L4M4 Free Dumps (Part 3, Q81-Q120) V12.02 for the Ethical and Responsible Sourcing Exam

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120 Free Questions in Three Parts: L4M4 Free Dumps (Part 3, Q81-Q120) Available Today

Before downloading the most updated L4M4 dumps (V12.02) to make preparation, you can read our free dumps to preview the quality. We choose 120 free questions for you and share them in three parts. Two parts have been shared:

• L4M4 Free Dumps (Part 1, Q1-Q40) V12.02
• L4M4 Free Dumps (Part 2, Q41-Q80) V12.02

And today, we will share L4M4 free dumps (Part 3, Q81-Q120) V12.02 online:

1. 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?

Standards provide clear guidelines and remove the risk of ambiguity

Standards will mirror the buyer's requirements in its entirety

Standards will ensure suppliers meet all the buyer's requirements

Standards will ensure low pricing is submitted in the tender response

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

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

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

Sourcing for high-cost, strategically important components

Sourcing for components required at short notice

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

1) Lead times

2) Add-on costs

3) Wastage rates

4) Past performance

1, 2, and 4 only

1, 2, and 3 only

2, 3, and 4 only

1, 3, and 4 only

4. Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing

strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down

his supplier base and purchase from one supplier.

Which type of sourcing arrangement has Ramesh began?

dual

multiple

single

sole

5. A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance.

Which Incoterm has been agreed?

CIP - Carriage and Insurance Paid

FOB - Free on Board

FCA - Free Carrier

EXW - Ex Works

6. A procurement manager for a major retail group is using ratio analysis to assess the financial viability of suppliers who have tendered for a logistics services tender. The recommended supplier has a current ratio of 0.6.

What are the potential consequences of awarding the contract to this supplier, given their current ratio is below 1?

The results of the current ratio do not mean anything as long as the supplier has proven technical merit

The supplier will be unable to cover long-term liabilities from revenues

The supplier will have cash reserves to cover unexpected expenses

The supplier will be unable to pay its short-term liabilities using current assets

7. Many organisations prefer a multi-sourcing approach because of the advantages it provides.

Which of the following might be an advantage of multi-sourcing?

It is the only approach that supports the open tendering process

It is the only approach that enables the buyer to isolate the best supplier from among many

It helps the buyer to increase stock varieties to avoid stock-outs

It increases process flexibility and switching using a range of approved suppliers

8. 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?

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

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

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

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

9. Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.

Violating the terms of the supplier contract

Define specific corrective actions for the supplier

Daily brainstorming meetings with the supplier

Employing the supplier’s staff for job training

Running supplier development programmes

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

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

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

Sourcing for high-cost, strategically important components

Sourcing for components required at short notice

11. Which of the following factors are typically considered when assessing a supplier's financial capacity?

The supplier’s profitability and asset levels

The price quoted in the request for quotation

The supplier’s costing methods and markup percentage

The supplier’s compliance with regulations for minimum wages

12. What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?

Cash flow statement (statement of cash flow) and balance sheet (statement of financial position)

Balance sheet (statement of financial position) and profit and loss account (statement of financial performance)

Profit and loss account (statement of financial performance) and chairman’s statement (in the annual report)

Cash flow statement (statement of cash flow) and profit and loss statement (statement of financial performance)

13. Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors.

Should Freddy take into consideration ethics and sustainability?

yes- ethics and sustainability form part of 'value for money'

yes- ethics and sustainability show that the products are fit for purpose

no- 'value for money' is concerned with achieving the lowest price

no- 'value for money' only concerns price and if the product is fit for purpose

14. Tracey Collum is a procurement professional and married to Nick Collum. Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids. After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems. Nick has asked Tracey to award the contract to Supplier X.

What should Tracey do?

Award the contract to Supplier X because Nick will be promoted if Supplier X wins the contract

Award the contract to Supplier X because Tracey can ask for a better price because they are married

Ask to be removed from the tender due to a conflict of interest and complete a conflict of interest form

Remove Supplier X from the tender due to a conflict of interest and continue with the tender

15. Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio.

What would this suggest?

the supplier is extremely profitable

the supplier has a lot of long-term debt

the supplier has a high cost of sales

the supplier has a strong return on investment

16. Which of the following payment mechanisms is most beneficial to the supplier?

open account

cash in advance

sight draft

letter of credit

17. If a company is described as 'liquid' what does this mean?

the company is funded on equity rather than debt

the company spends a lot of money

the company is highly profitable

the company has enough money to pay short-term liabilities

18. If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?

that there is little demand in the marketplace

demand is exceeding supply

there is a threat of substitution

the marketplace is a monopoly

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

Yes, because this rating indicates poor financial management practices

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

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

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

20. Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits.

