{"id":1543,"date":"2022-12-26T11:30:27","date_gmt":"2022-12-26T11:30:27","guid":{"rendered":"https:\/\/blog.examboosts.com\/?p=1543"},"modified":"2022-12-26T11:30:27","modified_gmt":"2022-12-26T11:30:27","slug":"l5m2-practice-exams-and-training-solutions-for-certifications-q69-q91","status":"publish","type":"post","link":"https:\/\/blog.examboosts.com\/zh\/2022\/12\/l5m2-practice-exams-and-training-solutions-for-certifications-q69-q91\/","title":{"rendered":"L5M2 Practice Exams and Training Solutions for Certifications [Q69-Q91]"},"content":{"rendered":"\n\n<div class=\"kk-star-ratings kksr-auto kksr-align-left kksr-valign-top\"\n    data-payload='{&quot;align&quot;:&quot;left&quot;,&quot;id&quot;:&quot;1543&quot;,&quot;slug&quot;:&quot;default&quot;,&quot;valign&quot;:&quot;top&quot;,&quot;ignore&quot;:&quot;&quot;,&quot;reference&quot;:&quot;auto&quot;,&quot;class&quot;:&quot;&quot;,&quot;count&quot;:&quot;1&quot;,&quot;legendonly&quot;:&quot;&quot;,&quot;readonly&quot;:&quot;&quot;,&quot;score&quot;:&quot;4&quot;,&quot;starsonly&quot;:&quot;&quot;,&quot;best&quot;:&quot;5&quot;,&quot;gap&quot;:&quot;5&quot;,&quot;greet&quot;:&quot;Rate this post&quot;,&quot;legend&quot;:&quot;4\\\/5 - (1 vote)&quot;,&quot;size&quot;:&quot;24&quot;,&quot;title&quot;:&quot;L5M2 Practice Exams and Training Solutions for Certifications [Q69-Q91]&quot;,&quot;width&quot;:&quot;113.5&quot;,&quot;_legend&quot;:&quot;{score}\\\/{best} - ({count} {votes})&quot;,&quot;font_factor&quot;:&quot;1.25&quot;}'>\n            \n<div class=\"kksr-stars\">\n    \n<div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n    \n<div class=\"kksr-stars-active\" style=\"width: 113.5px;\">\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n                \n\n<div class=\"kksr-legend\" style=\"font-size: 19.2px;\">\n            4\/5 - (1 vote)    <\/div>\n    <\/div>\n<p><span style=\"color: red;font-size: 18px\"><strong>L5M2 Practice Exams and Training Solutions for Certifications<\/strong><\/span><\/p>\n<p><span style=\"color: red\"><strong>Dumps Free Test Engine Player Verified Answers<\/strong><\/span><\/p>\n<div id=\"watu_quiz\" class=\"quiz-area single-page-quiz\">\n<form action=\"\" method=\"post\" class=\"quiz-form \" id=\"quiz-559\" >\n<div class='watu-question' id='question-1'><div class='question-content'><p><strong>NO.69<\/strong> Which of the following will you put into box 5?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10962' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42900' \/><div class='watu-question-choice'><input type='radio' name='answer-10962[]' id='answer-id-42900' class='answer answer-1 js-answer-label answerof-10962' value='42900' \/>&nbsp;<label for='answer-id-42900' id='answer-label-42900' class='js-answer-label answer label-1'><span class='answer'>service credits<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42901' \/><div class='watu-question-choice'><input type='radio' name='answer-10962[]' id='answer-id-42901' class='answer answer-1 php-answer-label answerof-10962' value='42901' \/>&nbsp;<label for='answer-id-42901' id='answer-label-42901' class='php-answer-label answer label-1'><span class='answer'>NDA<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42902' \/><div class='watu-question-choice'><input type='radio' name='answer-10962[]' id='answer-id-42902' class='answer answer-1 js-answer-label answerof-10962' value='42902' \/>&nbsp;<label for='answer-id-42902' id='answer-label-42902' class='js-answer-label answer label-1'><span class='answer'>Conformance Specification<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42903' \/><div class='watu-question-choice'><input type='radio' name='answer-10962[]' id='answer-id-42903' class='answer answer-1 js-answer-label answerof-10962' value='42903' \/>&nbsp;<label for='answer-id-42903' id='answer-label-42903' class='js-answer-label answer label-1'><span class='answer'>Force Majeure<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>The correct answers are as follows:<br\/>Table Description automatically generated<br\/><img decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/uploads\/2022\/12\/L5M2-75af8987be15361d70a12ede1d5e5332.jpg\"\/><\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(1,this)' id='btn-1' value='See Answer'  \/><input type='hidden' id='questionType1' value='radio' class=''><\/div><div class='watu-question' id='question-2'><div class='question-content'><p><strong>NO.70<\/strong> What would happen if a company enacts its Contingency Agreement following a natural disaster?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10963' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42904' \/><div class='watu-question-choice'><input type='radio' name='answer-10963[]' id='answer-id-42904' class='answer answer-2 js-answer-label answerof-10963' value='42904' \/>&nbsp;<label for='answer-id-42904' id='answer-label-42904' class='js-answer-label answer label-2'><span class='answer'>they will receive a financial pay-out<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42905' \/><div class='watu-question-choice'><input type='radio' name='answer-10963[]' id='answer-id-42905' class='answer answer-2 php-answer-label answerof-10963' value='42905' \/>&nbsp;<label for='answer-id-42905' id='answer-label-42905' class='php-answer-label answer label-2'><span class='answer'>they will receive operational help from a third party<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42906' \/><div class='watu-question-choice'><input type='radio' name='answer-10963[]' id='answer-id-42906' class='answer answer-2 js-answer-label answerof-10963' value='42906' \/>&nbsp;<label for='answer-id-42906' id='answer-label-42906' class='js-answer-label answer label-2'><span class='answer'>they will be able to claim on insurance<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42907' \/><div class='watu-question-choice'><input type='radio' name='answer-10963[]' id='answer-id-42907' class='answer answer-2 js-answer-label answerof-10963' value='42907' \/>&nbsp;<label for='answer-id-42907' id='answer-label-42907' class='js-answer-label answer label-2'><span class='answer'>they will be able to breach any contracts that it has<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>They will receive operational help from a third party is the correct answer. Unlike insurance, a contingency plan provides operational help, not just financial. This could be in providing an emergency workspace, helping to get IT systems back up and running or providing emergency air freight. This is explained on p.91-92 of the study guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(2,this)' id='btn-2' value='See Answer'  \/><input type='hidden' id='questionType2' value='radio' class=''><\/div><div class='watu-question' id='question-3'><div class='question-content'><p><strong>NO.71<\/strong> Fraud committed by an employee within a business is what type of risk?