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New developments in the tech sector always bring new job opportunities. These new jobs have to be filled with the Managing Ethical Procurement and Supply (L5M5) (L5M5) certification holders. So to fill the space, you need to pass the Managing Ethical Procurement and Supply (L5M5) (L5M5) exam. Earning the Managing Ethical Procurement and Supply (L5M5) (L5M5) certification helps you clear the obstacles you face while working in the CIPS field. To get prepared for the Managing Ethical Procurement and Supply (L5M5) (L5M5) certification exam, applicants face a lot of trouble if the study material is not updated. They are using outdated materials resulting in failure and loss of money and time.
CIPS L5M5 Exam Syllabus Topics:
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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q25-Q30):
NEW QUESTION # 25
Which of the following statements is TRUE about the adjudication form of dispute resolution? Select TWO
- A. A decision must be made within 28 days
- B. It is an informal process
- C. It is quicker than going through the courts
- D. The decision cannot be legally binding
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Adjudication is a formal ADR method, widely used in construction and supply disputes. The L5M5 study guide (p.237) outlines its key features: it is designed to be faster than court proceedings and legally requires that a decision is reached within 28 days of referral. Decisions made can also be legally binding. Contrary to option A, adjudication is not informal; it follows structured legal processes. Option D is also incorrect, as adjudicator decisions may carry binding authority unless overturned later in arbitration or litigation. The process ensures disputes are resolved promptly, preventing long project delays.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.237
NEW QUESTION # 26
Ahmed Electronics is conducting an audit to assess its compliance with regulatory requirements, security protocols, and risk management policies. What type of audit does this represent?
- A. external audit
- B. 3rd party audit
- C. benchmarking audit
- D. compliance audit
Answer: D
Explanation:
Choice C - A compliance audit is a type of audit conducted to ensure that an organization adheres to regulatory guidelines, security policies, and risk management procedures. Its primary focus is on verifying conformity with external regulations, internal policies, and standards. This is the correct answer.
Incorrect answer:
Choice A - Focuses on financial statements and is usually conducted by an independent body for external stakeholders.
Choice B - Performed by an external organization to assess compliance with specific standards, often for certification purposes.
Choice D- Involves comparing an organization's performance or practices against industry standards or best practices, not necessarily focused on compliance.
Reference:
LO-2.3; Page 207-208; Sourcing third parties for auditing services
NEW QUESTION # 27
Ruben is buying new machinery for his factory. He chooses a more expensive option after considering ESG factors. Why might this be?
- A. The more expensive item will be more environmentally friendly
- B. The higher-priced item is from a more reputable company
- C. In terms of life-cycle costing, the more expensive item may be cheaper in the long term
- D. The higher-priced item will be of better quality
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Procurement often considers Whole Life Cycle Costing (WLCC) rather than upfront cost alone. The L5M5 study guide (p.7) explains that while a product may be more expensive initially, it may be cheaper in the long term due to lower maintenance costs, greater durability, and reduced energy use. This approach supports sustainability by balancing financial and environmental impacts. Options A, B, and D cannot be assumed from the scenario since no evidence supports them. WLCC ensures procurement delivers long-term value, aligning with sustainability goals.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.7
NEW QUESTION # 28
Which of the following are effective ways to promote equality in the supply chain? Select any TWO.
1. Fair payment policy
2. Having business integrity
3. Share documents and information on equality
4. Working with businesses that are run by men as they are more hard working
- A. 3 and 4
- B. 1 and 3
- C. 1 and 2
- D. 2 and 4
Answer: B
Explanation:
Choice 1- Having a fair payment policy indicates respect which is one of the ways of ensuring equality in supply chain.
Choice 3- Share documents and information on equality is a way of supporting the supply chain to achieve equality.
Incorrect answer:
Choice 2- While important, business integrity primarily relates to ethical practices and transparency, but does not specifically address equality in the supply chain.
Choice 4- This statement perpetuates gender bias and does not support equality. It is not a valid approach to achieving equality in the supply chain.
Therefore, the correct answer is Option C
Reference:
LO-1.1; Page 36; Role of EDI in securing ethical and sustainable procurement and supply arrangements
NEW QUESTION # 29
Which of the following scenarios best illustrate instances of bribery?
- A. 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
- B. 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
- 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. 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
Answer: A
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 # 30
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