CIPS Exam L4M4 Topic 3 Question 29 Discussion

Actual exam question for CIPS's L4M4 exam

Question #: 29
Topic #: 3

[All L4M4 Questions]

Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

AYes, because this rating indicates poor financial management practices

BNo, because a credit rating is only one financial tool to be used in determining financial competence

CNo, because a credit rating is not an appropriate decision-making tool

DYes, because this rating means that insolvency or liquidation is imminent

Show Suggested Answer

Suggested Answer: C

The correct answer is 'no- quoting in the supplier's currency increases the risk for the buyer'. This questions comes up in a variety of formats in the exam. Remember; if the price is in your own currency (most examples in the exam are given in ) there is less risk than if the prices are quoted in a foreign currency. This is because exchange rates fluctuate; if the price is in you always know what you're paying, if it's in another currency the price can change daily depending on if the exchange rate compared to has gone up or down.

by Derrick at Jan 22, 2025, 01:18 AM

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Eden

3 days ago

I think the statement is TRUE.

upvoted 0 times

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