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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand the key processes that can be applied to the analysis of potential external 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	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential 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.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q242-Q247):

NEW QUESTION # 242
What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?

A. Cash flow statement (statement of cash flow) and profit and loss statement (statement of financial performance)
B. Cash flow statement (statement of cash flow) and balance sheet (statement of financial position)
C. Profit and loss account (statement of financial performance) and chairman's statement (in the annual report)
D. Balance sheet (statement of financial position) and profit and loss account (statement of financial performance)

Answer: D

Explanation:
The balance sheet and profit and loss account provide a comprehensive view of an organisation's financial health, showing assets, liabilities, and profits. These statements are essential in evaluating a supplier's financial capacity, aligning with responsible sourcing practices for financial stability.

NEW QUESTION # 243
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?

A. 0
B. 1
C. 2
D. 3

Answer: B

Explanation:
96 is the correct answer- weighted point systems should add up to 100 (as in 100%)

NEW QUESTION # 244
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÷200×150300 ÷ 200 × 150300÷200×150
B. (300#200#150)×100(300 - 200 - 150) × 100(300#200#150)×100
C. (300#150)×100(300 - 150) × 100(300#150)×100
D. 300÷150300 ÷ 150300÷150

Answer: D

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 # 245
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

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

Answer: A

Explanation:
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.

NEW QUESTION # 246
A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asksQuestionsrelating to how they will deliver the service and gives a deadline for bids to be submitted. Which document have the suppliers ben sent?

A. Invitation to Tender
B. Request for Tender
C. Request for Quotation
D. Invitation to Quote

Answer: A

Explanation:
This is an Invitation to Tender.
The only other real document listed in Request for Quotation. This is incorrect because the document asks questions relating to how they will deliver the service. This means price isn't the only factor, which is the case for a RfQ.
Request for Tender and Invitation to Quote are not real things.

NEW QUESTION # 247
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