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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2
  • 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 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 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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CIPS Ethical and Responsible Sourcing Sample Questions (Q280-Q285):

NEW QUESTION # 280
Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

Answer: D

Explanation:
Incorporating ESG requirements into contractual terms is a valid and increasingly common approach. It ensures that suppliers are contractually obligated to adhere to specific environmental, social, and governance standards, aligning with the buyer's commitment to responsible sourcing. This practice not only promotes ethical behavior but also mitigates risks associated with non-compliance, such as reputational damage or legal penalties.
Exact Extract from Study Guide:
"This unit focuses on responsible procurement practices, ensuring that sourcing decisions align with legal, environmental, and social governance (ESG) principles."


NEW QUESTION # 281
The procurement team received an urgent request to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach?

Answer: B

Explanation:
For urgent, low-value local services, targeted sourcing (e.g., RFQs to pre-vetted suppliers) is more efficient than open advertising that can create excess, low-quality responses and slow down delivery. Responsible practice also considers proportionality and timely risk control.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - route-to-market choices; proportionality and efficiency in sourcing.


NEW QUESTION # 282
Which of the following is not a type of fraud that procurement professionals should be vigilant for?

Answer: A

Explanation:
Coercion is not a type of fraud. The other three are.


NEW QUESTION # 283
Phishing is a type of fraud that is commonly associated with which industry?

Answer: D

Explanation:
Phishing is a type of fraud where IT users are sent a link (usually by email) which exposes them to activities of expert cybercriminals.


NEW QUESTION # 284
In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?

Answer: B

Explanation:
"Meet current liabilities" is a posh way of saying "can you pay your bills". You're therefore looking for a liquidity ratio- a ratio that looks at assets vs liabilities (i.e. money in the bank vs money owed out). The Acid Test is a liquidity ratio. It's sometimes called the 'quick ratio'. Both terms come up on the exam. The other options are financial ratios but aren't for liquidity.


NEW QUESTION # 285
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