SA8000 is Social Accountability, this is an alternative to ISO 20400 which is Sustainable Procurement. This is explained on p.53 of the study guide. ISOs are a popular exam topic, so ensure you know these four mentioned here before the exam
Question 2
Which of the following are benefits of ISO28000? Select TWO.
Answer : A, B
Advantages of ISO28000 are competitive advantage and cost savings. The textbook explains that cost savings come through a reduction in security incidents. For more info on ISO28000 see p. 141
Question 3
Which organisation created the Decent Work Agenda?
Answer : C
This is from ILO- the International Labour Organisation - see p.49 of the textbook. You should recognise all four of these acronyms as they come up in this module UN= United Nations - they have the Guiding Principles, ISO = produce standards for business practices and ETI = Ethical Trading Initiative - they have a base code for labour practices.
Question 4
Which of the following statements about normal distribution are correct? Select TWO
Answer : A, E
1 and 5 are correct- it is the most common type of distribution and it looks like a bell curve when it's drawn as a graph. There's one on p.127 to look at. The other three statements are incorrect- it's a bell shape rather than a curve, it requires a large number of data points and most of the data points correlate around the middle.
Question 5
Which of the following is not a benefit of having a contingency plan?
Answer : D
Contingency plans won't increase your profit, but they will do the other three things. This is from p.109-110 of the study guide
Question 6
Chloe is a procurement manager at Ruby Company. She has been asked to join a cross-functional team to review the company's risk appetite, potential risks within the supply chain and brainstorm mitigating actions. Chloe has suggested that the cross-functional team should first draw up a list of potential supply chain risks and potential strategies to overcome the risks. Is Chloe correct?
Answer : C
The correct answer is 3 'no- the team should review the company's risk appetite before creating a risk register'. This questions tests to see if you understand what risk appetite is and when this should be reviewed. Risk appetite is the first stage in developing any plan as it will influence the next stages. For example if the company has a large risk appetite, this would affect how they would classify risks and what mitigating actions they would take. Risk appetite is explained in chapter 1.1 (p.4) but it also comes up in Learning Outcome 3
Question 7
A large multi-national corporation has just been awarded a credit rating of C by the three main credit rating agencies. What does this score signify?
Answer : C
a C grade = substantial risk. This is based on the grading system of AAA-D and is explained on p. 80. basically anything that isn't an A is bad.
All Official Question Types