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Free PDF 2025 CIPS High Pass-Rate L4M4: Ethical and Responsible Sourcing New Dumps Files

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CIPS L4M4 Exam Syllabus Topics:

Topic
Details

Topic 1

• This section examines analyzing market data, obtaining quotations
• tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

Topic 2

• Understand the key processes that can be applied to the analysis of potential external suppliers:

Topic 3

• Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.

Topic 4

• Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.

CIPS Ethical and Responsible Sourcing Sample Questions (Q164-Q169):

NEW QUESTION # 164
Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?

• A. profits
• B. laws
• C. duties
• D. tariffs

Answer: B

Explanation:
This is tariffs. Be careful not to confuse tariffs and duties;
tariffs = rules and duties = payments.

NEW QUESTION # 165
A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?
* Fraudulent activity
* Bribery
* Modern slavery
* Breach of confidentiality

• A. 2 and 4 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1 and 4 only

Answer: C

Explanation:
The withholding of passports is a potential indication of modern slavery, and the offer of a discount to avoid reporting this is a form of bribery. Reporting these ethical concerns aligns with responsiblesourcing practices and is critical for maintaining a supply chain free from human rights abuses.

NEW QUESTION # 166
The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?

• A. (300 ÷ 150) × 100
• B. (300 - 200 - 150) × 100
• C. (300 - 200) ÷ 150
• D. 300 ÷ 150

Answer: D

Explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated by dividing current assets by current liabilities. In this case:
Current Assets = $300
Current Liabilities = $150
Current Ratio = 300 ÷ 150 = 2.0
This indicates that the supplier has twice as many current assets as current liabilities, suggesting good short- term financial health.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3: Financial Appraisal of Suppliers

NEW QUESTION # 167
Which of the following is an advantage to the TUPE regulations?

• A. Continuity of supply for the buying organisation
• B. Reduced overheads for the buying organisation
• C. Increase in buyer power
• D. Value for money for the buying organisation

Answer: A

Explanation:
Continuity of supply for the buying organisation is an advantage of TUPE regulations.
TUPE is the Transfer of Undertakings (Protection of Employment). It's when the workforce / em-ployees of one company go to work for another one, usually after their company is bought out. They're transferred to the new company along with the furniture and buildings.
TUPE is UK specific. You don't need to know too much details about it for this exam - just what it is and the benefits. The main benefit is people don't lose their jobs when their company gets bought out. Basic guide to TUPE (pinsentmasons.com)

NEW QUESTION # 168
The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstances?

• A. No, because international vendors must also be notified of the opportunity
• B. Yes, so that the local pest control sector can decide between them who should bid
• C. No, because they might receive too many irrelevant proposals which may delay the assessing process
• D. Yes, they must seek as many bids as possible, even if it takes longer

Answer: C

Explanation:
Advertising in a local newspaper for a specialized requirement can lead to irrelevant bids, delaying the process. Efficient sourcing practices recommend targeted advertising to reach qualified suppliers, ensuring timely responses and reducing assessment time, especially for urgent needs.

NEW QUESTION # 169
......

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