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L4M4 Practice Exam Questions and Answers

Ethical and Responsible Sourcing

Last Update 3 days ago
Total Questions : 282

CIPS Level 4 Diploma in Procurement and Supply is stable now with all latest exam questions are added 3 days ago. Incorporating L4M4 practice exam questions into your study plan is more than just a preparation strategy.

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Question # 1

For what type of purchase would you use a Futures Exchange?

Options:

A.  

Tail Spend

B.  

Capital Expenditure

C.  

Commodity

D.  

High value, high risk

Discussion 0
Question # 2

Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally. Which of the following is described by Incoterms? Select THRE

E.  

Options:

A.  

which party arranges insurance

B.  

what form of transportation will be used

C.  

how much the transportation will cost

D.  

who is responsible for making duty and tariff arrangements

E.  

how long the transportation will take

Discussion 0
Question # 3

You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?

Options:

A.  

Yes, a weighted points system is always the best way to evaluate suppliers' bids

B.  

No, it is not necessary, as in this case, you are mainly concerned with price

C.  

Yes, you should follow the same procurement process irrespective of the circumstances

D.  

No, you should only use a weighted points system for high-spend procurement

Discussion 0
Question # 4

An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?

Options:

A.  

Quality and lead time and performance

B.  

Innovation and creativity performance

C.  

Financial and environmental performance

D.  

Procedure and process performance

Discussion 0
Question # 5

Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to. Which of the following is a benefit of incorporating standards as a requirement within a specification?

Options:

A.  

Standards will mirror the buyer’s requirements in its entirety

B.  

Standards provide clear guidelines and remove the risk of ambiguity

C.  

Standards will ensure suppliers meet all the buyer’s requirements

D.  

Standards will ensure low pricing is submitted in the tender response

Discussion 0
Question # 6

Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies. Will this reduce the risk posed to Khalid?

Options:

A.  

yes- suppliers should quote in their own currencies so there is no risk to the importing company

B.  

yes- when suppliers quote in local currencies you are more likely to get better prices

C.  

no- quoting the prices in GBP / £ will provide Khalid with better security against cur-rency fluctuations

D.  

no- prices should be quoted in GBP / £ as this will reduce the cost of imports

Discussion 0
Question # 7

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

Options:

A.  

to state which products can be exported from which countries

B.  

to ensure buyers and suppliers pay the correct level of tax on imported and exported goods

C.  

to describe the point at which an item is considered delivered

D.  

to provide internationally recognized product descriptions

Discussion 0
Question # 8

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
Question # 9

Tendering is a more formal and regimented process than sending out requests for quotations. Which of the following are services that are often put out to tender? Select THRE

E.  

Options:

A.  

security

B.  

consultancy

C.  

provision of raw materials

D.  

office supplies

E.  

cleaning

Discussion 0
Question # 10

Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

Options:

A.  

Yes, because this rating indicates poor financial management practices

B.  

No, because a credit rating is only one financial tool to be used in determining financial competence

C.  

No, because a credit rating is not an appropriate decision-making tool

D.  

Yes, because this rating means that insolvency or liquidation is imminent

Discussion 0
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