarily aimed at ensuring?
• What document formalizes ongoing discussions and records agreements before a legally enforceable contract is drawn up?
• What is the focus of procurement ethics?
• Which factor can influence the value in value engineering?
• What is the purpose of disaster recovery planning?
• What would be a characteristic of a monopoly?
• What are touchpoints in the context of supply chain management?
• Which characteristic is NOT typically associated with multi-national organizations?
• What does the acronym SKU stand for?
• What component is crucial for effective logistics management?
• What is the act of forcing someone to do something using physical force or threats called?
• What does "obsolescence" refer to in supply terms?
• What does the 'third sector' refer to?
• What is the Kraljic matrix used for?
• What term describes the buying and selling of goods and services over the internet?
• What does social advocacy involve?
• What does 'downstream' refer to in the supply chain?
• In what sector are national standards bodies involved?
• Which of the following best describes international procurement organisations (IPOs)?
• What is typically included in a whole-life cost assessment?
• What is defined as a wage sufficient to cover all elements of living for a worker's family?
• What is the primary purpose of a clause for Alternative Dispute Resolution (ADR) in a contract?
• In a legal context, what does it mean if an obligation is 'of the essence'?
• What do whole-life costs (WLC) assess?
• What does a SWOT analysis help identify?
• What are the uncontrollable external factors that influence an organization's performance and decision-making known as?
• What is the implication of the green bullwhip effect on supply chains?
• What does an environmental management system typically include?
• Which term refers to policies that empower individuals to manage economic risks?
• In SRM, what is a key benefit of building supplier relationships?
• What is the main purpose of conducting due diligence in procurement?
• What is the core principle behind the use of Alternative Dispute Resolution (ADR)?
• What does an original equipment manufacturer (OEM) do?
• How do NGOs typically operate in relation to national governments?
• Why are weightings important in procurement assessments?
• What is the main purpose of value chain mapping?
• What is the importance of having an SKU in inventory management?
• What does piece price refer to in a procurement context?
• What does a 'pay when paid' clause specify?
• Which of the following is a characteristic of fair trade?