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10964' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42908' \/><div class='watu-question-choice'><input type='radio' name='answer-10964[]' id='answer-id-42908' class='answer answer-3 php-answer-label answerof-10964' value='42908' \/>&nbsp;<label for='answer-id-42908' id='answer-label-42908' class='php-answer-label answer label-3'><span class='answer'>internal risk<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42909' \/><div class='watu-question-choice'><input type='radio' name='answer-10964[]' id='answer-id-42909' class='answer answer-3 js-answer-label answerof-10964' value='42909' \/>&nbsp;<label for='answer-id-42909' id='answer-label-42909' class='js-answer-label answer label-3'><span class='answer'>external risk<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42910' \/><div class='watu-question-choice'><input type='radio' name='answer-10964[]' id='answer-id-42910' class='answer answer-3 js-answer-label answerof-10964' value='42910' \/>&nbsp;<label for='answer-id-42910' id='answer-label-42910' class='js-answer-label answer label-3'><span class='answer'>procurement risk<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42911' \/><div class='watu-question-choice'><input type='radio' name='answer-10964[]' id='answer-id-42911' class='answer answer-3 js-answer-label answerof-10964' value='42911' \/>&nbsp;<label for='answer-id-42911' id='answer-label-42911' class='js-answer-label answer label-3'><span class='answer'>economic risk<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>This is an internal risk. A procurement risk would be issues with a supplier or contract, and economic risk would be exchange rate fluctuations etc. See p.118 for more information on internal risks- it&#8217;s a known exam topic<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(3,this)' id='btn-3' value='See Answer'  \/><input type='hidden' id='questionType3' value='radio' class=''><\/div><div class='watu-question' id='question-4'><div class='question-content'><p><strong>NO.72<\/strong> Which of the following legal principles means that a person can only claim the value of a loss once, regardless of if they have multiple insurance policies?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10965' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42912' \/><div class='watu-question-choice'><input type='radio' name='answer-10965[]' id='answer-id-42912' class='answer answer-4 js-answer-label answerof-10965' value='42912' \/>&nbsp;<label for='answer-id-42912' id='answer-label-42912' class='js-answer-label answer label-4'><span class='answer'>utmost good faith<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42913' \/><div class='watu-question-choice'><input type='radio' name='answer-10965[]' id='answer-id-42913' class='answer answer-4 js-answer-label answerof-10965' value='42913' \/>&nbsp;<label for='answer-id-42913' id='answer-label-42913' class='js-answer-label answer label-4'><span class='answer'>insurable interest<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42914' \/><div class='watu-question-choice'><input type='radio' name='answer-10965[]' id='answer-id-42914' class='answer answer-4 php-answer-label answerof-10965' value='42914' \/>&nbsp;<label for='answer-id-42914' id='answer-label-42914' class='php-answer-label answer label-4'><span class='answer'>contribution<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42915' \/><div class='watu-question-choice'><input type='radio' name='answer-10965[]' id='answer-id-42915' class='answer answer-4 js-answer-label answerof-10965' value='42915' \/>&nbsp;<label for='answer-id-42915' id='answer-label-42915' class='js-answer-label answer label-4'><span class='answer'>subrogation<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>This is contribution. An example of this is if you have two insurance policies and are going on a business trip that is cancelled last minute. You can claim on the insurance the value of the trip- but only once. So you can either use one policy and not the other, or you can claim half the value of the trip on both policies. This stops people taking out multiple policies and then claiming on them all to make a profit. Legal Principles of Insurance is a known exam topic &#8211; this is from p.100-101 of the study guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(4,this)' id='btn-4' value='See Answer'  \/><input type='hidden' id='questionType4' value='radio' class=''><\/div><div class='watu-question' id='question-5'><div class='question-content'><p><strong>NO.73<\/strong> Company X is a large manufacturer of cosmetics and household products. It operates in 57 different countries and has large and complex supply chains. The brand&#8217;s popularity is partly due to the cheap price of the products compared with its competitors and Company X has recently discovered that child labour has been used within its supply chain. In response to this Company X has donated a large amount of money to charity.<br \/>What is this an example of?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10966' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42916' \/><div class='watu-question-choice'><input type='radio' name='answer-10966[]' id='answer-id-42916' class='answer answer-5 js-answer-label answerof-10966' value='42916' \/>&nbsp;<label for='answer-id-42916' id='answer-label-42916' class='js-answer-label answer label-5'><span class='answer'>corporate social responsibility<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42917' \/><div class='watu-question-choice'><input type='radio' name='answer-10966[]' id='answer-id-42917' class='answer answer-5 php-answer-label answerof-10966' value='42917' \/>&nbsp;<label for='answer-id-42917' id='answer-label-42917' class='php-answer-label answer label-5'><span class='answer'>greenwashing<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42918' \/><div class='watu-question-choice'><input type='radio' name='answer-10966[]' id='answer-id-42918' class='answer answer-5 js-answer-label answerof-10966' value='42918' \/>&nbsp;<label for='answer-id-42918' id='answer-label-42918' class='js-answer-label answer label-5'><span class='answer'>triple bottom line thinking<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42919' \/><div class='watu-question-choice'><input type='radio' name='answer-10966[]' id='answer-id-42919' class='answer answer-5 js-answer-label answerof-10966' value='42919' \/>&nbsp;<label for='answer-id-42919' id='answer-label-42919' class='js-answer-label answer label-5'><span class='answer'>business continuity planning<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>This is Greenwashing. Greenwashing is the process of using a good deed to cover up unethical responsibility.<br\/>See p. 45. In this example Company X has thrown some money at a charity in order to cover up the fact it has child labour issues within the supply chain. See https:\/\/en.wikipedia.org\/wiki\/Greenwashing<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(5,this)' id='btn-5' value='See Answer'  \/><input type='hidden' id='questionType5' value='radio' class=''><\/div><div class='watu-question' id='question-6'><div class='question-content'><p><strong>NO.74<\/strong> The legal principle of insurable interest means which of the following statements are TRUE? Select TWO.