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L4M4 Ethical and Responsible Sourcing is now Stable and With Pass Result | Test Your Knowledge for Free

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Ethical and Responsible Sourcing

Last Update 19 hours ago
Total Questions : 301

Dive into our fully updated and stable L4M4 practice test platform, featuring all the latest CIPS Level 4 Diploma in Procurement and Supply exam questions added this week. Our preparation tool is more than just a CIPS study aid; it's a strategic advantage.

Our free CIPS Level 4 Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L4M4. Use this test to pinpoint which areas you need to focus your study on.

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Question # 11

Other than price, what should a buyer consider when evaluating supplier quotations?

Lead times

Add-on costs

Wastage rates

Past performance

Options:

A.  

1, 2, and 4 only

B.  

1, 2, and 3 only

C.  

2, 3, and 4 only

D.  

1, 3, and 4 only

Discussion 0
Question # 12

Sourcing can be tactical or strategic. Which of the following might be classified withinstrategic sourcing?

    Stakeholder meetings to review product design modifications

    Open tendering to provide new office chairs

    Evaluating quotations for the latest accounting software

    Regular stationery orders for the managing director’s office

Options:

A.  

1 and 2 only

B.  

1 and 3 only

C.  

2 and 3 only

D.  

2 and 4 only

Discussion 0
Question # 13

Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector. Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?

Options:

A.  

FAS

B.  

EXW

C.  

DPU

D.  

DDP

Discussion 0
Question # 14

In which instance would multiple sourcing be the most applicable approach?

Options:

A.  

Sourcing for the provision of a service, where close relationship management is required

B.  

Sourcing a specialised, unique component where the supplier's knowledge is key

C.  

Sourcing for high-cost, strategically important components

D.  

Sourcing for components required at short notice

Discussion 0
Question # 15

A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market. Which of the following is a benefit of using a full competitive tendering process for this new contract?

Options:

A.  

All suppliers will know how much the others have bid

B.  

Only the procurement manager can decide who wins

C.  

All bidders will be treated equally

D.  

It is a quick and informal process

Discussion 0
Question # 16

Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?

Options:

A.  

duties

B.  

profits

C.  

tariffs

D.  

laws

Discussion 0
Question # 17

If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

Options:

A.  

Only work with known suppliers

B.  

Complete Due-Diligence on all new suppliers

C.  

Only work with suppliers who have a published Anti-Slavery policy

D.  

Complete formal tenders to find the best suppliers

Discussion 0
Question # 18

Which of the following are key areas of regulations that govern organisations in responsible procurement and supply?

Options:

A.  

Competitive pricing, unsecured business loans and threats of new entrants

B.  

Ethical practice, data protection and marketplace competition

C.  

Company culture, product branding and staff uniforms

D.  

Digitisation, artificial intelligence and innovations

Discussion 0
Question # 19

Philip is a procurement manager at XYZ Company which imports raw materials from abroad. Sup-pliers provide quotes to Philip in their local currency. Is this the best way to reduce the risk to XYZ Company of currency fluctuations?

Options:

A.  

yes- this means the price won't go up or down

B.  

yes- this puts the risk on the supplier

C.  

no- quoting in the supplier's currency increases the risk for the buyer

D.  

no- quoting in the supplier's currency does not affect the risk to the buying organisation

Discussion 0
Question # 20

The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

Options:

A.  

No, they can reduce risks but will not eliminate them

B.  

No, they will only provide assurance about the quality of goods

C.  

Yes, they are popular because all risks are avoided

D.  

Yes, they eliminate all the risks of buying from an overseas supplier

Discussion 0
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