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The Ethical and Responsible Sourcing (L4M4) study material of Exam4Docs is available in three different and easy-to-access formats. The first one is printable and portable Ethical and Responsible Sourcing (L4M4) PDF format. With the PDF version, you can access the collection of actual CIPS L4M4 Questions with your smart devices like smartphones, tablets, and laptops.
NEW QUESTION # 229
The procurement manager has supplier data: Current Assets = $300 (Stock $200, Debtors $60, Cash $40).
Short-Term Liabilities = $150 (Bank overdraft). Which calculation gives the current ratio?
Answer: A
Explanation:
The current ratio = Current Assets ÷ Current Liabilities. Here, Current Assets = 300; Current Liabilities =
150. Therefore, Current Ratio = 300 ÷ 150 = 2.0. This means the supplier has twice the assets available to cover short-term debts, indicating strong liquidity. The other options incorrectly subtract assets or liabilities, which is not the formula. Responsible sourcing emphasises interpreting ratios accurately: a ratio below 1 signals liquidity risks, while excessively high ratios may indicate inefficient asset utilisation.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - current ratio calculation and interpretation.
NEW QUESTION # 230
Roberto is running a tender in which his main concern is price. However he is keen to hear also about the companies' Corporate Social Responsibility Policies and how this will impact their delivery. Roberto is considering awarding the CSRquestion4 points in a weighted point system. If he does this, what weight should be given to the price?
Answer: A
Explanation:
96 is the correct answer- weighted point systems should add up to 100 (as in 100%)
NEW QUESTION # 231
According to the CIPS code of conduct, which laws should a procurement professional adhere to?
Answer: D
Explanation:
The CIPS Code of Conduct says to adhere to all laws of countries in which I practice. So if you're in the UK and procure stuff from China, you need to abide by both UK and Chinese laws, not just UK laws.
There's no international procurement laws- these are all different for different countries.
ILO doesn't publish laws.
NEW QUESTION # 232
What information would you expect to find on a supplier's response to a 'Request for Information'? Select TWO
Answer: C,D
Explanation:
A RFI typically finds the following information from potential suppliers; ethical and sustainability policies and their capacity / capability to fulfil a contract. It could also include financial position, mission and vision.
NEW QUESTION # 233
A company's balance sheet will show you which of the following?
Answer: D
Explanation:
a balance sheet shows 'equity, assets and liabilities'. The other financial statements you need to know for this exam are cash flow statements and and income statements.
If you're not familiar with these three I strongly recommend you do some further reading on this before the exam if you can. This is helpful: How the 3 Financial Statements are Linked Together - Step by Step (corporatefinanceinstitute.com)
NEW QUESTION # 234
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