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CIPS L4M4 Exam Syllabus Topics:| Topic | Details | | Topic 1 | - Understand the key processes that can be applied to the analysis of potential external suppliers:
| | Topic 2 | - Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
| | Topic 3 | - This section examines analyzing market data, obtaining quotations
- tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
| | Topic 4 | - Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
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CIPS Ethical and Responsible Sourcing Sample Questions (Q102-Q107):NEW QUESTION # 102
'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?
- A. Fraud
- B. Human rights
- C. Bribery
- D. Corruption
Answer: A
Explanation:
Phishing is categorized as fraud because it involves deceptive practices to gain sensitive information or financial benefits. Responsible sourcing includes ensuring that cybersecurity measures are in place to prevent fraud and protect sensitive information within supply chains.
NEW QUESTION # 103
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?
Answer: A
Explanation:
DDP (Delivered Duty Paid) requires the supplier to cover all delivery costs, including import duties and taxes.
This term ensures that the buyer receives the goods without additional charges, aligning with public sector procurement practices for cost-effective and transparent sourcing.
NEW QUESTION # 104
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?
- A. No, the buyer must make the decision based on the existing information
- B. Yes, the buyer can negotiate on aspects such as after-sales service
- C. Yes, but only if the buyer decides to re-start the tender opportunity
- D. No, because a buyer has no leverage over a sole supplier
Answer: B
Explanation:
In cases where price differentiation is minimal, negotiating on added-value services like after-sales support can offer additional benefits. This aligns with responsible sourcing by focusing on long-term value and fostering a cooperative relationship with the supplier.
NEW QUESTION # 105
What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?
- A. Requesting suppliers' ethical policies annually
- B. Having full anti-bribery training, policies, and procedures in place
- C. Asking all suppliers to read your organisation's anti-bribery policy
- D. Not working with suppliers who have a reputation for bribery
Answer: B
Explanation:
The most effective way to demonstrate zero tolerance is by embedding a comprehensive anti-bribery framework: clear policies, mandatory staff and supplier training, reporting channels, and monitoring. Simply requesting suppliers' policies or avoiding known offenders is reactive, not proactive. Requiring suppliers to read policies without internal enforcement lacks substance. CIPS highlights that robust governance structures, supported by recognised frameworks such as the UK Bribery Act or FCPA, reinforce organisational credibility, protect reputation, and ensure compliance. This builds trust across supply chains and ensures ethical standards are maintained.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethics, anti-bribery and corruption frameworks.
NEW QUESTION # 106
Which of the following is an example of intracompany trading? Select TWO
- A. two companies join together to create a new product
- B. two departments within the same company collaborate on a project
- C. two companies owned by the same entity conduct business
- D. cleverness
- E. a manufacturer in the UK buys raw copper from a supplier in Chile
Answer: B,C
Explanation:
Intracompany trading is when two departments in the same company do trading. AND when two companies owned by the same parent company do trading.
INTRA means 'within' - so it's doing business with yourself.
NEW QUESTION # 107
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