CIPS L4M8 Practice Exam Questions & Answers

Modern slavery is against ethical and responsible sourcing. Modern slavery is one of the areas to understudy for procurement professionals to carry out ethical and responsible sourcing and this is recognized in five ways.

1. Human trafficking: The process of seeking, recruiting, transporting and exploiting individuals to work against their will. Often human trafficking includes violence, deception, and coercion.

2. Bonded labour (debt bondage): This is an individual's promise to provide service through ex-ploitation as repayment, or part thereof, of a dept or other obligation.

3. Forced labour: Work that people are forced to do with the treat of punishment if it is not carried out.

4. Children labour: The exploitative and illegal employment of children.

5. Domestic slavery: Individuals exploited through working in private households for little or no money in return for living accommodation.

*

Refer to the question column for response

Trade war is an economic conflict where countries make it difficult for global trading to happen. Trade wars can make importing products to a country very expensive. A recent example is the US-China trade war; prices were raised on us-built vehicles exported to China. This affected consumer the most as there was an upshot of price.

Stakeholders are individuals or organizations who are directly affected by a decision for example, community, shareholders, employees, suppliers, distributors, customers etc. stakeholders can be internal (employers, staffs), connected (such as suppliers, shareholders, financers and customers) external (Government, pressure groups, and community).

The matrix that helps define how to manage stakeholders is mendelow's stakeholders manage-ment matrix. This matrix is based on the theory that the level of management stakeholders require depends on the level of their power and interest within the project or organization

The matrix groups stakeholders in to four quadrants according to their power and interest and ad-vice how to manage them.

1) Low power -- Low interest (minimum effort)

2) Low power -- High interest (keep inform)

3) High power -- Low interest (keep satisfied)

4) High power -- high interest (manage closely)

*

Refer to the question column for response

Influencing is the capacity to be able to change behavior or opinions, either consciously or subconsciously.

As outlined by Yukl and falbets work from 1990 influencing can relate to corruption within procurement in these six ways.

1)A party can be assertive (forceful, directive, using deadlines),

2) Ingratiating i.e. using charm and flattery.

3) Exchange-Trading favors,

4) Upward appeal (requesting input for senior management not only that influencing can come as

5) Coalition; team members uniting for support.

5) Rational persuasion, i.e. bringing in logic and facts for clarification

Damages are 'sum of money that the supplier pays if it fails to carry out its contractual obligation.

When creating terms for damages in the contract, it should be considered that Damages are categorized into two types (liquidated and un-liquidated). And which or if both are applicable to the contract in hand.

Liquidate Damages are fixed amount of money agreed between the parties that is payable if a contract is breached. For example, knowing that supplier not being able to install a device properly in a power transformer may destroy the device and going ahead to include a fee in the contract if the device was destroyed.

Un-liquidated damages are unfixed amount of money. It is used when the amount of money that will compensate the injured party cannot be known in advance. A court decides the amount when the damages occur. For example, knowing that supplier not being able to install a device properly in a power transformer may destroy the device, other appliances and equipment unknown, cause the buyer delay in the process and reputational damage as in customer dissatisfaction. Yet, unquantifiable as both parties are unable to fix a fee in advance on the damages and leaving it to the court to decide the damage if it may occur.

*

Refer to the question column for response

When a fixed asset reaches the end of its life, it requires decommissioning before reconditioning or disposal.

Decommissioning is to observe all the safety measures and technical procedures and stop active machinery or an asset from operation (example; gas plant, power generator, transformer etc.

Decommissioning process include the following aspect

1) Preparation: Plan the process

2) Dismantle: Take the asset apart and remove hazardous waste

3) Processing: make safe any hazardous waste

4) Disposal: Ensure paper work is received to confirm removal and disposal

*

Refer to the question column for response