<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10967' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42920' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10967[]' id='answer-id-42920' class='answer answer-6 js-answer-label answerof-10967' value='42920' \/>&nbsp;<label for='answer-id-42920' id='answer-label-42920' class='js-answer-label answer label-6'><span class='answer'>it is possible to insure someone else&#8217;s factory<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42921' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10967[]' id='answer-id-42921' class='answer answer-6 php-answer-label answerof-10967' value='42921' \/>&nbsp;<label for='answer-id-42921' id='answer-label-42921' class='php-answer-label answer label-6'><span class='answer'>it is not possible to insure someone else&#8217;s factory<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42922' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10967[]' id='answer-id-42922' class='answer answer-6 php-answer-label answerof-10967' value='42922' \/>&nbsp;<label for='answer-id-42922' id='answer-label-42922' class='php-answer-label answer label-6'><span class='answer'>it is possible to insure your supplier&#8217;s factory<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42923' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10967[]' id='answer-id-42923' class='answer answer-6 js-answer-label answerof-10967' value='42923' \/>&nbsp;<label for='answer-id-42923' id='answer-label-42923' class='js-answer-label answer label-6'><span class='answer'>it is not possible to insure your supplier&#8217;s factory<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>Insurable Interest means that it is not possible to insure someone else&#8217;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&#8217;s factory. You can take out CBI insurance for this. see p.100-101 for further explanations of Legal Principles of Insurance<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(6,this)' id='btn-6' value='See Answer'  \/><input type='hidden' id='questionType6' value='checkbox' class=''><\/div><div class='watu-question' id='question-7'><div class='question-content'><p><strong>NO.75<\/strong> The USA Foreign Corrupt Practices Act (FCPA) is further reaching than the UK&#8217;s Bribery Act 2010. Is this statement true?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10968' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42924' \/><div class='watu-question-choice'><input type='radio' name='answer-10968[]' id='answer-id-42924' class='answer answer-7 js-answer-label answerof-10968' value='42924' \/>&nbsp;<label for='answer-id-42924' id='answer-label-42924' class='js-answer-label answer label-7'><span class='answer'>yes- the FCPA covers &#8216;private bribes&#8217; and the Bribery Act does not<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42925' \/><div class='watu-question-choice'><input type='radio' name='answer-10968[]' id='answer-id-42925' class='answer answer-7 js-answer-label answerof-10968' value='42925' \/>&nbsp;<label for='answer-id-42925' id='answer-label-42925' class='js-answer-label answer label-7'><span class='answer'>yes- the FCPA exempts facilitation payments<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42926' \/><div class='watu-question-choice'><input type='radio' name='answer-10968[]' id='answer-id-42926' class='answer answer-7 php-answer-label answerof-10968' value='42926' \/>&nbsp;<label for='answer-id-42926' id='answer-label-42926' class='php-answer-label answer label-7'><span class='answer'>No- the Bribery Act extends to third parties and the FCPA does not<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42927' \/><div class='watu-question-choice'><input type='radio' name='answer-10968[]' id='answer-id-42927' class='answer answer-7 js-answer-label answerof-10968' value='42927' \/>&nbsp;<label for='answer-id-42927' id='answer-label-42927' class='js-answer-label answer label-7'><span class='answer'>No- the Bribery Act doesn&#8217;t account for facilitation payments<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>The correct answer is 3. Firstly you can half the number of responses by looking at the yes \/ no. The UK Bribery Act is further reaching than the FCPA. Therefore the statement is False. You can therefore discount the options that start with yes. Of the two remaining statements only one of them is true and that is number 3- the Bribery Act extends to third parties and the FCPA does not. Option 4 is incorrect as the Bribery Act DOES account for facilitation payments. Its to FCPA that doesn&#8217;t. This is explained on p. 36 of the study guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(7,this)' id='btn-7' value='See Answer'  \/><input type='hidden' id='questionType7' value='radio' class=''><\/div><div class='watu-question' id='question-8'><div class='question-content'><p><strong>NO.76<\/strong> Controlling a risk through the development of actions that can minimise the impact the organisation will suffer as a result of the risk event is known as what control?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10969' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42928' \/><div class='watu-question-choice'><input type='radio' name='answer-10969[]' id='answer-id-42928' class='answer answer-8 js-answer-label answerof-10969' value='42928' \/>&nbsp;<label for='answer-id-42928' id='answer-label-42928' class='js-answer-label answer label-8'><span class='answer'>tolerate<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42929' \/><div class='watu-question-choice'><input type='radio' name='answer-10969[]' id='answer-id-42929' class='answer answer-8 php-answer-label answerof-10969' value='42929' \/>&nbsp;<label for='answer-id-42929' id='answer-label-42929' class='php-answer-label answer label-8'><span class='answer'>treat<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42930' \/><div class='watu-question-choice'><input type='radio' name='answer-10969[]' id='answer-id-42930' class='answer answer-8 js-answer-label answerof-10969' value='42930' \/>&nbsp;<label for='answer-id-42930' id='answer-label-42930' class='js-answer-label answer label-8'><span class='answer'>transfer<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42931' \/><div class='watu-question-choice'><input type='radio' name='answer-10969[]' id='answer-id-42931' class='answer answer-8 js-answer-label answerof-10969' value='42931' \/>&nbsp;<label for='answer-id-42931' id='answer-label-42931' class='js-answer-label answer label-8'><span class='answer'>terminate<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>This is the description of treat mentioned on p. 143. The 4 Ts is a popular exam topic<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(8,this)' id='btn-8' value='See Answer'  \/><input type='hidden' id='questionType8' value='radio' class=''><\/div><div class='watu-question' id='question-9'><div class='question-content'><p><strong>NO.77<\/strong> Which of the following will you put into box 3?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10970' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42932' \/><div class='watu-question-choice'><input type='radio' name='answer-10970[]' id='answer-id-42932' class='answer answer-9 js-answer-label answerof-10970' value='42932' \/>&nbsp;<label for='answer-id-42932' id='answer-label-42932' class='js-answer-label answer label-9'><span class='answer'>hazard<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42933' \/><div class='watu-question-choice'><input type='radio' name='answer-10970[]' id='answer-id-42933' class='answer answer-9 js-answer-label answerof-10970' value='42933' \/>&nbsp;<label for='answer-id-42933' id='answer-label-42933' class='js-answer-label answer label-9'><span class='answer'>financial<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42934' \/><div class='watu-question-choice'><input type='radio' name='answer-10970[]' id='answer-id-42934' class='answer answer-9 php-answer-label answerof-10970' value='42934' \/>&nbsp;<label for='answer-id-42934' id='answer-label-42934' class='php-answer-label answer label-9'><span class='answer'>strategic<br \/>(Correct)<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42935' \/><div class='watu-question-choice'><input type='radio' name='answer-10970[]' id='answer-id-42935' class='answer answer-9 js-answer-label answerof-10970' value='42935' \/>&nbsp;<label for='answer-id-42935' id='answer-label-42935' class='js-answer-label answer label-9'><span class='answer'>operational<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/><img decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/uploads\/2022\/12\/L5M2-d800a565f35c7a8d738d809a1a8eaaf7.jpg\"\/><br\/>An aging workforce is a strategic risk for the business.