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Free L5M2 – Managing Supply Chain Risk Practice Test Question

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Showing 4–6 of 10 questions

Question 4

Maple Tree Limited is a Canadian company who has recently signed a new contract with a supplier who is based in China. Maple Tree Limited will be buying a raw material with a reputation for severe price fluctuations. Which of the following would help mitigate the risk that this poses? Select TWO options

Select all that apply, then click Submit answer.

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    quote in the supplier's currency
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    quote in the buyer's currency
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    use a forward exchange contract
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    fix the exchange rate at the current rate
Question 5

Which of the following statements are true about risk management? Select TWO.

Select all that apply, then click Submit answer.

  • ○

    the goal of risk management is to reduce risks to 0
  • ○

    risk management is a continuous process
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    risk management is an activity that is conducted by a business once a year
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    risk management can help companies ensure the smooth and successful running of purchase and supply operations
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    risk management is the process by which all risks are either treated or transferred
Question 6

What is the purpose of the Sarbanes-Oxley Regulation?

Select an option, then click Submit answer.

  • ○

    to protect the environment
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    to ensure high levels of ethical practice with regards to working conditions
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    to encourage transparency in financial reporting
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    to ensure that products that reach the market are fit for purpose