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CIPS L4M4 Exam Overview:

Certification Vendor:	CIPS
Exam Name:	Ethical and Responsible Sourcing
Exam Number:	L4M4
Passing Score:	70%
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Real Exam Qty:	60
Available Languages:	English
Certificate Validity Period:	N/A
Exam Price:	$185.69
Exam Duration:	90 minutes
Exam Format:	Multiple Selection Questions, Multiple Choice Questions (MCQ)
Sample Questions:	CIPS L4M4 Sample Questions
Exam Way:	Computer-based exam at CIPS accredited exam centre
Pre Condition:	No mandatory pre-requisites, but candidates are typically working towards or enrolled in the CIPS Level 4 Diploma in Procurement and Supply.
Official Syllabus URL:	https://www.cips.org/students/level-4-diploma

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L4M4 Fragenkatalog - L4M4 Buch

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CIPS L4M4 Prüfungsplan:

Thema	Einzelheiten
Thema 1	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.
Thema 2	Understand the key processes that can be applied to the analysis of potential external suppliers:
Thema 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.
Thema 4	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

CIPS Ethical and Responsible Sourcing L4M4 Prüfungsfragen mit Lösungen (Q57-Q62):

57. Frage
Which of the following would be considered a strategic sourcing activity?

A. a factory ordering a new machine
B. a restaurant ordering plastic cups
C. a bakery ordering eggs
D. an office ordering copier paper

Antwort: A

Begründung:
a factory ordering a new machine is the correct answer.
Strategic sourcing is for high value, high risk items. The other options given are tactical sourcing as they are low value (eggs, paper and plastic cups).
See p.3 for the differences between tactical and strategic sourcing

58. Frage
When might a company send a Request for Information (RFI) instead of a Request for Quotation (RFQ)?
(Select TWO)

A. To determine whether the supplier can fulfil a purchase order already placed
B. To obtain indicative prices that could be offered for a range of required products
C. To negotiate the payment terms detailed in the terms and conditions of sale
D. To ask for details of the product or range of services that the supplier has to offer
E. To establish the details of environmental and quality certificates that the supplier may have

Antwort: B,D,E

Begründung:
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.

59. Frage
Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know tocalculate shareholder equity? Select TWO.

A. net profit
B. net income
C. total assets
D. total liabilities

Antwort: C,D

Begründung:
Shareholder Equity = Total Assets - Total Liabilities

60. Frage
Which of the following characteristics are likely to be required within sourcing processes undertaken in the public sector?
* An emphasis on long-term supplier relationships where possible
* Maintaining service levels within value and cost parameters
* All dealings between buyers and suppliers are kept confidential
* A competitive tendering process is usually encouraged

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

Antwort: D

Begründung:
Public sector sourcing prioritises maintaining service levels within budget constraints and often mandates competitive tendering to promote transparency and fairness. These principles align with ethical sourcing practices, ensuring responsible expenditure and fair competition among suppliers.

61. Frage
Ramesh is an IT category manager within the UK's NHS and is responsible for the procurement of a new high-value network system. Ramesh has concluded that the use of a restricted tender is the most appropriate.
Which of the following statements is true for a restricted tender process?

A. The contract will be awarded strictly on pricing criteria
B. Direct negotiations occur prior to suppliers submitting their offer
C. Suppliers responding to the tender are pre-qualified
D. It is only relevant when there are few suppliers in the market

Antwort: C

Begründung:
Restricted tendering is a two-stage process: first, a pre-qualification stage to ensure only capable, compliant suppliers are invited; second, the issue of the ITT to that shortlist. This method is appropriate when requirements are complex, high-value, or where assurance of supplier competence is essential. It is not based solely on price and does not rely on limited supplier numbers but on filtering through qualification. This balances transparency and efficiency, avoiding wasteful evaluation of unsuitable suppliers while still maintaining competitive tension. CIPS L4M4 highlights that restricted tendering strengthens governance, improves efficiency, and ensures due diligence in supplier selection.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - tendering methods (open, restricted, negotiated).

62. Frage
......

L4M4 Fragenkatalog: https://www.zertpruefung.ch/L4M4_exam.html

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