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CIPS L4M4 Exam Syllabus Topics:

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

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Quiz L4M4 - Ethical and Responsible Sourcing Accurate Test Assessment

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CIPS Ethical and Responsible Sourcing Sample Questions (Q279-Q284):

NEW QUESTION # 279
Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier's liquidity? Select TWO.

A. current liabilities
B. shareholder's equity
C. current assets
D. long-term debt

Answer: A,C

Explanation:
The correct answer is current assets and current liabilities. There are manyQuestionsabout financial ratios on the exam.
If you're unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I'm not associated with the makers of this video but think it's a great way to explain liquidity) Liquidity ratios (youtube.com) You can be asked to work out liquidity in the exam. If you are asked this, the numbers will be very simple to the point you may be able to do the sums in your head. There is also a calculator on the test app you can use.

NEW QUESTION # 280
When assessing social responsibility elements of a supplier's proposal, what type of supporting evidence could a supplier provide?

A. Evidence of compliance with fair trade standards
B. Financial statements detailing profit and loss accounts
C. Results of a customer service survey on delivery performance
D. Quality control reports documenting quality checks in the manufacturing process

Answer: A

Explanation:
Compliance with fair trade standards demonstrates the supplier's commitment to social responsibility, including fair wages and ethical working conditions. This aligns with responsible sourcing practices, ensuring that suppliers maintain ethical labor standards, as advocated in the principles of ethical sourcing.

NEW QUESTION # 281
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. Earnings per share
B. Dividend per share
C. Profitability ratio
D. Liquidity ratio

Answer: D

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 # 282
Avram is a buyer for a private sector electrical components company and is promoting the advantages of competitive bidding.
When is competitive bidding appropriate?
Select TWO that apply.

A. When price is not the most important award criterion
B. When changes to the specification are likely as the contract progresses
C. When there is sufficient time to conduct the procedure
D. When it is impossible to estimate production costs accurately
E. When there are adequate numbers of potential suppliers in the market

Answer: C,E

Explanation:
Competitive bidding is most appropriate when there is asufficient number of capable suppliersto create genuine competition and whenadequate timeis available to conduct the process fairly and transparently.
These conditions allow suppliers to prepare robust bids and enable buyers to evaluate proposals properly.
Competitive bidding is less suitable where specifications are unstable or urgent decisions are required. Ethical and responsible sourcing emphasises proportionality and fairness, ensuring competition is used where it adds value and does not compromise delivery, governance, or stakeholder needs.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - competitive tendering; appropriateness of sourcing routes.

NEW QUESTION # 283
Which award criteria can be applied when sourcing requirements from external suppliers?

A. Understanding of supplier operations
B. Delivery promises of goods
C. Price and total life-cycle costs
D. Plans and manpower numbers

Answer: C

Explanation:
Responsible award decisions should consider price and total life-cycle cost (TCO) to capture acquisition, operation, maintenance, and end-of-life costs, aligning with sustainability. Other items may inform due diligence but are not, by themselves, robust award criteria without being translated into measurable value and risk outcomes.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - evaluation and award; TCO and sustainability in criteria setting.

NEW QUESTION # 284
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