CIPS Ethical and Responsible Sourcing L4M4 Question # 27 Topic 3 Discussion

CIPS Ethical and Responsible Sourcing L4M4 Question # 27 Topic 3 Discussion

L4M4 Exam Topic 3 Question 27 Discussion:
Question #: 27
Topic #: 3

Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?


A.

use the Return on Investment Ratio


B.

do an Acid Test


C.

work out the supplier's EBITDA


D.

work out the supplier's gearing ratio


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