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(9,this)' id='btn-9' value='See Answer'  \/><input type='hidden' id='questionType9' value='radio' class=''><\/div><div class='watu-question' id='question-10'><div class='question-content'><p><strong>NO.78<\/strong> There are three main areas where third party suppliers are used in risk management. What are they?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10971' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42936' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10971[]' id='answer-id-42936' class='answer answer-10 js-answer-label answerof-10971' value='42936' \/>&nbsp;<label for='answer-id-42936' id='answer-label-42936' class='js-answer-label answer label-10'><span class='answer'>contract negotiations<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42937' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10971[]' id='answer-id-42937' class='answer answer-10 js-answer-label answerof-10971' value='42937' \/>&nbsp;<label for='answer-id-42937' id='answer-label-42937' class='js-answer-label answer label-10'><span class='answer'>supply chain management<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42938' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10971[]' id='answer-id-42938' class='answer answer-10 php-answer-label answerof-10971' value='42938' \/>&nbsp;<label for='answer-id-42938' id='answer-label-42938' class='php-answer-label answer label-10'><span class='answer'>credit ratings<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42939' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10971[]' id='answer-id-42939' class='answer answer-10 php-answer-label answerof-10971' value='42939' \/>&nbsp;<label for='answer-id-42939' id='answer-label-42939' class='php-answer-label answer label-10'><span class='answer'>risk auditing<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42940' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10971[]' id='answer-id-42940' class='answer answer-10 php-answer-label answerof-10971' value='42940' \/>&nbsp;<label for='answer-id-42940' id='answer-label-42940' class='php-answer-label answer label-10'><span class='answer'>disaster recovery<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>3 4 and 5 are the correct answers. This is from p. 79 of the textbook &#8211; each of these three areas is then covered in detail throughout chapter 2.2.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(10,this)' id='btn-10' value='See Answer'  \/><input type='hidden' id='questionType10' value='checkbox' class=''><\/div><div class='watu-question' id='question-11'><div class='question-content'><p><strong>NO.79<\/strong> Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10972' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42941' \/><div class='watu-question-choice'><input type='radio' name='answer-10972[]' id='answer-id-42941' class='answer answer-11 js-answer-label answerof-10972' value='42941' \/>&nbsp;<label for='answer-id-42941' id='answer-label-42941' class='js-answer-label answer label-11'><span class='answer'>increase security of supply risks as this is a tried and tested risk reducing process<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42942' \/><div class='watu-question-choice'><input type='radio' name='answer-10972[]' id='answer-id-42942' class='answer answer-11 php-answer-label answerof-10972' value='42942' \/>&nbsp;<label for='answer-id-42942' id='answer-label-42942' class='php-answer-label answer label-11'><span class='answer'>increase security of supply risks as there is less buffer stock held on site<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42943' \/><div class='watu-question-choice'><input type='radio' name='answer-10972[]' id='answer-id-42943' class='answer answer-11 js-answer-label answerof-10972' value='42943' \/>&nbsp;<label for='answer-id-42943' id='answer-label-42943' class='js-answer-label answer label-11'><span class='answer'>decrease security of supply risks as there will be increased efficiencies<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42944' \/><div class='watu-question-choice'><input type='radio' name='answer-10972[]' id='answer-id-42944' class='answer answer-11 js-answer-label answerof-10972' value='42944' \/>&nbsp;<label for='answer-id-42944' id='answer-label-42944' class='js-answer-label answer label-11'><span class='answer'>decrease security of supply risks as there is less buffer stock<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>2 &#8216;increase security of supply risks as there is less buffer stock held on site&#8217; is the correct answer. With Lean manufacturing there is little or no buffer stock held. This means that if a supplier doesn&#8217;t deliver on time, the whole manufacturing process will have to come to a stop until new supplies arrive. A risk of Lean Manufacturing is that you become too reliant on suppliers, and if there is a scarcity of resources or an issue with the supply chain, you are more exposed. See p.26-27 for more information on Security of Supply Risks.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(11,this)' id='btn-11' value='See Answer'  \/><input type='hidden' id='questionType11' value='radio' class=''><\/div><div class='watu-question' id='question-12'><div class='question-content'><p><strong>NO.80<\/strong> Logistics Risks are caused by&#8230;<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10973' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42945' \/><div class='watu-question-choice'><input type='radio' name='answer-10973[]' id='answer-id-42945' class='answer answer-12 js-answer-label answerof-10973' value='42945' \/>&nbsp;<label for='answer-id-42945' id='answer-label-42945' class='js-answer-label answer label-12'><span class='answer'>heightened ethical standards<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42946' \/><div class='watu-question-choice'><input type='radio' name='answer-10973[]' id='answer-id-42946' class='answer answer-12 js-answer-label answerof-10973' value='42946' \/>&nbsp;<label for='answer-id-42946' id='answer-label-42946' class='js-answer-label answer label-12'><span class='answer'>customer expectations<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42947' \/><div class='watu-question-choice'><input type='radio' name='answer-10973[]' id='answer-id-42947' class='answer answer-12 php-answer-label answerof-10973' value='42947' \/>&nbsp;<label for='answer-id-42947' id='answer-label-42947' class='php-answer-label answer label-12'><span class='answer'>extended supply chains<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42948' \/><div class='watu-question-choice'><input type='radio' name='answer-10973[]' id='answer-id-42948' class='answer answer-12 js-answer-label answerof-10973' value='42948' \/>&nbsp;<label for='answer-id-42948' id='answer-label-42948' class='js-answer-label answer label-12'><span class='answer'>economic instability<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>Extended supply chains create logistic risks. This is from p. 29. Types of risks is a popular exam topic but the questions are usually quite straightforward like this.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(12,this)' id='btn-12' value='See Answer'  \/><input type='hidden' id='questionType12' value='radio' class=''><\/div><div class='watu-question' id='question-13'><div class='question-content'><p><strong>NO.81<\/strong> Which of the following will you put into box 4?