CPSM Essentials in Supplier Diversity 4

Question 1

A Historically Underutilized Business Zone (HUBZone) certified firm loses its eligibility when which condition occurs?

Accepted Answer

The principal office relocates out of a designated HUBZone

Answer

HUBZone eligibility requires the principal office to be located in a designated HUBZone, so relocation out of the zone triggers loss of certification.

Question 2

An organization wants to reduce supplier diversity fraud risk. Which control is MOST effective?

Accepted Answer

Requiring third-party certifications from recognized bodies

Answer

Third-party certifications from bodies like NMSDC or WBENC involve rigorous vetting of ownership, control, and operation, providing far stronger fraud protection than self-certification.

Question 3

In supplier diversity, 'fronting' refers to which prohibited practice?

Accepted Answer

A non-diverse firm using a certified diverse firm as a pass-through to win contracts

Answer

Fronting occurs when a large non-diverse company uses a certified diverse firm as a nominal prime contractor while performing most of the work itself, violating the intent of diversity programs.

Question 4

Which of the following is an example of PROACTIVE supplier diversity outreach?

Accepted Answer

Attending NMSDC regional conferences to meet minority suppliers before an RFP is issued

Answer

Proactive outreach involves actively seeking diverse suppliers before a need arises, such as networking at industry events, rather than waiting for suppliers to come to you.

Question 5

What does the term 'intersectionality' mean in the context of supplier diversity?

Accepted Answer

A supplier that qualifies under multiple diversity categories simultaneously

Answer

Intersectionality in supplier diversity recognizes that a business owner may belong to multiple underrepresented groups (e.g., a woman of color who is also a veteran), qualifying them under several diversity designations.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Essentials in Supplier Diversity 4