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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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L4M4 Practice Questions

Ethical and Responsible Sourcing

Last Update 19 hours ago
Total Questions : 301

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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 # 31

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

Options:

A.  

Return on Equity

B.  

Acid Test

C.  

Gearing Ratio

D.  

Gross Profit Margin

Discussion 0
Question # 32

You have been asked to set some key performance indicators (KPIs) for your local stationery provider and you decide to set the following requirements:

To deliver all orders within a one-hour period

To collect any returns within one hour

Are these KPIs appropriate?

Options:

A.  

No, because they are not realistic or achievable for a company to fulfil

B.  

Yes, because they are local so it should be easy for them if they want the business

C.  

No, because you do not want to make demands and ruin future relations

D.  

Yes, because the customer is always right so the supplier should do it

Discussion 0
Question # 33

Ramesh is an IT category manager within the UK’s National Health Service and is responsible for the procurement of a new high-value network system, which will spread across multiple doctors' practices and community health centres. Ramesh has reviewed different tender approaches and concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?

Options:

A.  

Direct negotiations occur prior to suppliers submitting their offer

B.  

The contract will be awarded strictly on pricing criteria

C.  

Suppliers responding to the tender are pre-qualified

D.  

It is only relevant when there are few suppliers in the market

Discussion 0
Question # 34

What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?

Options:

A.  

Not working with suppliers who you have heard have a reputation for bribery and corruption

B.  

Requesting your supplier’s ethical policies on an annual basis

C.  

Having full anti-bribery training, policies, and procedures in place

D.  

Asking all suppliers to read your organisation’s policy on anti-bribery and corruption

Discussion 0
Question # 35

When assessing social responsibility elements of a supplier's proposal, what type of supporting evidence could a supplier provide?

Options:

A.  

Evidence of compliance with fair trade standards

B.  

Results of a customer service survey on delivery performance

C.  

Quality control reports documenting quality checks in the manufacturing process

D.  

Financial statements detailing profit and loss accounts

Discussion 0
Question # 36

Weighted points systems can be applied to evaluate and compare potential suppliers. For which of the following factors would it be appropriate to use this method?

Financial stability

Supplier reliability

Market demand

Negotiation styles

Options:

A.  

1 and 2 only

B.  

2 and 3 only

C.  

3 and 4 only

D.  

1 and 4 only

Discussion 0
Question # 37

Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?

Options:

A.  

capacity, capability and pricing structure

B.  

pricing structure, ethics and financial stability

C.  

financial stability, capacity and capability

D.  

capability, culture and pricing schedules

Discussion 0
Question # 38

“Phishing” occurs when an employee receives a false email that appears genuine, exposing the organisation to cybercrime. Which crime category does this fall under?

Options:

A.  

Corruption

B.  

Bribery

C.  

Human rights

D.  

Fraud

Discussion 0
Question # 39

A buyer is assessing a supplier’s proposal in terms of any added value offered. Which of the following are examples of added value?

    The supplier has submitted the lowest price compared to competitors

    The supplier is offering solutions to reduce costs in the supply chain

    The supplier is committed to reducing plastic and waste in operations

    The supplier is personally known by the Operations Director

Options:

A.  

1 and 3

B.  

1 and 4

C.  

2 and 3

D.  

3 and 4

Discussion 0
Question # 40

There are a number of models that can be used to appraise suppliers before commencing a full tendering process. Which of the following could be considered when appraising a supplier?

Capacity

Control

Compatibility

Commodity

Options:

A.  

1 and 2 only

B.  

2 and 4 only

C.  

1 and 3 only

D.  

2 and 3 only

Discussion 0
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