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CIPS L5M5 real answers - Managing Ethical Procurement and Supply (L5M5)

L5M5
  • Exam Code: L5M5
  • Exam Name: Managing Ethical Procurement and Supply (L5M5)
  • Updated: Sep 13, 2025
  • Q & A: 122 Questions and Answers
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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions:

1. The unethical practice of using information that is not publicly available to trade on the stock market is commonly known as what?

A) bribery
B) kickback
C) greasing the wheels
D) insider trading


2. How can integrating social considerations into sustainable procurement and supply create opportunities for accessing new markets? Select any TWO.

A) By partnering with local suppliers and underrepresented communities, thereby opening up regional markets
B) By ensuring compliance with international labor standards, making products more appealing to ethical consumers
C) By ignoring cultural differences and standardizing products for all markets
D) By solely prioritizing the fastest delivery times, regardless of sourcing practices
E) By focusing exclusively on reducing costs, which attracts price-sensitive customers


3. Which of the following methods does the ILO use to monitor compliance with labor standards in its member states?

A) Reporting system, direct observations, and complaints mechanism
B) Only direct financial audits of companies
C) Direct intervention in national legal systems
D) Monitoring through commercial advertising and media channels


4. A small tech startup (Startup A) is negotiating a partnership with a large corporation (Corp B). Corp B proposes to cover 80% of the development costs but requires Startup A to assume 90% of the risk in the event of product failure.
What is the most significant issue with Corp B's proposal in this negotiation?

A) Corp B is offering a higher percentage of funding than Startup A
B) The partnership will likely lead to profit-sharing conflicts later
C) Startup A will have limited control over the development process
D) The risk is disproportionately shared, placing an unfair burden on Startup A


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


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A,B
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: B

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