Question 1

2021-07-23-19-21-32-e2efebc73ed7d3407c3ab0a1142d7f4e

Which of the following will you put into box 7?

Options :

A : service credits

B : NDA

C : Conformance Specification

D : Force Majeure

Answer: C

Question 2

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

Options :

A : 1,2,5

B : 1,3,4

C : 2,4,5

D : 3,4,5

Answer: A

Question 3

Which of the following risks would likely be tolerated by a company?

Options :

A :

no risks should be tolerated

B : opportunities which are low risk and low impact

C : opportunities which are low risk and high impact

D : opportunities which are high risk and low impact

Answer: B

Question 4

Leo LLP is a company which sources materials internationally, and then sells these on nationally at a small margin. Leo LLP has noted that there is a risk of exchange rate fluctuations making their purchases unviable. The CFO has declared that the only way to mitigate this risk is via hedging and that they should look at price fixing. is this correct?

Options :

A : yes- hedging is the only solution to mitigate the risk of adverse price movements

B : yes- this reduces the risk to 0

C : no- Leo LLP could do nothing and increase its prices instead

D : no- Leo LLP can take out insurance to mitigate this risk

Answer: C

Question 5

2021-07-23-19-56-44-05fa1d78ad7a1743f61eeeab62b1a8ba

Which of the following will you put into box 8?

Options :

A : audit

B : monitor

C : insurance

D : dual sourcing

Answer: A