Which of the following are technological risks to an organisation? Select TWO
Answer(s): A,D
Cyber security and network failure are two types of security risks. See. P. 154. There aren't a lot of questions on chapter 3.4 as it's a very short chapter and a lot of the material is repeated in earlier chapters. A brief look over this chapter is all you'll need before the exam.
Maple Tree Limited is a Canadian company who has recently signed a new contract with a supplier who is based in Chin
Answer(s): C,D
The correct answers are 3 + 4. To mitigate the risk, you want to ensure price stability for the duration of the contract- you don't want the prices to keep going up and down. Therefore options 1 and 2 wouldn't help- the prices would still go up and down regardless of which currency was used for quotes. Using a forward contract, or fixing the exchange rate, however, would give price certainty,and therefore mitigate the risk. See p.23 for more information on currency risks and how to overcome these
Neruda Incorporated is evaluating potential suppliers' financial standings as part of a tender. Which of the following companies is the most financially stable?
Answer(s): D
Company D is the strongest. You want a company with high liquidity (this means they can easily pay any debts) and low gearing (meaning that their company isn't financed by debt). This question comes from p.24 of the CIPS study guide. It doesn't go into a lot of detail on financial ratios and gearing, as this was covered in Level 4. If you're rusty on financial ratios and gearing I recommend revising these before the exam.
Which of the following statements is true about ISO9001? Select TWO.
Answer(s): A,B
ISO 9001 is Quality Management- answers 1 and 2 are correct. ISOs are a popular topic on this exam so be sure to revise them - and not only what the names of them are, but also the principles behind each ISO. ISO 9001 is discussed on p. 25 of the CIPS study guide.
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