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| Certification Vendor: | CIPS (Chartered Institute of Procurement & Supply) |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Certificate Validity Period: | No fixed expiry (qualification remains valid once achieved) |
| Real Exam Qty: | Approximately 60 questions |
| Passing Score: | 50% |
| Exam Format: | Computer-based exam, Scenario-based questions, Multiple choice questions |
| Available Languages: | English |
| Exam Duration: | 120 minutes |
| Exam Price: | Varies by region and assessment center (typically ~£70–£120 per module) |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Recommended Training: | CIPS Official Learning Resources CIPS Study Hub |
| Exam Registration: | CIPS Official Qualifications Page CIPS Exams and Assessment Information |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based examination delivered via authorized test centers (e.g., Pearson VUE) and/or remote proctored options depending on region. |
| Pre Condition: | No formal prerequisites, but typically taken as part of CIPS Level 4 Diploma progression. Level 3 Diploma knowledge is recommended. |
| Official Syllabus URL: | https://www.cips.org |
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NEW QUESTION # 59
Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to. Which of the following is a benefit of incorporating standards as a requirement within a specification?
Answer: B
Explanation:
Incorporating recognized standards into procurement specifications provides clear guidelines for suppliers, reducing ambiguity and ensuring that products or services meet predefined quality and safety criteria. This is particularly important in sectors like healthcare, where equipment must adhere to strict standards to ensure patient safety and operational efficiency.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.3: Specifications and Standards
NEW QUESTION # 60
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?
Answer: B
Explanation:
The current ratio is calculated by dividing total current assets by total current liabilities. Here, dividing $300 by $150 gives a current ratio of 2.0, indicating that the supplier has adequate current assets to cover its short- term obligations, an important factor in supplier evaluation.
NEW QUESTION # 61
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will be used across multiple doctors'practices and community health centres. Ramesh has reviewed the different tender approaches and has concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?
Answer: B
Explanation:
In a restricted tender process, suppliers are pre-qualified through a selection process before being invited to submit tenders. This approach is suitable when there is a need to ensure that only capable suppliers are considered, often due to the complexity or high value of the procurement. It is not limited to situations with few suppliers, and direct negotiations typically occur after tender submissions, not before. Contracts are awarded based on multiple criteria, not solely on price.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.2: Tendering Procedures
NEW QUESTION # 62
What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?
Answer: B
Explanation:
The most effective way to demonstrate zero tolerance is by embedding a comprehensive anti-bribery framework: clear policies, mandatory staff and supplier training, reporting channels, and monitoring. Simply requesting suppliers' policies or avoiding known offenders is reactive, not proactive. Requiring suppliers to read policies without internal enforcement lacks substance. CIPS highlights that robust governance structures, supported by recognised frameworks such as the UK Bribery Act or FCPA, reinforce organisational credibility, protect reputation, and ensure compliance. This builds trust across supply chains and ensures ethical standards are maintained.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethics, anti-bribery and corruption frameworks.
NEW QUESTION # 63
The procurement team received an urgent request to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach?
Answer: C
Explanation:
For urgent, low-value local services, targeted sourcing (e.g., RFQs to pre-vetted suppliers) is more efficient than open advertising that can create excess, low-quality responses and slow down delivery. Responsible practice also considers proportionality and timely risk control.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - route-to-market choices; proportionality and efficiency in sourcing.
NEW QUESTION # 64
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