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CIPS L4M4 Exam Syllabus Topics:

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

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CIPS Ethical and Responsible Sourcing Sample Questions (Q146-Q151):

NEW QUESTION # 146
Intra-company trading allows business units within a large enterprise to supply goods or services to another.
What are the likely objectives of intra-company trading?
Enhances production capacity utilisation
Offsets some of the fixed costs of the supplying entity
Compensates the supplying unit for the less effective technology applied Ensures internal technology always out-performs that of external suppliers

Answer: C

Explanation:
Intra-company trading aims to optimize internal resources by enhancing production capacity utilization and offsetting fixed costs. By supplying goods or services internally, organizations can achieve economies of scale and better allocate resources. However, compensating for less effective technology or ensuring superior internal technology over external suppliers are not primary objectives of intra-company trading.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.1.2: Make or buy decisions and the role of intra-company trading


NEW QUESTION # 147
Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know to calculate shareholder equity?
Select TWO.

Answer: B,C

Explanation:
Shareholder Equity = Total Assets - Total Liabilities


NEW QUESTION # 148
The balance sheet (statement of financial position) is one of the financial statements used in assessing a supplier's financial stability. The balance sheet contains information on such items as ...

Answer: C

Explanation:
A balance sheet sets out assets, liabilities and equity at a point in time. Current (short-term) liabilities such as overdrafts and tax creditors are part of it. Cash receipts (A) sit in cash-flow statements; expenses and profit (B) are in the income statement; ratios (C) are derived metrics, not items on the statement.
Reference: CIPS L4M4 Study Guide (v2): LO "Application" - supplier financial appraisal; interpreting the statement of financial position.


NEW QUESTION # 149
Which of the following factors are typically considered when assessing a supplier's financial capacity?

Answer: D

Explanation:
Profitability and asset levels indicate a supplier's financial stability and ability to meet contract demands.
Responsible sourcing practices include assessing financial capacity to reduce risk in the supply chain and ensure long-term supplier viability.


NEW QUESTION # 150
Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender. What is the benefit of incorporating standards in a specification?

Answer: D

Explanation:
Standards, such as ISO or BS norms, establish clear, universally recognised benchmarks for quality, safety, and performance. Including them in specifications reduces ambiguity, ensuring suppliers know exactly what is required and how compliance will be measured. They do not automatically guarantee lowest pricing or cover all unique buyer requirements. Instead, they improve comparability, fairness, and governance in tendering. Responsible sourcing emphasises use of recognised standards to ensure safety, ethical compliance, and consistent quality, particularly in sensitive categories like healthcare, where patient safety and continuity of service are paramount.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - specifications and standards in sourcing.


NEW QUESTION # 151
......

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