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CIPS L4M4 Exam Syllabus Topics:

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

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CIPS Ethical and Responsible Sourcing Sample Questions (Q206-Q211):

NEW QUESTION # 206
The gross profit of a company can be calculated by using a simple formula. What is this?

A. debt owed - total sales
B. total revenue - cost of sales
C. cost of sales - fixed assets
D. assets - liabilities

Answer: B

Explanation:
gross profit = total revenue - cost of sales.
Learn all you can about financial ratios and financial statements for the exam- it's a very common topic

NEW QUESTION # 207
Tendering is a more formal and regimented process than sending out requests for quotations. Which of the following are services that are often put out to tender? Select THREE.

A. provision of raw materials
B. consultancy
C. office supplies
D. security
E. cleaning

Answer: A,B,E

Explanation:
security, consultancy and cleaning are services which are often tendered as they tend to be high value and complex opportunities.
Office supplies and raw materials have less variables so you could use a RFQ for these instead.
A hint for this is also the word services. Security, consultancy and cleaning are services. Raw Materials and Office Supplies are goods.

NEW QUESTION # 208
A company's balance sheet will show you which of the following?

A. revenue, profit and expenses
B. profit, loss and assets
C. equity, assets and liabilities
D. cash coming in and out of the business

Answer: C

Explanation:
a balance sheet shows 'equity, assets and liabilities'. The other financial statements you need to know for this exam are cash flow statements and and income statements.
If you're not familiar with these three I strongly recommend you do some further reading on this before the exam if you can. This is helpful: How the 3 Financial Statements are Linked Together - Step by Step (corporatefinanceinstitute.com)

NEW QUESTION # 209
Which of the following is considered as part of ESG?

A. liquidity, gearing and profitability
B. economic and social governance
C. market conditions and product lifecycle
D. bribery, corruption and the environment

Answer: C

Explanation:
The correct answer is bribery, corruption and the environment.
ESG stands for environmental and social governance. It's the new buzzword for CIPS and is basically everything to do with ethical procurement- so areas such as bribery and corruption are included as well as the environment.
Option 4 is incorrect as economic doesn't come into it.

NEW QUESTION # 210
The bill of lading is one of the main documents in sea freight. Which of the following statements represent its uses? (Select TWO)

A. It provides evidence of the country of origin of the goods
B. It provides evidence that the goods are fully insured in transit
C. It provides evidence of the contract of carriage for the goods
D. It provides evidence of the title of ownership of the goods
E. It provides evidence guaranteeing the use of Incoterms

Answer: C,D

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 # 211
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