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| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Exam Format: | Multiple Choice, Scenario-based, Objective Response |
| Real Exam Qty: | 60 |
| Available Languages: | Arabic, Chinese, English, French, Spanish |
| Exam Price: | USD 230 - 280 |
| Related Certifications: | L4M8 Procurement and Supply in Practice L4M1 Scope and Influence of Procurement and Supply L4M7 Whole Life Asset Management L4M3 Commercial Contracting L4M6 Supplier Relationships L4M2 Defining Business Need L4M5 Commercial Negotiation |
| Exam Duration: | 90 minutes |
| Certificate Validity Period: | 3 years |
| Passing Score: | 70% |
| Recommended Training: | CIPS Approved Training Providers CIPS Official Study Guide & Learning Materials |
| Exam Registration: | CIPS Official Registration |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based online or on-site at authorized test centers |
| Pre Condition: | No formal prerequisites; suitable for professionals with 1–2 years of procurement experience or relevant education |
| Official Syllabus URL: | https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing |
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124. Frage
Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
* Review the insurance clauses in the contract
* Check that the supplier's internal policies are up to date
* Check the supplier's conflict of interest register for their contract
* Review the non-disclosure agreement for their contract
Antwort: B
Begründung:
Regularly checking supplier policies and conflict of interest registers helps ensure that suppliers are upholding ethical standards, which supports responsible sourcing practices. This governance activity aligns with ethical guidelines to promote transparency and prevent conflicts that could affect the integrity of the supply chain.
125. Frage
Damian is a procurement professional in the Public Sector. He has recently run a competition to source new uniforms for hospital staff and has decided on a suitable supplier. Should Damian con-duct post tender negotiation with the supplier?
Antwort: A
Begründung:
Damian works in the Public Sector- it is against the law for the public sector to conduct 'post tender negotiation' after a contract has been awarded. This is because it's not transparent and equal opportunities, which are founding principles of public sector procurement.
Private sector can do whatever they want. They can do post-tender negotiations.
NOTE: this is currently the rules as per Public Contract Regulations 2015. These are being superseded in October by new legislation. The study guide doesn't mention this, but it's happening. At the time of writing (January 2023) we don't have the full details about what the new rules are but I doubt they will change on this particular topic. You can find out more about the changes to Public Sector Procurement here: Transforming Public Procurement - GOV.UK (www.gov.uk)
126. Frage
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?
Antwort: A
Begründung:
shareholder equity = the owner/s of the organisation's residual claim once all debts have been paid. What Is Shareholder Equity (SE) and How Is It Calculated? (investopedia.com)
127. Frage
In which type of sourcing arrangement would the development of astrategic alliancebe the most appropriate?
Antwort: D
Begründung:
Astrategic allianceis most appropriate in asingle sourcingarrangement where the buyer relies on one supplier for a significant proportion of supply. Single sourcing encourages long-term collaboration, trust, joint investment, innovation, and shared risk management. Strategic alliances are not suitable for competitive or multiple sourcing, where maintaining competition and switching flexibility is the priority. Internal sourcing does not involve an external supplier relationship. Ethical and responsible sourcing promotes strategic alliances where long-term value, sustainability, quality improvement, and supply continuity are critical to organisational success.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - sourcing strategies; single sourcing and supplier relationships.
128. Frage
Azram, a facilities category buyer for UK police, is sourcing uniforms internationally. Concerned about exchange rate risk, how can Azram remove this risk?
Antwort: D
Begründung:
Exchange rate fluctuations can significantly affect the cost of international contracts. The most direct way to eliminate this risk is to agree prices in the buyer's home currency (GBP Sterling). This passes the risk to the supplier, who must manage currency exposures through hedging or local arrangements. Using the exchange rate at delivery (C) retains exposure for the buyer, while financial analysis (A) and competitive tendering (B) don't address exchange risk. Responsible sourcing requires buyers to consider financial risk-sharing mechanisms as part of contract negotiations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - managing exchange rate risk in international sourcing.
129. Frage
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L4M4 Vorbereitungsfragen: https://www.zertpruefung.de/L4M4_exam.html
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