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| Certification Vendor: | CIPS (Chartered Institute of Procurement & Supply) |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Available Languages: | English |
| Passing Score: | 50% |
| Exam Price: | Varies by region and assessment center (typically ~£70–£120 per module) |
| Exam Format: | Multiple choice questions, Computer-based exam, Scenario-based questions |
| Real Exam Qty: | Approximately 60 questions |
| Exam Duration: | 120 minutes |
| Certificate Validity Period: | No fixed expiry (qualification remains valid once achieved) |
| Recommended Training: | CIPS Official Learning Resources CIPS Study Hub |
| Exam Registration: | CIPS Exams and Assessment Information CIPS Official Qualifications Page |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based examination delivered via authorized test centers (e.g., Pearson VUE) and/or remote proctored options depending on region. |
| Pre Condition: | No formal prerequisites, but typically taken as part of CIPS Level 4 Diploma progression. Level 3 Diploma knowledge is recommended. |
| Official Syllabus URL: | https://www.cips.org |
>> L4M4 Valid Dumps Questions <<
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NEW QUESTION # 70
What type of ratio measures a company's ability to meet short-term obligations, focusing on converting assets to cash?
Answer: B
Explanation:
Liquidity ratios (e.g., current ratio, quick ratio) measure whether a company can cover short-term debts with liquid assets like cash, receivables, and inventory. These ratios provide insight into a supplier's ability to remain operational without defaulting on immediate obligations. Profitability ratios show long-term returns; EPS and dividends per share apply to shareholders, not supply continuity. Responsible sourcing emphasises liquidity as a key measure of supplier stability, as poor liquidity can cause supply interruptions or business failure, jeopardising contracts and buyer obligations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial appraisal, liquidity assessment.
NEW QUESTION # 71
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.
Answer: B,D
Explanation:
ethics and environment are not a 'right of procurement'.
The 5 rights are price, quality, quantity, time and place.
NEW QUESTION # 72
Which of the following is a measure of liquidity?
Answer: C
Explanation:
Liquidity measures a company's ability to meet short-term obligations. The current ratio = current assets ÷ current liabilities, indicating whether the business can cover debts due within one year. Ratios above 1 suggest healthy liquidity, though excessively high ratios may show underutilised cash. Gearing reflects debt-to-equity (solvency); ROI assesses profitability; total asset turnover measures efficiency. Responsible sourcing requires buyers to evaluate liquidity to ensure suppliers have the working capital to maintain operations and deliver reliably. Poor liquidity is a red flag for potential supply disruption.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial ratios and their interpretation.
NEW QUESTION # 73
Which financial statement would be used for analysing an organisation's assets?
Answer: D
Explanation:
Thebalance sheet, also known as the statement of financial position, provides a snapshot of an organisation's assets, liabilities, and equityat a specific point in time. It is the primary financial statement used to analyse what an organisation owns and owes. The profit and loss account focuses on income and expenses, while the cash flow statement shows cash movements. Credit rating reports summarise financial risk but are not financial statements. Ethical and responsible sourcing requires procurement professionals to understand balance sheets to assess supplier stability and reduce supply continuity risks.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - financial statements and supplier assessment.
NEW QUESTION # 74
Which of the following is true for CIPS members who sign and comply with the CIPS Code of Conduct?
Members can ...
* gain an understanding of ethical and successful business operations
* acquire automatic entitlement to government sponsorship
* enjoy continued CIPS membership and access to resources
* bypass the need to comply with other voluntary or legal codes
Answer: B
Explanation:
CIPS members who adhere to the CIPS Code of Conduct gain insight into ethical business practices and retain their membership and access to CIPS resources. This commitment to ethical standards supports responsible sourcing by fostering a community of professionals who value integrity and best practices.
NEW QUESTION # 75
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