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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
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
  • 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.
Topic 4
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q26-Q31):

NEW QUESTION # 26
Commodities can be traded on a stock exchange and are generally divided into one of four categories. Which of the following is not one of these four categories?

Answer: A

Explanation:
Plastic is not a commodity. A commodity is something that is naturally occurring and plastic is manufactured.
The other category of commodity is agriculture.


NEW QUESTION # 27
Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities

Answer: B,D

Explanation:
Gearing measures how much of an organisation's long-term funding is made up of long term debt and loans.
Therefore the correct answers are 'shareholder equity' and 'long term debt'.
There are many question about financial ratios that can come up on the exam. If you're unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I'm not associated with the makers of this video but think they're really good at explaining things to beginners) Gearing Ratio explained (youtube.com)


NEW QUESTION # 28
When might a company send a Request for Information (RFI) instead of a Request for Quotation (RFQ)?
(Select TWO)

Answer: B,D,E

Explanation:
An RFI is an exploratory tool, used to gather information before specifications or tendering. It is appropriate for obtaining indicative pricing (A), understanding the range of products/services (C), and confirming certifications like environmental or quality standards (D). RFQs, by contrast, request firm pricing based on defined specifications. RFIs are not used to renegotiate existing contracts (E) or agree payment terms (B).
Responsible sourcing emphasises using RFIs to identify suppliers aligned with ethical, environmental, and operational expectations before moving to a formal competitive process.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - RFI, RFQ, and ITT differences.


NEW QUESTION # 29
A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?

Answer: D

Explanation:
A Bill of Exchange is a payment instruction - it says who will pay whom and when.
Bill of Exchange Definition: Examples and How It Works (investopedia.com)


NEW QUESTION # 30
Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?

Answer: A

Explanation:
energy, agriculture, metals, livestock are the four trading categories on the stock exchange. Some-times there's a 5th category added which is 'environmental credits'. This is a fairly new thing and you don't need to know anything about this for this exam.
Question no commodities will mainly centre around characteristics of commodities and factors that affect pricing.
Commodities are discussed much more in detail in L5M4. At level 4 you just need a basic overview.


NEW QUESTION # 31
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