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>> CIPS L4M4 Sample Questions Answers <<
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NEW QUESTION # 128
Which of the following are examples of secondary data? Select TWO
Answer: A,E
Explanation:
economic indices and comparison websites are secondary sources of data. The other three are examples of primary sources of data.
Primary= you get the data yourself
Secondary = you find the data from somewhere else
NEW QUESTION # 129
FTSE100 and Sensex are examples of what?
Answer: D
Explanation:
they are stock markets.
What is the FTSE 100 Index? Complete Beginner's Guide (moneycheck.com)
BSE SENSEX - Wikipedia
NEW QUESTION # 130
What type of ratio measures a company's ability to meet short-term obligations, focusing on converting assets to cash?
Answer: D
Explanation:
Liquidity ratios (e.g., current ratio, quick ratio) measure whether a company can cover short-term debts with liquid assets like cash, receivables, and inventory. These ratios provide insight into a supplier's ability to remain operational without defaulting on immediate obligations. Profitability ratios show long-term returns; EPS and dividends per share apply to shareholders, not supply continuity. Responsible sourcing emphasises liquidity as a key measure of supplier stability, as poor liquidity can cause supply interruptions or business failure, jeopardising contracts and buyer obligations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial appraisal, liquidity assessment.
NEW QUESTION # 131
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?
Answer: A
NEW QUESTION # 132
A public sector buyer ran a tender with eight bidders, all meeting minimum standards. How is the award decision made?
Answer: C
Explanation:
Public sector procurement is bound by transparency, fairness, and value-for-money principles. Once minimum thresholds are met, evaluation must be based on pre-published weighted criteria (often combining price, quality, sustainability, and social value). Sole reliance on price or location would breach fairness and equal treatment obligations. Weighted scoring ensures that decisions are objective, defendable, and aligned with responsible sourcing principles. This also allows ethical and sustainability considerations to be formally scored alongside commercial ones, reinforcing good governance.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - evaluation in public sector, weighted award criteria.
NEW QUESTION # 133
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