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| Certification Vendor: | CIPS (Chartered Institute of Procurement & Supply) |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Exam Format: | Computer-based exam, Scenario-based questions, Multiple choice questions |
| Exam Price: | Varies by region and assessment center (typically ~£70–£120 per module) |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Certificate Validity Period: | No fixed expiry (qualification remains valid once achieved) |
| Passing Score: | 50% |
| Real Exam Qty: | Approximately 60 questions |
| Exam Duration: | 120 minutes |
| Available Languages: | English |
| Recommended Training: | CIPS Official Learning Resources CIPS Study Hub |
| Exam Registration: | CIPS Exams and Assessment Information CIPS Official Qualifications Page |
| 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 |
>> L4M4 Actual Test Answers <<
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| Topic | Details |
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| Topic 1 |
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| Topic 2 |
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| Topic 3 |
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| Topic 4 |
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NEW QUESTION # 185
The bill of lading is one of the main documents in sea freight. Which of the following statements represent its uses? (Select TWO)
Answer: D,E
Explanation:
A bill of lading serves as:
* Evidence of the contract of carriage between shipper and carrier.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - international trade documentation, bills of lading.
NEW QUESTION # 186
Procurement professionals should never appoint suppliers with a low credit rating. Is this statement true?
Answer: C
Explanation:
A credit rating is a useful but limited indicator of financial health. It reflects a supplier's likelihood of meeting short-term obligations but may not capture context such as investment stage, government backing, or corrective strategies. Responsible sourcing requires holistic assessments, including liquidity ratios, profitability, gearing, and qualitative factors like market position and management capability. Automatically rejecting suppliers with lower scores can unnecessarily restrict competition or exclude SMEs in emerging markets. Instead, CIPS advocates proportional risk assessment and, where necessary, mitigation measures such as shorter contracts, phased payments, or guarantees.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial appraisal tools and their limitations.
NEW QUESTION # 187
One approach to managing supply risk is by having multiple suppliers of a given product or category of requirements. This approach has both advantages and disadvantages. Which of the following conditions would be a reason for multiple sourcing arrangements?
Answer: B
Explanation:
Multiple sourcing is most effective for strategically important, high-value requirements such as raw materials.
These are continuous, large-volume needs where supply disruptions can be costly and damaging. By using more than one supplier, buyers reduce dependency risks, improve resilience, and increase competitive leverage. One-off requirements like machinery (A) don't benefit from multiple sourcing, while options B and D describe disadvantages rather than reasons for adopting the approach. Responsible sourcing promotes balancing cost, risk, and resilience - and multiple sourcing is a key strategy for critical, ongoing supply categories.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing strategies and risk management.
NEW QUESTION # 188
Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?
Answer: A
Explanation:
"yes- ethics and sustainability form part of 'value for money' " is the correct answer.
There are several factors that represent value for money and these are listed on p.3. These include; price, delivery, quality, ethics, sustainability and availability.
NEW QUESTION # 189
A buyer is considering trading with a new supplier who is based in a country they have not traded with before.
The buyer needs to understand the anti-bribery risks in the country. Which of the following sources of information would be useful in this regard? Select TWO that apply.
Answer: B,C
Explanation:
Transparency International provides the Corruption Perceptions Index, which ranks countries based on perceived levels of public sector corruption, offering valuable insights into the anti-bribery risks of a specific country. Additionally, understanding the local anti-corruption legislation helps the buyer assess the legal framework and enforcement mechanisms in place, which is crucial when entering into contracts with suppliers in new jurisdictions.
Exact Extract from Study Guide:
"Transparency International's Corruption Perceptions Index is a key resource for assessing the risk of corruption in different countries. Local anti-corruption legislation provides the legal context within which suppliers operate, and understanding these laws is essential for ensuring compliance and ethical sourcing."
NEW QUESTION # 190
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