Is this the right thing to do?

No- audits will only reveal financial issues not ethical ones

No- Ali should simply ask the supplier's about their ethical practices

Yes- audits always uncover ethical violations such as modern day slavery

yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations

21. Which of the following is true for CIPS members who sign and comply with the CIPS Code of Conduct? Members can ...

1) gain an understanding of ethical and successful business operations

2) acquire automatic entitlement to government sponsorship

3) enjoy continued CIPS membership and access to resources

4) bypass the need to comply with other voluntary or legal codes

1 and 2

2 and 3

1 and 4

1 and 3

22. The use of Incoterms will eliminate all risks involved in international trade transactions.

Is this statement true?

No, they can reduce risks but will not eliminate them

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

Yes, they are popular because all risks are avoided

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

23. Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25.

Is this the correct thing to do?

yes- point systems can be weighted any way a buyer choses so long as this is explained in the ITT

yes- 25 is the correct weighting for quality question

no- the weighting should total 10

no- the weighting should total 100

24. Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment.

Which of the following should Robert look at?

ESG Policy

Anti-Slavery Policy

ISO9001

ISO27000

25. Zeb is a Procurement Manager at Zig Zag Zips manufacturing. The organisation has a complex supply chain and works with 46 different suppliers, many of these international.

Which of the following would be the most useful for Zeb to address issues of Modern Slavery?

carry out regular due diligence checks on the supply base

ensure all 46 suppliers publish an Anti Slavery Statement in line with the Modern Slavery Act

work with less suppliers to reduce the risk of slavery entering the supply chain

ask all suppliers to get Fair Trade accredited

26. The bill of lading is one of the main documents associated with sea freight within international sourcing.

Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

It provides evidence of the contract of carriage for the goods

It provides evidence of the title of ownership of the goods

It provides evidence of the country of origin of the goods

It provides evidence that the goods are fully insured in transit

It provides evidence guaranteeing the use of Incoterms on the goods

27. Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?

No, because this timeframe will cause delays that are unacceptable to stakeholders

Yes, because it helps suppliers to plan and prioritise their work

No, because the complexity of the tender should inform the response timescale

Yes, because that timeframe is internationally recognised as being appropriate

28. 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?

All suppliers will know how much the others have bid

Only the procurement manager can decide who wins

All bidders will be treated equally

It is a quick and informal process

29. 'Phishing' is an activity that can occur when an employee within an organisation receives an email that appears to be from a genuine supplier but is false. These types of emails expose the organisation to the activities of expert cyber criminals.

Which type of crime category does this activity fall within?

Bribery

Human rights

Corruption

Fraud

30. The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms.

What is the purpose of these rules?

to state which products can be exported from which countries

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

to describe the point at which an item is considered delivered

to provide internationally recognized product descriptions

31. In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?

Most Economically Advantageous Tender

Best Value for Money

Cheapest Overall Tender

Best Business Fit

32. Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.

Professional magazines

Focus groups

Economic indices

Supplier websites

Direct conversations

Supplier interviews

33. Which of the following is considered as part of ESG?

bribery, corruption and the environment

market conditions and product lifecycle

liquidity, gearing and profitability

economic and social governance

34. Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?

acid test

current ratio

gross profit margin

gearing ratio

35. Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.

What relationship style would be best suited?

collaborative

transactional

adversarial

non-critical

36. It is good practice for the procuring organisation's auditors to undertake the following upon completion of a supplier's audit. Select the TWO that apply.

Do nothing, after all, this is a known supplier incapable of serious breaches

Inform the supplier of any non-conformances and improvement opportunities

Report non-compliance to police and have the supplier arrested for lapses

Prepare an audit report that may be shared with the supplier in advance

Call for a meeting with colleagues and share confidential details of the audit

37. 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?

FAS

EXW

DPU

DDP

38. Commodities are items which can be traded on the stock exchange. These are generally divided into four categories.

What are these four categories?

metals, energy, elements and agriculture

fruit, vegetables, meat and dairy

energy, agriculture, metals, livestock

chemicals, agriculture, metals and livestock

39. How can a buyer monitor a supplier's ethical workforce standards throughout a long-term contract?

Check the International Labour Organisation's database regularly for information specifically about that supplier

Request a completed self-assessment by the supplier on a monthly basis

Commission periodic audits by specialist third parties to highlight any malpractice

Contact management directly on a periodic basis, as stipulated in contract terms

40. Which of the incoterms listed are suitable for transporting goods via train?

FAS

FOB

CRF

EXW

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