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10974' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42949' \/><div class='watu-question-choice'><input type='radio' name='answer-10974[]' id='answer-id-42949' class='answer answer-13 js-answer-label answerof-10974' value='42949' \/>&nbsp;<label for='answer-id-42949' id='answer-label-42949' class='js-answer-label answer label-13'><span class='answer'>hazard<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42950' \/><div class='watu-question-choice'><input type='radio' name='answer-10974[]' id='answer-id-42950' class='answer answer-13 php-answer-label answerof-10974' value='42950' \/>&nbsp;<label for='answer-id-42950' id='answer-label-42950' class='php-answer-label answer label-13'><span class='answer'>financial<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42951' \/><div class='watu-question-choice'><input type='radio' name='answer-10974[]' id='answer-id-42951' class='answer answer-13 js-answer-label answerof-10974' value='42951' \/>&nbsp;<label for='answer-id-42951' id='answer-label-42951' class='js-answer-label answer label-13'><span class='answer'>strategic<br \/>(Correct)<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42952' \/><div class='watu-question-choice'><input type='radio' name='answer-10974[]' id='answer-id-42952' class='answer answer-13 js-answer-label answerof-10974' value='42952' \/>&nbsp;<label for='answer-id-42952' id='answer-label-42952' class='js-answer-label answer label-13'><span class='answer'>operational<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/><img decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/uploads\/2022\/12\/L5M2-d800a565f35c7a8d738d809a1a8eaaf7.jpg\"\/><br\/>Anything to do with currency is a financial risk.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(13,this)' id='btn-13' value='See Answer'  \/><input type='hidden' id='questionType13' value='radio' class=''><\/div><div class='watu-question' id='question-14'><div class='question-content'><p><strong>NO.82<\/strong> Which of the following are factors which can lead to a supplier becoming insolvent? Select THREE<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10975' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42953' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10975[]' id='answer-id-42953' class='answer answer-14 php-answer-label answerof-10975' value='42953' \/>&nbsp;<label for='answer-id-42953' id='answer-label-42953' class='php-answer-label answer label-14'><span class='answer'>fraudulent activity<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42954' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10975[]' id='answer-id-42954' class='answer answer-14 php-answer-label answerof-10975' value='42954' \/>&nbsp;<label for='answer-id-42954' id='answer-label-42954' class='php-answer-label answer label-14'><span class='answer'>attrition of key employees<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42955' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10975[]' id='answer-id-42955' class='answer answer-14 php-answer-label answerof-10975' value='42955' \/>&nbsp;<label for='answer-id-42955' id='answer-label-42955' class='php-answer-label answer label-14'><span class='answer'>uncontrolled expenditure<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42956' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10975[]' id='answer-id-42956' class='answer answer-14 js-answer-label answerof-10975' value='42956' \/>&nbsp;<label for='answer-id-42956' id='answer-label-42956' class='js-answer-label answer label-14'><span class='answer'>increased market share<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42957' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10975[]' id='answer-id-42957' class='answer answer-14 js-answer-label answerof-10975' value='42957' \/>&nbsp;<label for='answer-id-42957' id='answer-label-42957' class='js-answer-label answer label-14'><span class='answer'>a high financial ratio<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>1 2 and 3 are factors which can lead to a supplier becoming insolvent. 4- increased market share is a good thing, as it indicates the supplier is doing better than their rivals. A high financial ratio is also a good thing as it shows they have more assets than debt &#8211; so this is not a sign of insolvency. See p.24 for &#8216;Supplier Risks&#8217;<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(14,this)' id='btn-14' value='See Answer'  \/><input type='hidden' id='questionType14' value='checkbox' class=''><\/div><div class='watu-question' id='question-15'><div class='question-content'><p><strong>NO.83<\/strong> SA 8000 is an alternative to which ISO?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10976' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42958' \/><div class='watu-question-choice'><input type='radio' name='answer-10976[]' id='answer-id-42958' class='answer answer-15 js-answer-label answerof-10976' value='42958' \/>&nbsp;<label for='answer-id-42958' id='answer-label-42958' class='js-answer-label answer label-15'><span class='answer'>9001<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42959' \/><div class='watu-question-choice'><input type='radio' name='answer-10976[]' id='answer-id-42959' class='answer answer-15 js-answer-label answerof-10976' value='42959' \/>&nbsp;<label for='answer-id-42959' id='answer-label-42959' class='js-answer-label answer label-15'><span class='answer'>27000<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42960' \/><div class='watu-question-choice'><input type='radio' name='answer-10976[]' id='answer-id-42960' class='answer answer-15 js-answer-label answerof-10976' value='42960' \/>&nbsp;<label for='answer-id-42960' id='answer-label-42960' class='js-answer-label answer label-15'><span class='answer'>310000<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42961' \/><div class='watu-question-choice'><input type='radio' name='answer-10976[]' id='answer-id-42961' class='answer answer-15 php-answer-label answerof-10976' value='42961' \/>&nbsp;<label for='answer-id-42961' id='answer-label-42961' class='php-answer-label answer label-15'><span class='answer'>20400<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>SA8000 is Social Accountability, this is an alternative to ISO 20400 which is Sustainable Procurement. This is explained on p.53 of the study guide. ISOs are a popular exam topic, so ensure you know these four mentioned here before the exam<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(15,this)' id='btn-15' value='See Answer'  \/><input type='hidden' id='questionType15' value='radio' class=''><\/div><div class='watu-question' id='question-16'><div class='question-content'><p><strong>NO.84<\/strong> Khalid is a procurement manager who works at a manufacturing organisation based in the UK. The organisation creates building fabric materials by converting raw materials such as steal into useable items in the construction industry. Khalid sources most of his steal internationally due to competitive prices. On one occasion with his usual supplier, the ship that is carrying the materials sinks due to an unexpected storm.<br \/>Which clause would be activated within the contract?