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NEW QUESTION 36
Which of the following will you put into box 5?

A. monitorB. auditC. insuranceD. dual sourcing

Answer: A

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated with low confidence

 

NEW QUESTION 37
Which of the following statements are true about risk management? Select TWO.

A. risk management is an activity that is conducted by a business once a yearB. risk management is the process by which all risks are either treated or transferredC. the goal of risk management is to reduce risks to 0D. risk management is a continuous processE. risk management can help companies ensure the smooth and successful running of purchase and supply operations

Answer: D,E

Explanation:
Explanation
The correct responses are 2 and 4: risk management is a continual process and helps companies ensure the smooth and successful running of P+S. These are direct quotes from p.3 of the study guide. The other answers are wrong- if risk management is a continuous process it's not something that is done once a year- so this option is automatically discounted. Option 1 is also wrong as you can never reduce all risks to 0, and option 5 is also wrong- risks can be treated and transferred, but they can also be tolerated and terminated.

 

NEW QUESTION 38
The legal principle of insurable interest means which of the following statements are TRUE? Select TWO.

A. it is possible to insure your supplier's factoryB. it is possible to insure someone else's factoryC. it is not possible to insure someone else's factoryD. it is not possible to insure your supplier's factory

Answer: A,C

Explanation:
Explanation
Insurable Interest means that it is not possible to insure someone else's factory. The study guide explains that you can only take out insurance where you have at least partial ownership of that risk. Therefore option 3 is also correct as you have a partial risk if something were to happen to your supplier's factory. You can take out CBI insurance for this. see p.100-101 for further explanations of Legal Principles of Insurance

 

NEW QUESTION 39
Which of the following will you put into box 8?

A. auditB. monitorC. insuranceD. dual sourcing

Answer: A

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated with low confidence

 

NEW QUESTION 40
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