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L4M4 is so flexible that you can easily change the timings, types of questions, and topics for each mock exam. Pass4guide's Ethical and Responsible Sourcing practice test contains all the important questions that will appear in the actual L4M4 Exam. We design and update our CIPS L4M4 exam questions after receiving precious feedback. You can try a demo and sample of L4M4 exam questions before purchasing.

CIPS L4M4 Exam Overview:

Certification Vendor:	CIPS
Exam Name:	Ethical and Responsible Sourcing
Exam Number:	L4M4
Exam Price:	$185.69
Exam Duration:	90 minutes
Exam Format:	Multiple Selection Questions, Multiple Choice Questions (MCQ)
Available Languages:	English
Real Exam Qty:	60
Certificate Validity Period:	N/A
Passing Score:	70%
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Sample Questions:	CIPS L4M4 Sample Questions
Exam Way:	Computer-based exam at CIPS accredited exam centre
Pre Condition:	No mandatory pre-requisites, but candidates are typically working towards or enrolled in the CIPS Level 4 Diploma in Procurement and Supply.
Official Syllabus URL:	https://www.cips.org/students/level-4-diploma

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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 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 3	Understand the key processes that can be applied to the analysis of potential external suppliers:
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 (Q272-Q277):

NEW QUESTION # 272
Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?

A. the supplier has a high cost of sales
B. the supplier has a strong return on investment
C. the supplier has a lot of long-term debt
D. the supplier is extremely profitable

Answer: C

Explanation:
The correct answer is 'the supplier has a lot of long-term debt'. Gearing is a measure of how the business is being funded and looks at the ratio of debt to equity. For example if they have taken out lots of loans and mortgages, this would equate to a lot of debt which means a poor gearing ratio.
Gearing is a hot topic for the exam.

NEW QUESTION # 273
Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

A. If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs
B. A supplier who is highly profitable will be charging prices higher than the average market rate
C. The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply
D. Financial assessments provide a holistic view of a company's capability, including quality and delivery performance

Answer: C

Explanation:
Financial assessments help ensure a supplier can meet the demands of a high-value contract without disruptions. This aligns with responsible sourcing principles by promoting stable supplier relationships and reducing the risk of supply chain interruptions due to financial instability.

NEW QUESTION # 274
Added value can be objectively defined. Is this sentence TRUE?

A. Yes- added value is the same for all organisations
B. Yes- added value should be assessed along with price
C. no - added value may change from one company to another
D. no- added value is always intangible

Answer: C

Explanation:
The correct answer is 'no - added value may change from one company to another'.
Added value is very subjective. What one person thinks is excellent added value, another may not rate highly.
For example one buyer may consider a supplier having good brand reputation as added value, but another might not care.
The other no answer is incorrect because added value can be tangible or intangible. Tangible means you can touch and see it and intangible means you can't.

NEW QUESTION # 275
Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?

A. data protection
B. ethical practice
C. marketplace competition
D. product safety standards

Answer: D

Explanation:
the correct answer is 'marketplace competition'.
Ethical practice is about prohibiting corrupt and unfair practice, rather than issues of supply and demand.
Although being in a cartel is 'unethical behavior' this option doesn't fully answer the question which talks about limiting supply- this is related to marketplace competition.

NEW QUESTION # 276
The procurement team received an urgent request from the business to source quotations forpest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstance?

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

Answer: B

Explanation:
Advertising in a local newspaper for urgent services like pest control may not be the most efficient approach.
It can lead to an overwhelming number of responses, many of which may not meet the specific requirements, thereby delaying the evaluation process. For urgent needs, direct sourcing from pre-qualified suppliers or using existing frameworks is often more effective.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.2: Tendering Procedures

NEW QUESTION # 277
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