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NEW QUESTION 25
Which of the following is a component of the Sarbanes-Oxley Regulations?

  • A. ethical business practices
  • B. environmental protection
  • C. separation of duties
  • D. elimination of bribery

Answer: C

Explanation:
Explanation
Separation of duties is a key component of the Sarbanes-Oxley Regulations. It ensures businesses are accounting responsibly, and one way to do this is through separation of duties (no one person has complete control of the accounts of a company). See https://www.investopedia.com/terms/s/sarbanesoxleyact.asp and p.42 in the study guide. This piece of legislation does tend to come up in the exam so do revise this topic.

 

NEW QUESTION 26
Company X is a large manufacturer of cosmetics and household products. It operates in 57 different countries and has large and complex supply chains. The brand's popularity is partly due to the cheap price of the products compared with its competitors and Company X has recently discovered that child labour has been used within its supply chain. In response to this Company X has donated a large amount of money to charity.
What is this an example of?

  • A. triple bottom line thinking
  • B. corporate social responsibility
  • C. business continuity planning
  • D. greenwashing

Answer: D

Explanation:
Explanation
This is Greenwashing. Greenwashing is the process of using a good deed to cover up unethical responsibility.
See p. 45. In this example Company X has thrown some money at a charity in order to cover up the fact it has child labour issues within the supply chain. See https://en.wikipedia.org/wiki/Greenwashing

 

NEW QUESTION 27
Which of the following will you put into box 2?

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

Answer: B

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
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NEW QUESTION 28
Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?

  • A. Poisson Distribution
  • B. normal distribution
  • C. value at risk
  • D. binomial distribution

Answer: A

Explanation:
Explanation
Poisson Distribution would be used for this. Poisson Distribution predicts the likelihood of an event occurring.
This is explained on p. 129 of the study guide but this YouTube video explains it a lot better:
https://www.youtube.com/watch?v=zA7fp2s7FlM

 

NEW QUESTION 29
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