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L4M4 Practice Questions

Ethical and Responsible Sourcing

Last Update 5 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 # 1

A restricted tender process involves supplier selection. This process focuses on which of the following?

    Production capacity

    Decommissioning costs

    Total life cost

    Financial stability

Options:

A.  

1 and 2 only

B.  

1 and 5 only

C.  

1 and 4 only

D.  

2 and 4 only

Discussion 0
Question # 2

Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers. Which of the following is Luke now likely to know about the marketplace? Select THREE

Options:

A.  

acceptable lead times

B.  

amount of product competition

C.  

expected changes in the marketplace

D.  

exact costs of the item he's procuring

E.  

samples of the product

Discussion 0
Question # 3

For complex and high value tenders, which document is the most appropriate to send to those suppliers who have already been appraised and deemed suitable?

Options:

A.  

PQQ

B.  

ITT

C.  

RFQ

D.  

RFT

Discussion 0
Question # 4

One approach to managing supply risk is by having multiple suppliers of a given product or category of requirements. This approach has both advantages and disadvantages. Which of the following conditions would be a reason for multiple sourcing arrangements?

Options:

A.  

It is suitable for high-value, one-off requirements such as machinery

B.  

It increases the risk and costs of switching within the supplier base

C.  

It is suitable for high-value requirements such as raw materials

D.  

It restricts opportunity for competition within the supplier base

Discussion 0
Question # 5

Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

Options:

A.  

No, suppliers cannot be legally responsible for ESG compliance; this should be the buying organization

B.  

Yes, this helps to demonstrate the importance of compliance to ESG

C.  

No, ESG is not within the scope of a contractual document and should always be treated informally

D.  

Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously

Discussion 0
Question # 6

Which of the following items would you expect to find on a balance sheet? Select THREE

Options:

A.  

current assets

B.  

current liabilities

C.  

net product sales

D.  

stockholders' equity

E.  

gross product sales

Discussion 0
Question # 7

A buyer for a large manufacturing organisation is assessing a sole-supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole-supplier proposal?

Options:

A.  

Yes. The buyer can negotiate on aspects such as after-sales service

B.  

Yes, but only if the buyer decides to re-start the tender opportunity

C.  

No, because a buyer has no leverage over a sole supplier

D.  

No. The buyer must make the decision based on the existing information

Discussion 0
Question # 8

The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstances?

Options:

A.  

Yes, so that the local pest control sector can decide between them who should bid

B.  

No, because they might receive too many irrelevant proposals which may delay the assessing process

C.  

No, because international vendors must also be notified of the opportunity

D.  

Yes, they must seek as many bids as possible, even if it takes longer

Discussion 0
Question # 9

Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender. What is the benefit of incorporating standards in a specification?

Options:

A.  

Standards provide clear guidelines and remove ambiguity

B.  

Standards will mirror the buyer’s requirements entirely

C.  

Standards will ensure low pricing in tender responses

D.  

Standards will ensure suppliers meet all buyer’s requirements

Discussion 0
Question # 10

Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.

Options:

A.  

The company's criteria for make or buy decisions

B.  

The financial stability of the company

C.  

Procedures on intra-company trading

D.  

The company’s employee working conditions

E.  

The company's code of ethics

F.  

The company's policy on carbon emissions

Discussion 0
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