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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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CIPS Ethical and Responsible Sourcing Sample Questions (Q77-Q82):

NEW QUESTION # 77
Bribery is considered an unethical business practice. What constitutes a bribe?

Answer: B

Explanation:
A bribe is anything that is of value to the recipient. It's commonly money, but could also be an item such as a car, or doing someone a favour such as hiring their son.


NEW QUESTION # 78
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: A,C

Explanation:
Shareholder Equity = Total Assets - Total Liabilities


NEW QUESTION # 79
What type of ratio measures a company's ability to meet short-term obligations, focusing on converting assets to cash?

Answer: A

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 # 80
AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.
How can this information help the consultant decide on the procurement strategy?

Answer: A

Explanation:
Strategic, high-value categories requiregreater management attention, as they have a significant impact on organisational performance, brand image, and risk exposure. A collaborative relationship allows for innovation, quality improvement, continuity of supply, and alignment with ethical and sustainability objectives. Low-value or non-critical categories are more suited to transactional or arm's length relationships.
Ethical and responsible sourcing requires procurement resources to be prioritised according tovalue and strategic importance, ensuring high-risk categories receive appropriate governance and supplier engagement.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - category management; strategic vs non-critical spend.


NEW QUESTION # 81
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?

Answer: B

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 # 82
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