Free PDF L4M4 - Ethical and Responsible Sourcing–The Best Latest Exam Questions Vce

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
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
  • 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 the key processes that can be applied to the analysis of potential external suppliers:
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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Free PDF Quiz 2026 CIPS L4M4 Useful Latest Exam Questions Vce

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CIPS Ethical and Responsible Sourcing Sample Questions (Q169-Q174):

NEW QUESTION # 169
Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?

Answer: A

Explanation:
the right to change nationality is not included in the UN Declaration of Human Rights. There are 30 in total but you're not expected to know them all. You should know the big ones though which are; life, security, belief, equal treatment, free speech and expression. A summary can be found here: Universal Declaration of Human Rights | United Nations


NEW QUESTION # 170
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?

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 # 171
A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year's purchase orders and has been asked to confirm the month of order placement. The buyer has found three trends:
* In January and April, the supplier's local currency is stronger
* November typically has the lowest demand
* May typically has the highest demand
Which month should the buyer plan to place the purchase order?

Answer: A

Explanation:
Ordering in November, when demand is lowest, may allow the buyer to secure better pricing and availability, aligning with responsible sourcing by optimizing purchase timing to achieve cost savings and reliable supply.


NEW QUESTION # 172
Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?

Answer: B

Explanation:
tactical is the correct answer; items that are short-term or low value are considered tactical.
Strategic sourcing is long term and high value.
Outsourcing is moving a key business function to an external company.
Insourcing is bringing a previously outsourced part of the company back in-house.


NEW QUESTION # 173
Which of the following types of data do credit rating agencies include in their assessment of organisations?
(Select TWO)

Answer: A,E

Explanation:
Credit rating agencies assess an organisation's financial stability and risk of default. Key data includes financial obligations (such as outstanding loans, debt levels, repayment schedules) and payment history (how reliably the firm pays creditors and suppliers). These indicators show liquidity, cash flow reliability, and debt servicing ability. Factors such as "value for money" or "ecosystems" are irrelevant in a financial risk context.
Responsible sourcing requires buyers to consider supplier financial resilience, as instability could disrupt supply chains, increase risk exposure, and lead to reputational damage. Agencies like Moody's, S&P, and Fitch provide independent assessments that complement in-house financial analysis.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial appraisal tools and supplier risk assessment.


NEW QUESTION # 174
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