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CIPS L4M4 Exam Syllabus Topics:

Section	Objectives
Understand compliance issues when sourcing from suppliers	- Sustainability and environmental considerations - Codes of conduct and ethical standards - Anti-bribery and anti-corruption measures - Modern slavery and human rights in supply chains - Ethical sourcing and corporate social responsibility (CSR) - Regulatory and legal compliance - Global sourcing considerations and Incoterms
Understand options for sourcing of requirements from suppliers	- Single, dual and multiple sourcing - Insourcing vs outsourcing decisions - Sourcing strategies and approaches - Factors influencing sourcing decisions
Understand the key processes that can be applied to the analysis of potential external suppliers	- Financial analysis of suppliers - Supplier appraisal and evaluation methods - Supplier audits and due diligence - Risk assessment in supplier selection - Use of Request for Information (RFI), Request for Proposal (RFP) and Request for Quotation (RFQ)

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Latest Ethical and Responsible Sourcing free dumps & L4M4 passleader braindumps

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CIPS Ethical and Responsible Sourcing Sample Questions (Q51-Q56):

NEW QUESTION # 51
What are the risks of outsourcing?
* Loss of control of project
* Loss of assets
* Loss of future business opportunities
* Loss of private information

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

Answer: A

Explanation:
Loss of control and loss of private information are significant risks in outsourcing. Responsible sourcing involves mitigating these risks by setting clear agreements, monitoring, and safeguarding sensitive information to maintain control over outsourced activities.

NEW QUESTION # 52
The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

A. Yes, they are popular because all risks are avoided
B. No, they can reduce risks but will not eliminate them
C. Yes, they eliminate all the risks of buying from an overseas supplier
D. No, they will only provide assurance about the quality of goods

Answer: B

Explanation:
Incoterms clarify responsibilities between buyers and sellers, reducing certain risks but not eliminating them entirely. Responsible sourcing requires recognising that Incoterms are only part of risk management in international trade, and other factors, such as supplier reliability and quality, must be considered.

NEW QUESTION # 53
What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

A. Profitability ratio
B. Earnings per share
C. Liquidity ratio
D. Dividend per share

Answer: C

Explanation:
Liquidity ratios assess a company's capacity to meet its short-term obligations using its most liquid assets.
These ratios, such as the current ratio and quick ratio, provide insight into the financial health of a company by indicating whether it has sufficient resources to pay off its immediate liabilities without raising external capital.
Exact Extract from Study Guide:
"Liquidity ratios: # Typical ratios: current ratio, quick ratio, cash flow ratio, etc. # Formulae of those ratios # Implications of liquidity ratios

NEW QUESTION # 54
A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. There are many factors that need to be considered before arriving at such a decision. Which of the following factors is likely to justify the decision to make the requirements internally?

A. The availability of in-house competencies and capacity to carry out the production
B. External sourcing involves cumbersome tendering procedures
C. External suppliers are likely to be overcharging
D. The other suppliers are using older technology

Answer: A

Explanation:
The decision to make a product internally rather than sourcing it externally is influenced by several factors.
One of the primary considerations is the availability of in-house competencies and capacity. If an organisation possesses the necessary skills, technology, and resources to produce the required goods or services efficiently, it may opt for internal production to maintain control over quality, reduce costs, and protect proprietary information.
Exact Extract from Study Guide:
"Make or buy decisions take into account: product/service is core, the organisation's capacity to make, current market (cost saving with economy of scales and/or logistics), amount of competition."

NEW QUESTION # 55
Tracey Collum is a procurement professional and married to Nick Collum.
Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids.
After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems.
Nick has asked Tracey to award the contract to Supplier X. What should Tracey do?

A. Award the contract to Supplier X because Tracey can ask for a better price because they are married
B. Remove Supplier X from the tender due to a conflict of interest and continue with the tender
C. Ask to be removed from the tender due to a conflict of interest and complete a conflict of interest form
D. Award the contract to Supplier X because Nick will be promoted if Supplier X wins the contract

Answer: C

Explanation:
To maintain integrity and avoid conflicts of interest, Tracey should declare the conflict and remove herself from the tender process. Ethical sourcing practices emphasize transparency and fairness, which prevent potential biases and maintain trust within procurement processes.

NEW QUESTION # 56
......

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