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10977' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42962' \/><div class='watu-question-choice'><input type='radio' name='answer-10977[]' id='answer-id-42962' class='answer answer-16 php-answer-label answerof-10977' value='42962' \/>&nbsp;<label for='answer-id-42962' id='answer-label-42962' class='php-answer-label answer label-16'><span class='answer'>force majeure<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42963' \/><div class='watu-question-choice'><input type='radio' name='answer-10977[]' id='answer-id-42963' class='answer answer-16 js-answer-label answerof-10977' value='42963' \/>&nbsp;<label for='answer-id-42963' id='answer-label-42963' class='js-answer-label answer label-16'><span class='answer'>liability clause<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42964' \/><div class='watu-question-choice'><input type='radio' name='answer-10977[]' id='answer-id-42964' class='answer answer-16 js-answer-label answerof-10977' value='42964' \/>&nbsp;<label for='answer-id-42964' id='answer-label-42964' class='js-answer-label answer label-16'><span class='answer'>transportation clause<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42965' \/><div class='watu-question-choice'><input type='radio' name='answer-10977[]' id='answer-id-42965' class='answer answer-16 js-answer-label answerof-10977' value='42965' \/>&nbsp;<label for='answer-id-42965' id='answer-label-42965' class='js-answer-label answer label-16'><span class='answer'>breach of contract<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>this is an example of force majeure. Force majeure is a popular exam topic and comes up in chapter 2.1 p. 66.<br\/>A force majeure is when an event, such as a storm, happens which affects the delivery of the contract, but over which neither party has any control.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(16,this)' id='btn-16' value='See Answer'  \/><input type='hidden' id='questionType16' value='radio' class=''><\/div><div class='watu-question' id='question-17'><div class='question-content'><p><strong>NO.85<\/strong> What is the purpose of an indemnity clause within a contract?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10978' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42966' \/><div class='watu-question-choice'><input type='radio' name='answer-10978[]' id='answer-id-42966' class='answer answer-17 js-answer-label answerof-10978' value='42966' \/>&nbsp;<label for='answer-id-42966' id='answer-label-42966' class='js-answer-label answer label-17'><span class='answer'>to assign risk to each party<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42967' \/><div class='watu-question-choice'><input type='radio' name='answer-10978[]' id='answer-id-42967' class='answer answer-17 js-answer-label answerof-10978' value='42967' \/>&nbsp;<label for='answer-id-42967' id='answer-label-42967' class='js-answer-label answer label-17'><span class='answer'>to ensure both parties are adequately insured if something were to go wrong<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42968' \/><div class='watu-question-choice'><input type='radio' name='answer-10978[]' id='answer-id-42968' class='answer answer-17 php-answer-label answerof-10978' value='42968' \/>&nbsp;<label for='answer-id-42968' id='answer-label-42968' class='php-answer-label answer label-17'><span class='answer'>to transfer risk from one party to another<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42969' \/><div class='watu-question-choice'><input type='radio' name='answer-10978[]' id='answer-id-42969' class='answer answer-17 js-answer-label answerof-10978' value='42969' \/>&nbsp;<label for='answer-id-42969' id='answer-label-42969' class='js-answer-label answer label-17'><span class='answer'>to explain what would happen in the case of a force majeure<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>Indemnity clauses transfer risk from one party to another. It is an arrangement whereby one party promises to compensate the other party for a trigger event. An example of an indemnity clause could be a construction firm is building a new bridge and the project is supposed to be completed by 1st June. An indemnity clause may state that should the bridge not be ready by this date, the construction firm will compensate the buyer by X amount. See p.61 for more information on indemnity.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(17,this)' id='btn-17' value='See Answer'  \/><input type='hidden' id='questionType17' value='radio' class=''><\/div><div class='watu-question' id='question-18'><div class='question-content'><p><strong>NO.86<\/strong> ISO 20400 represents what area of business?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10979' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42970' \/><div class='watu-question-choice'><input type='radio' name='answer-10979[]' id='answer-id-42970' class='answer answer-18 js-answer-label answerof-10979' value='42970' \/>&nbsp;<label for='answer-id-42970' id='answer-label-42970' class='js-answer-label answer label-18'><span class='answer'>Quality Management<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42971' \/><div class='watu-question-choice'><input type='radio' name='answer-10979[]' id='answer-id-42971' class='answer answer-18 js-answer-label answerof-10979' value='42971' \/>&nbsp;<label for='answer-id-42971' id='answer-label-42971' class='js-answer-label answer label-18'><span class='answer'>Supply Chain Security<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42972' \/><div class='watu-question-choice'><input type='radio' name='answer-10979[]' id='answer-id-42972' class='answer answer-18 js-answer-label answerof-10979' value='42972' \/>&nbsp;<label for='answer-id-42972' id='answer-label-42972' class='js-answer-label answer label-18'><span class='answer'>Risk Management<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42973' \/><div class='watu-question-choice'><input type='radio' name='answer-10979[]' id='answer-id-42973' class='answer answer-18 php-answer-label answerof-10979' value='42973' \/>&nbsp;<label for='answer-id-42973' id='answer-label-42973' class='php-answer-label answer label-18'><span class='answer'>Sustainable Procurement<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>ISO 20400 is Sustainable Procurement. This is from p. 51 of the study guide- as well as learning what the ISO numbers are, do also learn the key areas of each ISO as these come up in the exam.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(18,this)' id='btn-18' value='See Answer'  \/><input type='hidden' id='questionType18' value='radio' class=''><\/div><div class='watu-question' id='question-19'><div class='question-content'><p><strong>NO.87<\/strong> Which of the following will you put into box 5?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10980' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42974' \/><div class='watu-question-choice'><input type='radio' name='answer-10980[]' id='answer-id-42974' class='answer answer-19 php-answer-label answerof-10980' value='42974' \/>&nbsp;<label for='answer-id-42974' id='answer-label-42974' class='php-answer-label answer label-19'><span class='answer'>new technology<br \/>(Correct)<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42975' \/><div class='watu-question-choice'><input type='radio' name='answer-10980[]' id='answer-id-42975' class='answer answer-19 js-answer-label answerof-10980' value='42975' \/>&nbsp;<label for='answer-id-42975' id='answer-label-42975' class='js-answer-label answer label-19'><span class='answer'>forward contract<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42976' \/><div class='watu-question-choice'><input type='radio' name='answer-10980[]' id='answer-id-42976' class='answer answer-19 js-answer-label answerof-10980' value='42976' \/>&nbsp;<label for='answer-id-42976' id='answer-label-42976' class='js-answer-label answer label-19'><span class='answer'>outsource<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42977' \/><div class='watu-question-choice'><input type='radio' name='answer-10980[]' id='answer-id-42977' class='answer answer-19 js-answer-label answerof-10980' value='42977' \/>&nbsp;<label for='answer-id-42977' id='answer-label-42977' class='js-answer-label answer label-19'><span class='answer'>insurance<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/><img decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/uploads\/2022\/12\/L5M2-d800a565f35c7a8d738d809a1a8eaaf7.jpg\"\/><br\/>New technology (ie a new web portal or payment mechanism) would help treat this risk.