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NEW QUESTION # 65
Which of the following factors are typically considered when assessing a supplier's financial capacity?
Answer: B
Explanation:
Profitability and asset levels indicate a supplier's financial stability and ability to meet contract demands.
Responsible sourcing practices include assessing financial capacity to reduce risk in the supply chain and ensure long-term supplier viability.
NEW QUESTION # 66
Added value can be objectively defined. Is this sentence TRUE?
Answer: B
Explanation:
The correct answer is 'no - added value may change from one company to another'.
Added value is very subjective. What one person thinks is excellent added value, another may not rate highly.
For example one buyer may consider a supplier having good brand reputation as added value, but another might not care.
The other no answer is incorrect because added value can be tangible or intangible. Tangible means you can touch and see it and intangible means you can't.
NEW QUESTION # 67
Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.
Answer: C,D
Explanation:
Reasons to outsource include; 'overheads can be kept as effective as possible' and 'the reduction in the need to continually invest in new machinery'.
When you outsource, you transfer the costs of overheads to the supplier and it is their responsibility to buy new machinery as and when is required. For example if you outsource cleaning, the cleaning company is responsible for replacing the hoovers and floor cleaner The other two options would be reasons to keep something 'in-house'.
NEW QUESTION # 68
Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?
Answer: B
Explanation:
This is tariffs. Be careful not to confuse tariffs and duties;
tariffs = rules and duties = payments.
NEW QUESTION # 69
Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO
Answer: B,D
Explanation:
Exchange rates and tariffs are associated with international sourcing.
The other options are concerns for both local sourcing and international sourcing.
NEW QUESTION # 70
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