CIPS L4M4 Dumps Updated to V12.02 for Ethical and Responsible Sourcing Exam Preparation: Read L4M4 Free Dumps (Part 1, Q1-Q40) Today

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

2. What is the best way to prevent potential issues of conflicts of interest?

3. A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally.

Which of the following factors is likely to justify the decision to make the requirements internally?

4. Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

5. A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'.

What should be the procurement manager's course of action?

6. 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?

7. Incoterms are designed to be understood and interpreted on a worldwide basis.

What is the interpretation for FOB (Free on Board)?

8. A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asks Questions relating to how they will deliver the service and gives a deadline for bids to be submitted.

Which document have the suppliers ben sent?

9. A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance.

Should the company go ahead with the recommendation?

10. Which of the following should be considered when calculating ratios relating to a supplier's liquidity?

11. When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?

12. An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender.

Which of the following should be considered?

13. A buyer might opt to do an 'Invitation to Tender' rather than a 'Request for Quotation' process because ...

14. Achieving the 'five rights of procurement' is one of the key objectives of procurement managers.

Which of the following are not considered one of the 5 rights? Select TWO.

15. Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these.

Which of the following items would be C category items?

16. Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

17. In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?

18. What is a major benefit to using Incoterms when sourcing goods internationally?

19. 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 THREE.

20. Which of the following would be considered a strategic sourcing activity?

21. The gross profit of a company can be calculated by using a simple formula.

What is this?

22. Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?

23. The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers.

What is a disadvantage of using a weighted point system?

24. A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

25. A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year’s purchase orders and has been asked to confirm the month of order placement.

The buyer has found three trends:

In January and April, the supplier's local currency is stronger

November typically has the lowest demand

May typically has the highest demand

Which month should the buyer plan to place the purchase order?

26. Which of the following is an example of intracompany trading? Select TWO

27. When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?

28. The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:

Current Assets: Stock $200; Debtors $60; Cash $40; Total $300

Short Term Liabilities: Bank overdraft $150

Which calculation will the procurement manager use to find out the current ratio?

29. Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?

30. Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk.

What type of sourcing will he be completing?

31. A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with.

Which of the following statements is true?

32. ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors.

What should ABC do?

33. 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?

34. A buyer has discovered their supplier has taken the passports of some of their workforce. The

supplier has offered the buyer a discount against the contract, but the discount only applies if the

buyer does not report this finding.

Which ethical concerns should the buyer report to the necessary

stakeholders?

Fraudulent activity

Bribery

Modern slavery

Breach of confidentiality

35. An organisation wants to measure its Triple Bottom Line.

Which of the following should be considered to help achieve this goal?

36. Which of the following would you expect to find in an Invitation to Tender? Select THREE

37. GDP is an economic index that a procurement professional can use to measure economic data.

What does GDP tell you?

38. A balance sheet will show a company's assets, liabilities and shareholder equity.

What is share-holder equity?

39. What are some of the benefits of conducting unscheduled supplier audits? Select TWO that apply.

40. Which models would be appropriate for analysis of the supply market?

1) Porter's Five Forces

2) Porter’s Value Chain

3) STEEPLED

4) Ishikawa Fishbone