<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(19,this)' id='btn-19' value='See Answer'  \/><input type='hidden' id='questionType19' value='radio' class=''><\/div><div class='watu-question' id='question-20'><div class='question-content'><p><strong>NO.88<\/strong> Robot Ltd manufactures high end robots. A lot of value is tied up in the stock that it holds within its warehouse as each robot is worth several thousand pounds. The company has decided to enlist the services of a third party provider for disaster recovery, to help them shape a plan for if something were to happen to the stock, such as a flood. Is this the correct thing for Robot Ltd to do?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10981' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42978' \/><div class='watu-question-choice'><input type='radio' name='answer-10981[]' id='answer-id-42978' class='answer answer-20 php-answer-label answerof-10981' value='42978' \/>&nbsp;<label for='answer-id-42978' id='answer-label-42978' class='php-answer-label answer label-20'><span class='answer'>yes- a 3rd party can provide broader experience and expertise<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42979' \/><div class='watu-question-choice'><input type='radio' name='answer-10981[]' id='answer-id-42979' class='answer answer-20 js-answer-label answerof-10981' value='42979' \/>&nbsp;<label for='answer-id-42979' id='answer-label-42979' class='js-answer-label answer label-20'><span class='answer'>yes- a third party is a cheap option for disaster recovery planning<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42980' \/><div class='watu-question-choice'><input type='radio' name='answer-10981[]' id='answer-id-42980' class='answer answer-20 js-answer-label answerof-10981' value='42980' \/>&nbsp;<label for='answer-id-42980' id='answer-label-42980' class='js-answer-label answer label-20'><span class='answer'>no- Robot Ltd should create a cross-functional team to draw up the plan as internal stakeholders will understand the risks better than a 3rd party<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42981' \/><div class='watu-question-choice'><input type='radio' name='answer-10981[]' id='answer-id-42981' class='answer answer-20 js-answer-label answerof-10981' value='42981' \/>&nbsp;<label for='answer-id-42981' id='answer-label-42981' class='js-answer-label answer label-20'><span class='answer'>no &#8211; a 3rd party can only help in the solution stage of disaster recovery, not the planning stage<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>The correct answer is 1 &#8211; the 3rd party can provide broader experience and expertise. They can advise on best practice and will know how to advise Robot Ltd as they will have experience across a wide range of companies. This is explained on p.91 of the study guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(20,this)' id='btn-20' value='See Answer'  \/><input type='hidden' id='questionType20' value='radio' class=''><\/div><div class='watu-question' id='question-21'><div class='question-content'><p><strong>NO.89<\/strong> Which of the following statements is true about a Disaster Recovery Plan? Select TWO<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10982' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42982' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10982[]' id='answer-id-42982' class='answer answer-21 js-answer-label answerof-10982' value='42982' \/>&nbsp;<label for='answer-id-42982' id='answer-label-42982' class='js-answer-label answer label-21'><span class='answer'>it is held at the top level<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42983' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10982[]' id='answer-id-42983' class='answer answer-21 php-answer-label answerof-10982' value='42983' \/>&nbsp;<label for='answer-id-42983' id='answer-label-42983' class='php-answer-label answer label-21'><span class='answer'>it contains more detail than a business continuity plan<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42984' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10982[]' id='answer-id-42984' class='answer answer-21 js-answer-label answerof-10982' value='42984' \/>&nbsp;<label for='answer-id-42984' id='answer-label-42984' class='js-answer-label answer label-21'><span class='answer'>the focus is to return a company to making a profit after a disaster<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42985' \/><div class='watu-question-choice'><input type='checkbox' name='answer-10982[]' id='answer-id-42985' class='answer answer-21 php-answer-label answerof-10982' value='42985' \/>&nbsp;<label for='answer-id-42985' id='answer-label-42985' class='php-answer-label answer label-21'><span class='answer'>it can be structured using a standardised framework<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>Answers 2 and 4 are correct. A Business Continuity Plan is held at the top level, not a disaster recovery plan.<br\/>This can be held at the department level- or whoever would have the ability to enact this if a disaster were to happen. A company is likely to have several Disaster Recovery Plans for different departments and different scenarios so several people within the organisation may be accountable for these. Option 3 is incorrect as the focus is on recovering systems (e.g. getting people back online) not on profit. P.155<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(21,this)' id='btn-21' value='See Answer'  \/><input type='hidden' id='questionType21' value='checkbox' class=''><\/div><div class='watu-question' id='question-22'><div class='question-content'><p><strong>NO.90<\/strong> Which of the following is an example of force majeure?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10983' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42986' \/><div class='watu-question-choice'><input type='radio' name='answer-10983[]' id='answer-id-42986' class='answer answer-22 js-answer-label answerof-10983' value='42986' \/>&nbsp;<label for='answer-id-42986' id='answer-label-42986' class='js-answer-label answer label-22'><span class='answer'>The supplier delivers materials late due to a breakdown<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42987' \/><div class='watu-question-choice'><input type='radio' name='answer-10983[]' id='answer-id-42987' class='answer answer-22 js-answer-label answerof-10983' value='42987' \/>&nbsp;<label for='answer-id-42987' id='answer-label-42987' class='js-answer-label answer label-22'><span class='answer'>The supplier asks for an uplift in prices<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42988' \/><div class='watu-question-choice'><input type='radio' name='answer-10983[]' id='answer-id-42988' class='answer answer-22 js-answer-label answerof-10983' value='42988' \/>&nbsp;<label for='answer-id-42988' id='answer-label-42988' class='js-answer-label answer label-22'><span class='answer'>The supplier is under criminal investigation for fraud<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42989' \/><div class='watu-question-choice'><input type='radio' name='answer-10983[]' id='answer-id-42989' class='answer answer-22 php-answer-label answerof-10983' value='42989' \/>&nbsp;<label for='answer-id-42989' id='answer-label-42989' class='php-answer-label answer label-22'><span class='answer'>The supplier&#8217;s factory is hit by a hurricane<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>The hurricane is the force majeure event. Natural disasters such as this, or any events outside of the parties&#8217; control could be considered force majeure. This is a popular exam topic &#8211; see p. 66 in the study guide<\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(22,this)' id='btn-22' value='See Answer'  \/><input type='hidden' id='questionType22' value='radio' class=''><\/div><div class='watu-question' id='question-23'><div class='question-content'><p><strong>NO.91<\/strong> Which of the following will you put into box 7?