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NEW QUESTION 38
Which of the following will you put into box 6?

• A. strategic
• B. operational
• C. intellectual property
• D. environment

Answer: B

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated

NEW QUESTION 39
Zara is a procurement manager who is thinking about working with a new supplier to source buttons for her clothes manufacturing business. Her manager has asked her to do some due diligence on the supplier's financial stability. What should she do?

• A. conduct a credit check on the supplier based on the information provided by them in the tender
• B. conduct a risk assessment based on the information provided by the supplier in the tender
• C. use an outsourced third-party credit rating agency
• D. use an outsources third-party risk management consultant

Answer: C

Explanation:
Explanation
She should use a credit rating agency for this. She should not do this herself as she won't have access to accurate information like an agency will. The supplier may not have been truthful in their tender. For information on Credit Rating Agencies see p.79

NEW QUESTION 40
What is the purpose of the Sarbanes-Oxley Regulation?

• A. to ensure that products that reach the market are fit for purpose
• B. to ensure high levels of ethical practice with regards to working conditions
• C. to protect the environment
• D. to encourage transparency in financial reporting

Answer: D

Explanation:
Explanation
Sarbanes Oxley Regulations encourages transparency in financial reporting. The regulations came in response to the Enron scandal in 2001 when Enron bosses were falsifying financial records to make the company look better than it was, then the company went bust. The point of Sarbanes Oxley is to ensure that this doesn't happen again- that business leaders report correct financial statements to shareholders. The study guide talks about this on p.42 but I'd recommend also watching this video as it gives a good background to the regulation:
https://www.investopedia.com/terms/s/sarbanesoxleyact.asp

NEW QUESTION 41
......