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CIPS Ethical and Responsible Sourcing L4M4 Question # 85 Topic 9 Discussion

CIPS Ethical and Responsible Sourcing L4M4 Question # 85 Topic 9 Discussion

L4M4 Exam Topic 9 Question 85 Discussion:
Question #: 85
Topic #: 9

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


A.

Yes, because this rating indicates poor financial management practices


B.

No, because a credit rating is only one financial tool to be used in determining financial competence


C.

No, because a credit rating is not an appropriate decision-making tool


D.

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


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