<\/p>\n<\/div><input type='hidden' name='question_id[]' value='10984' \/><div class='watu-questions-wrap '><input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42990' \/><div class='watu-question-choice'><input type='radio' name='answer-10984[]' id='answer-id-42990' class='answer answer-23 js-answer-label answerof-10984' value='42990' \/>&nbsp;<label for='answer-id-42990' id='answer-label-42990' class='js-answer-label answer label-23'><span class='answer'>audit<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42991' \/><div class='watu-question-choice'><input type='radio' name='answer-10984[]' id='answer-id-42991' class='answer answer-23 js-answer-label answerof-10984' value='42991' \/>&nbsp;<label for='answer-id-42991' id='answer-label-42991' class='js-answer-label answer label-23'><span class='answer'>monitor<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42992' \/><div class='watu-question-choice'><input type='radio' name='answer-10984[]' id='answer-id-42992' class='answer answer-23 php-answer-label answerof-10984' value='42992' \/>&nbsp;<label for='answer-id-42992' id='answer-label-42992' class='php-answer-label answer label-23'><span class='answer'>insurance<\/span><\/label><\/div>\n<input type='hidden' name='answer_ids[]' class='watu-answer-ids' value='42993' \/><div class='watu-question-choice'><input type='radio' name='answer-10984[]' id='answer-id-42993' class='answer answer-23 js-answer-label answerof-10984' value='42993' \/>&nbsp;<label for='answer-id-42993' id='answer-label-42993' class='js-answer-label answer label-23'><span class='answer'>dual sourcing<\/span><\/label><\/div>\n<\/div><div class='show-question-feedback' style='display:none;'>Explanation<br\/>The correct answers are as follows:<br\/>Table Description automatically generated with low confidence<br\/><img decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/uploads\/2022\/12\/L5M2-0aa43db17a37fcc8df4dfd58e65e10bb.jpg\"\/><\/div><input type='button' class='showchecked' style='margin: 10px 0;' onclick='showanswer1(23,this)' id='btn-23' value='See Answer'  \/><input type='hidden' id='questionType23' value='radio' class=''><\/div><div style='display:none' id='question-24'><br \/><div class='question-content'><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/plugins\/watu\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading ...\" title=\"Loading ...\" \/>&nbsp;Loading &#8230;<\/div><\/div><br \/>\n<input type=\"button\" name=\"action\" onclick=\"Watu.submitResult()\" id=\"action-button\" style=\"margin:0 auto 20px auto;\" value=\"View Results\"  class=\"watu-submit-button\" \/>\n<input type=\"hidden\" name=\"no_ajax\" value=\"0\"><input type=\"hidden\" name=\"quiz_id\" value=\"559\" \/>\n<input type=\"hidden\" id=\"watuStartTime\" name=\"start_time\" value=\"2026-09-23 16:49:35\" \/>\n<\/form>\n<\/div>\n<div id=\"watu-loading-result\" style=\"display:none;\">\n\t<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/blog.examboosts.com\/wp-content\/plugins\/watu\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading\" title=\"Loading\" \/><\/p>\n<\/div>\t\n<script type=\"text\/javascript\">\nvar exam_id=0;\nvar question_ids='';\nvar watuURL='';\njQuery(function($){\nquestion_ids = \"10962,10963,10964,10965,10966,10967,10968,10969,10970,10971,10972,10973,10974,10975,10976,10977,10978,10979,10980,10981,10982,10983,10984\";\nexam_id = 559;\nWatu.exam_id = exam_id;\nWatu.qArr = question_ids.split(',');\nWatu.post_id = 1543;\nWatu.singlePage = '1';\nWatu.hAppID = \"0.55789900 1790182175\";\nwatuURL = \"https:\/\/blog.examboosts.com\/wp-admin\/admin-ajax.php\";\nWatu.noAlertUnanswered = 0;\n});\n\nfunction showanswer1(e,q) {\n\tvar check = new Array();\n\tjQuery('.answer-' + e).each(function (i) {\n\t\tcheck.push(this.checked)\n\t})\n\tlet textval = jQuery('.watu-textarea-' + e).val()\n\tif (jQuery.inArray(true, check) >= 0 || textval !== '' && textval !== undefined) {\n\t\tjQuery(q).stop().fadeOut(300)\n\t\tjQuery('.php-answer-label.label-' + e).addClass(\n\t\t\t'correct-answer'\n\t\t)\n\t\tjQuery('.answer-' + e).each(function (i) {\n\t\t\tif (this.checked && this.className.match(\/js\\-answer\/)) {\n\t\t\t\tvar number = this.id.toString().replace(\/\\D\/g, '')\n\t\t\t\tif (number) {\n\t\t\t\t\tjQuery('#answer-label-' + number).addClass('user-answer')\n\t\t\t\t}\n\t\t\t}\n\t\t})\n\t\tjQuery(q).siblings('.show-question-feedback').stop().fadeIn(300)\n\t\ttextval = ''\n\t} else if (textval == '' || textval == undefined){\n\t\t\/\/jQuery(\".hint\").stop().fadeIn(300)\n\t\talert('Please first answer the question');\n\t}\n}\nvar btnisshow = jQuery(\".php-answer-label\").length\nif (btnisshow > 0) {\n\tjQuery('.showchecked').show()\n} else {\n\tjQuery('.showchecked').hide()\n}\n<\/script>\n<p><strong>Q&amp;As with Explanations Verified &amp; Correct Answers: <a href=\"https:\/\/www.examboosts.com\/CIPS\/L5M2-practice-exam-dumps.html\" target=\"_blank\" rel=\"noopener\">https:\/\/www.examboosts.com\/CIPS\/L5M2-practice-exam-dumps.html<\/a><\/strong><\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>L5M2 Practice Exams and Training Solutions for Certifications Dumps Free Test Engine Player Verified Answers Q&amp;As with Explanations Verified &amp; Correct Answers: https:\/\/www.examboosts.com\/CIPS\/L5M2-practice-exam-dumps.html<\/p>","protected":false},"author":1,"featured_media":1544,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3869,3868],"tags":[3861,3865,3860,3866,3862,3867,3863,3864],"class_list":["post-1543","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cips","category-l5m2","tag-l5m2-latest-exam-dumps-file","tag-l5m2-latest-test-guide-files","tag-l5m2-new-dumps-ebook","tag-l5m2-preparation-store","tag-l5m2-reliable-test-questions","tag-l5m2-valid-test-collection-file","tag-new-l5m2-exam-duration","tag-new-l5m2-test-cram-pdf"],"_links":{"self":[{"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/posts\/1543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/comments?post=1543"}],"version-history":[{"count":0,"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/posts\/1543\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/media\/1544"}],"wp:attachment":[{"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/media?parent=1543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/categories?post=1543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.examboosts.com\/zh\/wp-json\/wp\/v2\/tags?post=1543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}