CIPS Exam L4M4 Topic 1 Question 12 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 12
Topic #: 1

[All L4M4 Questions]

The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

ANo, they can reduce risks but will not eliminate them

BNo, they will only provide assurance about the quality of goods

CYes, they are popular because all risks are avoided

DYes, they eliminate all the risks of buying from an overseas supplier

Show Suggested Answer

Suggested Answer: D

A risk of pre-planning an audit is the supplier has time to prepare for it. It's a good thing in that they can get their paperwork in order but the downside is they can overprepare so you don't get a realis-tic representation of what they're doing. One way they can do this is coaching staff in what to say to the auditors.

by Mitzie at May 29, 2024, 12:59 PM

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