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CIPS Ethical and Responsible Sourcing L4M4 Question # 53 Topic 6 Discussion

CIPS Ethical and Responsible Sourcing L4M4 Question # 53 Topic 6 Discussion

L4M4 Exam Topic 6 Question 53 Discussion:
Question #: 53
Topic #: 6

Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?


A.

The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply


B.

Financial assessments provide a holistic view of a company's capability, including quality and delivery performance


C.

A supplier who is highly profitable will be charging prices higher than the average market rate


D.

If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs


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