Question 1

A company can develop its own code of conduct or adopt an NGO or industrywide code.

Accepted Answer

A) True 
 B)False

Question 2

One reason lead firms do not change suppliers is due to moral obligation to the workers and community not to cause job loss.

Accepted Answer

A) True 
 B)False

Question 3

A growing trend is for lead firms to work collaboratively with their suppliers to build capabilities and create shared value.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the social,ethical,and environmental issues that affect suppliers.Provide three examples of suppliers that are currently raising concerns for their lead firms.

Accepted Answer

Social, ethical, and environmental issue...

Question 5

Global lead firms that depend on farmed,extracted,or mined resources run a relatively high risk for human rights abuses by their suppliers.

Accepted Answer

A) True 
 B)False

Question 6

When suppliers endure audit after audit by different lead firms,this is called:

Accepted Answer

A)   Crowd-sourced auditing.
B)   Third-party auditing.
C)   Audit chaos.
D)   Audit fatigue.E) C) and D)
F) A) and D)

Question 7

When firms invest in suppliers to exchange knowledge and collaborate on improvements,they create shared value for:

Accepted Answer

A)   The supplier only.
B)   The lead firm only.
C)   Both the supplier and the lead firm.
D)   The public.E) C) and D)
F) All of the above

Question 8

Under what conditions might a lead firm choose to develop a supplier rather than replace them?

Accepted Answer

A lead firm might choose to develop a su...

Question 9

What is one drawback of conducting supplier audits?

Accepted Answer

A)   Workers trust the auditors to the point of giving away company secrets.
B)   Audits scale so well across the supply chain that only general averages can be collected.
C)   On-site inspections are expensive.
D)   On-site inspections are so fast that teams must conduct hundreds of them in a single day.E) A) and D)
F) B) and D)

Question 10

Which of these statements accurately describe codes of conduct?

Accepted Answer

A)   Most early codes of conduct were developed by individual companies.
B)   The adoption rate of industry-specific codes of conduct is currently decreasing.
C)   Standard-setting organizations have failed to influence industries and individual firms.
D)   The costs of building common industry standards have become prohibitive.E) B) and D)
F) B) and C)

Question 11

Define suppliers and explain their interests and power,especially as related to lead firms.How has globalization affected the supply chain?

Accepted Answer

Suppliers are individuals or businesses ...

Question 12

How can a lead firm improve a supplier's performance when the cost to replace the supplier is high?

Accepted Answer

A)   Engage the supplier in capability-building.
B)   Fire the supplier.
C)   Report the supplier to the Better Business Bureau.
D)   Build the supplier's products internally.E) A) and C)
F) None of the above

Question 13

Which of these programs offer a common auditing tool for sharing data on the labor,environmental and ethical practices of suppliers?

Accepted Answer

A)   Sustainable Compliance Initiative.
B)   Federal Trade Commission.
C)   Sedex Global.
D)   Both A and C, but not B.E) B) and D)
F) B) and C)

Question 14

When a lead firm invests in supplier resources or offers training,this is an example of:

Accepted Answer

A)   Root cause analysis.
B)   Supplier development.
C)   Supply chain auditing.
D)   Shared value.E) B) and D)
F) All of the above

Question 15

Which type of supplier audit is being used when a company hires and trains its own staff of auditors?

Accepted Answer

A)   External.
B)   Third-party.
C)   Factory.
D)   Internal.E) C) and D)
F) A) and D)

Question 16

Lead firms often choose to develop their supplier's capabilities when the supplier has a strong management team,many resources,and high technical knowledge.

Accepted Answer

A) True 
 B)False

Question 17

About 80 percent of human trafficking victims are:

Accepted Answer

A)   Women and girls forced into prostitution.
B)   Men enslaved into farming.
C)   Men and women involuntarily placed in textile factories.
D)   Low-paid hospitality workers.E) A) and B)
F) C) and D)

Question 18

According to a recent survey,what percentage of firms would terminate a supplier if serious violations were found?

Accepted Answer

A)   7 percent.
B)   26 percent.
C)   48 percent.
D)   97 percent.E) B) and D)
F) B) and C)

Question 19

According to a recent survey of supply chain managers,which of these social and environmental issues was the most important?

Accepted Answer

A)   Supplier diversity.
B)   Energy efficiency.
C)   Ethical issues.
D)   Health and safety.E) B) and D)
F) A) and D)

Question 20

Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?

Accepted Answer

A)   The number of widely used suppliers decreased.
B)   Lead firms preferred larger suppliers.
C)   Lead firms sought ongoing strategic relationships.
D)   All of the above.E) B) and D)
F) B) and C)

Exam 17: Business and Its Suppliers

A growing trend is for lead firms to work collaboratively with their suppliers to build capabilities and create shared value.

Correct AnswerverifiedShow Answer

When suppliers endure audit after audit by different lead firms,this is called:

Correct AnswerverifiedShow Answer

What is one drawback of conducting supplier audits?

Correct AnswerverifiedShow Answer

How can a lead firm improve a supplier's performance when the cost to replace the supplier is high?

Correct AnswerverifiedShow Answer

Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?

Correct AnswerverifiedShow Answer

Which of these programs offer a common auditing tool for sharing data on the labor,environmental and ethical practices of suppliers?

Correct AnswerverifiedShow Answer

According to a recent survey of supply chain managers,which of these social and environmental issues was the most important?

Correct AnswerverifiedShow Answer

Under what conditions might a lead firm choose to develop a supplier rather than replace them?

Correct AnswerAnswered by ExamLex AIA lead firm might choose to develop a su...View AnswerShow Answer

Which of these statements accurately describe codes of conduct?

Correct AnswerverifiedShow Answer

One reason lead firms do not change suppliers is due to moral obligation to the workers and community not to cause job loss.

Correct AnswerverifiedShow Answer

A company can develop its own code of conduct or adopt an NGO or industrywide code.

Correct AnswerverifiedShow Answer

When a lead firm invests in supplier resources or offers training,this is an example of:

Correct AnswerverifiedShow Answer

About 80 percent of human trafficking victims are:

Correct AnswerverifiedShow Answer

When firms invest in suppliers to exchange knowledge and collaborate on improvements,they create shared value for:

Correct AnswerverifiedShow Answer

Global lead firms that depend on farmed,extracted,or mined resources run a relatively high risk for human rights abuses by their suppliers.

Correct AnswerverifiedShow Answer

Discuss the social,ethical,and environmental issues that affect suppliers.Provide three examples of suppliers that are currently raising concerns for their lead firms.

Correct AnswerAnswered by ExamLex AISocial, ethical, and environmental issue...View AnswerShow Answer

Which type of supplier audit is being used when a company hires and trains its own staff of auditors?

Correct AnswerverifiedShow Answer

Lead firms often choose to develop their supplier's capabilities when the supplier has a strong management team,many resources,and high technical knowledge.

Correct AnswerverifiedShow Answer

Define suppliers and explain their interests and power,especially as related to lead firms.How has globalization affected the supply chain?

Correct AnswerAnswered by ExamLex AISuppliers are individuals or businesses ...View AnswerShow Answer

According to a recent survey,what percentage of firms would terminate a supplier if serious violations were found?

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
A lead firm might choose to develop a su...
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Answered by ExamLex AI
Social, ethical, and environmental issue...
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Answered by ExamLex AI
Suppliers are individuals or businesses ...
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