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CIPS L4M4 Exam Overview:

Certification Vendor:CIPS (Chartered Institute of Procurement & Supply)
Exam Name:Ethical and Responsible Sourcing
Exam Number:L4M4
Exam Price:Varies by region and assessment center (typically ~£70–£120 per module)
Exam Format:Computer-based exam, Multiple choice questions, Scenario-based questions
Related Certifications:CIPS Level 4 Diploma in Procurement and Supply
Available Languages:English
Real Exam Qty:Approximately 60 questions
Exam Duration:120 minutes
Certificate Validity Period:No fixed expiry (qualification remains valid once achieved)
Passing Score:50%
Recommended Training:CIPS Study Hub
CIPS Official Learning Resources
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

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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
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
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.

CIPS Ethical and Responsible Sourcing Sample Questions (Q159-Q164):

NEW QUESTION # 159
Amnesty International, Oxfam and CIPS are examples of what type of organisation?

Answer: B

Explanation:
These are 'not-for-profit' organisations. You don't need to know much on not-for-profit procurement for this exam. Just that procurement can be regulated in this sector by bodies such as Charities Commission.


NEW QUESTION # 160
What might a buyer encounter if the supplier's government has introduced a protectionist measure?

Answer: B

Explanation:
Protectionist measures are policies implemented by governments to protect domestic industries from foreign competition. One common protectionist measure is the imposition of import duties, which are taxes levied on imported goods. These duties make imported products more expensive, encouraging consumers to buy domestic products instead. Buyers sourcing internationally must be aware of such duties as they directly impact the total cost of procurement.
Exact Extract from Study Guide:
"Furthermore, there are many potential cost considerations when importing goods which can include taxes & duties or storage costs. By understanding all key legal, regulatory and organizational requirements prior to sourcing from international suppliers, businesses can ensure compliance while also maximizing cost savings."


NEW QUESTION # 161
A company has a requirement for an item that has been identified as strategic on the positioning model. The company needs to invite competitive tenders and make sure the selected supplier of this item is in a good financial position. What should the company ask the suppliers to send to show that their current assets cover their current liabilities?

Answer: B

Explanation:
The acid test, also known as the quick ratio, measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory. It is a stringent indicator of short-term financial health. By requesting this ratio, the company can assess whether a potential supplier has sufficient liquidity to meet its obligations, which is crucial when procuring strategic items.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3: Financial Appraisal of Suppliers


NEW QUESTION # 162
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms. What is the purpose of these rules?

Answer: B

Explanation:
Incoterms describe the point at which an item is considered 'delivered' and explains who has the risk of what during the transport of the goods.


NEW QUESTION # 163
A multi-national company is seeking to negotiate an agreement with a global supplier for the delivery of fresh produce.
At which stage of the procurement process should the buyer consider Incoterms?

Answer: A

Explanation:
Incoterms define the allocation ofcosts, risks, and responsibilitiesbetween buyer and seller in international trade. They must be agreedbefore the contract is finalised, as they form a fundamental part of the contractual terms. Considering Incoterms early ensures clarity on delivery obligations, customs responsibilities, insurance, and transport costs. Selecting Incoterms after contract agreement or at order placement would create ambiguity and risk disputes. Ethical and responsible sourcing requires clear contractual definitions to prevent misunderstandings, ensure compliance, and fairly allocate risk in global supply chains.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - Incoterms and international contracting.


NEW QUESTION # 164
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