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[General] L5M5 Exam Simulator | L5M5 Valid Test Test

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【General】 L5M5 Exam Simulator | L5M5 Valid Test Test

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CIPS L5M5 Exam Syllabus Topics:
TopicDetails
Topic 1
  • Understand initiatives and standards related to ESG (Environmental, Social, and Governance) that support ethical and sustainable procurement and supply: This section of the exam measures the skills of Procurement Leaders and covers the global frameworks and standards that shape ethical supply practices. It explores international labour standards set by organizations such as the UN and ILO, and labour codes like the Ethical Trading Initiative and SA800. Candidates also examine external environmental frameworks, industry accreditations, and their role in meeting ESG goals. Finally, this section addresses fair trade principles, organizations such as WFTO and Fairtrade International, and the need to align internal governance with global standards.
Topic 2
  • Understand the importance of compliance with ESG (Environmental, Social, and Governance) factors to achieve ethical and sustainable procurement and supply arrangements: This section of the exam measures skills of Supply Chain Specialists and covers methods to ensure compliance with ESG standards in procurement. It includes the use of supply chain mapping, risk management, stakeholder engagement, and contractual terms to secure sustainable practices. Candidates also learn how to monitor supplier performance, handle non-compliance, and utilize third-party auditors to maintain ethical standards. Relationship management strategies, corrective actions, and escalation processes are emphasized as part of ensuring suppliers meet ESG expectations.
Topic 3
  • Understand the impact of ESG (Environmental, Social, and Governance) considerations on ethical and sustainable supply chains: This section of the exam measures the skills of Procurement Managers and covers how ESG principles are applied to secure ethical and sustainable supply chains. It looks at the role of environmental, social, and governance factors in procurement decisions, alongside risks and benefits of ESG adoption. Learners also explore issues such as modern slavery, bribery, and human rights, as well as the importance of diversity, inclusion, and stakeholder management. The section highlights how globalization, culture, and labour practices shape supply strategies and examines potential conflicts that may arise when balancing ESG priorities with business demands.

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q67-Q72):NEW QUESTION # 67
A construction company contracts a supplier to deliver steel beams for a project, with the contract specifying that "time is of the essence," requiring delivery by January 31. However, due to unexpected delays, the supplier delivers the beams on February 5, causing project delays and financial losses for the construction company.
What is the most likely consequence of the supplier missing the deadline when "time is of the essence" is a contractual condition?
  • A. The buyer can terminate the contract and seek damages for losses incurred
  • B. The supplier is entitled to an extension of the delivery deadline
  • C. The buyer must renegotiate the contract terms to account for the delay
  • D. The buyer is required to accept the late delivery without penalty
Answer: A
Explanation:
Choice B- When "time is of the essence" is a condition in a contract, meeting the specified timeline is a critical obligation. A failure to meet the deadline constitutes a breach of contract, allowing the aggrieved party (the buyer) to terminate the contract and claim damages for any resulting losses. The other options are inconsistent with the legal consequences of this type of clause.
Incorrect answer:
Choice A- When "time is of the essence" is a condition, delivery by the specified date is critical. If the supplier fails to meet the deadline, the buyer is not obligated to accept the late delivery. Instead, they have the right to terminate the contract and potentially seek damages. Accepting late delivery would only occur if the buyer explicitly waives the "time is of the essence" clause.
Choice C- "Time is of the essence" leaves no room for flexibility in meeting deadlines unless the contract explicitly allows for extensions (e.g., due to force majeure or renegotiated terms). In this case, the supplier's delays, unless excused by the contract, result in a breach.
Choice D- The buyer is not obligated to renegotiate the contract when "time is of the essence" is breached. They have the legal right to terminate the contract and pursue remedies, including damages. Renegotiation would only occur if both parties voluntarily agree to modify the terms.
Reference:
LO-2.2; Page 189-190; Monitoring Contract Performance

