2023 L5M2 Paper | Certification L5M2 Training & Test Managing Supply Chain Risk Engine Version
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NEW QUESTION 27
Fudgylicious Inc is a manufacturer of confectionary based in the United Kingdom. In one of its factories an employee has an accident during his shift which resulted in him breaking a leg and requiring surgery. Will the employer's Professional Indemnity insurance cover the cost of the operation?- A. yes- the insurance can be used as the accident occurred on the company's premises
- B. no- this is not the purpose of insurance
- C. no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work
- D. yes- the insurance will cover all medical expenses as the accident occurred during his working hours
Answer: B
Explanation:
Explanation
The correct answer is 'no-this is not the purpose of insurance'. The question asks if Professional Indemnity Insurance can be claimed on for this- no it can't- that's not its purpose. It would be Employer's Liability insurance which could be claimed on. This question tests your understanding of the different types of insurance. There is a very similar question in the exam- so remember accidents at work are claimed against Employer's Liability insurance NOT Professional Indemnity insurance - see p.96 for more information on different types of insurance
NEW QUESTION 28
Fraud committed by an employee within a business is what type of risk?- A. external risk
- B. economic risk
- C. internal risk
- D. procurement risk
Answer: C
Explanation:
Explanation
This is an internal risk. A procurement risk would be issues with a supplier or contract, and economic risk would be exchange rate fluctuations etc. See p.118 for more information on internal risks- it's a known exam topic
NEW QUESTION 29
Dave is a procurement manager for a chocolate factory who is running a tender to source cocoa from a new supplier. The tender is a huge opportunity for suppliers and the contract would be worth millions of pounds.
Dave has passed some information about the tender to one of the bidders in exchange for a free holiday to Barbados. Which of the following types of fraud has Dave committed?- A. counterfeiting
- B. bribery
- C. holiday fraud
- D. accepting a kick-back
Answer: B
Explanation:
Explanation
This is an example of bribery. The trip to Barbados is the bribe. For more information on these types of fraud see p.19
NEW QUESTION 30
Which of the following will you put into box 5?- A. Standardise Payment Terms
- B. Quote in Buyer's Currency
- C. CSR Policy
- D. Force Majeure
Answer: C
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
CSR= Corporate Social Responsibility
NEW QUESTION 31
Which of the following will you put into box 1?- A. tolerate
- B. transfer
- C. treat
- D. terminate
Answer: B
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
Nothing can be done to change this risk (you can't stop an earthquake from happening), so you therefore need to transfer the risk to another party, or include for this within a contract.
NEW QUESTION 32
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