CIPS L4M4 Detailed Study Plan, Reliable L4M4 Exam Preparation

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CIPS L4M4 Exam Overview:

Certification Vendor:	CIPS
Exam Name:	Ethical and Responsible Sourcing
Exam Number:	L4M4
Exam Price:	$185.69
Exam Format:	Multiple Choice Questions (MCQ), Multiple Selection Questions
Exam Duration:	90 minutes
Available Languages:	English
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Certificate Validity Period:	N/A
Real Exam Qty:	60
Passing Score:	70%
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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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	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 2	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.
Topic 3	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 4	Understand the key processes that can be applied to the analysis of potential external suppliers:

CIPS Ethical and Responsible Sourcing Sample Questions (Q138-Q143):

NEW QUESTION # 138
A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance. Which Incoterm has been agreed?

A. EXW - Ex Works
B. FCA - Free Carrier
C. CIP - Carriage and Insurance Paid
D. FOB - Free on Board

Answer: A

Explanation:
Under the EXW (Ex Works) Incoterm, the buyer assumes responsibility for transportation and export clearance from the seller's premises. This term aligns with cost-saving measures and the buyer's internal capabilities for logistics, supporting efficient and responsible sourcing.

NEW QUESTION # 139
The bill of lading is one of the main documents associated with sea freight within international sourcing.
Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

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

Answer: A,C

Explanation:
The bill of lading serves as both a receipt of goods and a document of title, which means it confirms the contract of carriage and can transfer ownership. Responsible sourcing in international trade requires precise documentation, which is why the bill of lading is critical in verifying both carriage and title.

NEW QUESTION # 140
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?

A. the amount of money held in the company's bank account
B. the amount of money from retained earnings
C. the owners' residual claim once all debt has been paid
D. the profit from sales once tax has been deducted

Answer: C

Explanation:
shareholder equity = the owner/s of the organisation's residual claim once all debts have been paid. What Is Shareholder Equity (SE) and How Is It Calculated? (investopedia.com)

NEW QUESTION # 141
Which of the following is a UK legislation concerning product safety?

A. GDPR 2018
B. Competition Act 1998
C. Consumer Rights Act 2015
D. Enterprise Act 2002

Answer: C

Explanation:
The Consumer Rights Act 2015 is about product safety and making sure products sold on the market are fit for purpose. It gives buyers rights and protections. The Consumer Rights Act 2015 - Citizens Advice There's a long list of legislation on p.105. I wouldn't worry about memorizing them all but just have an idea of what legislation relates to what area. E.g. GDPR is about Data Protection and the Com-petitions Act is about Marketplace competition. Most of them are quite obvious from the name.

NEW QUESTION # 142
Which of the following is not a indices that measures economic data?

A. GDP
B. PPI
C. ISO
D. CPI

Answer: C

Explanation:
ISO isn't an indices- it stands for 'International Labour Association'.
The others are all indices that measure economic data; consumer price index, producer price index and gross domestic product.

NEW QUESTION # 143
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