NEW QUESTION # 68
Which of the following is not considered to be an alternative form of dispute resolution?
  • A. Mediation
  • B. Litigation
  • C. Adjudication
  • D. Conciliation
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Alternative Dispute Resolution (ADR) mechanisms are encouraged in procurement as they save time, reduce costs, and preserve business relationships. The key ADR methods listed in the L5M5 study guide (p.188) include mediation, adjudication, and conciliation. These methods are designed as alternatives to litigation, which involves courts, legal judgments, and lengthy processes. Litigation is not an ADR method; it is the traditional approach, often more adversarial and costly. Procurement professionals are encouraged to adopt ADR whenever possible, as it helps maintain collaborative supplier relationships while resolving conflicts effectively.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, new edition p.188

NEW QUESTION # 69
Which of the following is NOT part of the UN's 17 Sustainable Development Goals?
  • A. End poverty in all its forms, everywhere
  • B. Eradicate unethical business practices
  • C. Take urgent action to combat climate change
  • D. Reduce inequality within and among countries
Answer: B
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The UN's 17 Sustainable Development Goals (SDGs) form the 2030 Agenda for Sustainable Development. They cover areas such as ending poverty (A), reducing inequality (B), and combatting climate change (C). However, eradicate unethical business practices (D) is not one of the listed goals. The L5M5 study guide (p.4) stresses that while business ethics are important, the SDGs are broader, covering social, environmental, and economic development priorities. Procurement professionals should be able to identify the SDGs, as supply chain policies are increasingly aligned with them to support global sustainability efforts.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.4

NEW QUESTION # 70
While low-cost country sourcing can provide substantial cost savings for buyers, it also comes with significant risks. Which of the following should be avoided as a potential target for low-cost country sourcing?
  • A. A country with stable tax and tariff structures
  • B. A country that is remote geographically but with good transportation routes
  • C. A country where companies use Just in Time (JIT) method of SCM
  • D. A country consisting of workers with detailed knowledge of the product
Answer: C
Explanation:
Choice B-It is important to calculate the potential cost of a supplier failing to meet the level of service timeline. If a company uses JIT methods of supply chain management, then LCCS is not a suitable option especially for critical components because delivery delays can be costly and disruptive. Without backup inventory, customers may have to wait for the company to receive supplies and manufacture the product. Thus is the correct answer.
Incorrect answer:
Choice A- A country with good transportation routes is critical to analyse as shipping will be fairly economical. Therefore is a potential target for LCCS.
Choice C- Level of education and skills of workers in chosen low cost country will help in producing vital key components as they will specialize in them. Thus this country should be a potential target of LCCS.
Choice D- Tariffs and taxes can significantly impact the cost-effectiveness of sourcing from low-cost countries. Understanding the export taxation in the source country and import tariffs in one's own country is crucial. This being stable can help in calculating and making a decision of selecting a country for low cost sourcing.
Reference:
LO-1.2; Page 76; Low-cost country sourcing

NEW QUESTION # 71
Which of the following actions could create a conflict between profitability and social value among stakeholders?
  • A. Offering competitive prices to customers
  • B. Implementing environmentally sustainable practices
  • C. Cutting costs by reducing employee wages
  • D. Engaging in corporate social responsibility initiatives
Answer: C
Explanation:
Choice B- Cutting costs by reducing employee wages is the action that could lead to a conflict between profitability and social value. While it might improve short-term profits, it can negatively affect employee morale, retention, and overall company reputation, leading to long-term challenges.
Incorrect answer:
Choice A- This action typically enhances social value by promoting environmental responsibility. While it may involve higher upfront costs, in the long run, it can lead to savings, increased customer loyalty, and a stronger brand reputation. Thus, it usually aligns profitability with social value rather than conflicting with it.
Choice C- Engaging in CSR initiatives often enhances a company's reputation and fosters goodwill within the community. While it may require financial investment and could impact short-term profits, it generally aligns with social value and can lead to long-term benefits, such as customer loyalty and brand strength.
Choice D- Offering competitive prices may initially seem like a strategy focused solely on profitability. However, it can also enhance social value by making products more accessible to a broader audience. If done without compromising quality or ethical standards, this option usually does not create a conflict but can benefit both profitability and social value.
Reference:
LO-1.4; Page 137; Comprehensive stakeholder consultations and engagement

NEW QUESTION # 72
......
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