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CIPS L4M4 Valid Study Questions, L4M4 Pdf Braindumps

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CIPS L4M4 Valid Study Questions, L4M4 Pdf Braindumps

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CIPS L4M4 Exam Syllabus Topics:
TopicDetails
Topic 1
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2
  • 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.
Topic 3
  • 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 4
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

CIPS Ethical and Responsible Sourcing Sample Questions (Q280-Q285):NEW QUESTION # 280
Supplier selection focuses on which of the following?
* Supplier suitability and capability of meeting requirements
* Which pre-qualified supplier represents the best outcome
* Financial stability and quality culture of the supplier
* Most time-efficient tender from a supplier
  • A. 3 and 4 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1 and 2 only
Answer: D
Explanation:
Supplier selection is about ensuring that suppliers are capable and suitable to meet the buyer's requirements, including quality, reliability, and alignment with ethical standards. It also focuses on identifying, from a pool of pre-qualified suppliers, which supplier offers the best overall outcome. Financial stability and culture are considered earlier in pre-qualification, not during final selection. Similarly, "time-efficiency" in tender response is not a primary factor in supplier selection. Responsible sourcing emphasises due diligence, capability, and alignment with sustainability and ethical practices as part of selection decisions.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - supplier pre-qualification vs. selection criteria.

NEW QUESTION # 281
Why is it important to consider factors such as environmental, social, governance, and ethics (ESG) when analysing tenders?
* To ensure adherence to sustainability initiatives
* To improve process workflow
* To perform supplier spend and monitoring
* To identify potential risks within the supply chain
  • A. 3 and 4 only
  • B. 1 and 4 only
  • C. 1 and 2 only
  • D. 2 and 3 only
Answer: B
Explanation:
Including ESG criteria in tender analysis helps ensure suppliers align with the buyer's sustainability initiatives (1) and helps identify risks within the supply chain (4), such as unethical labour practices or environmental harm. Improving workflow (2) and spend monitoring (3) are operational concerns but not ESG drivers.
Responsible sourcing requires procurement professionals to integrate ESG into decision-making, ensuring not only cost-efficiency but also ethical compliance, resilience, and long-term value. This reflects the growing importance of corporate social responsibility (CSR) and stakeholder expectations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ESG in sourcing decisions.

NEW QUESTION # 282
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?
  • A. No, you should only use a weighted points system for high-spend procurement
  • B. Yes, a weighted points system is always the best way to evaluate bids
  • C. Yes, you should follow the same procurement process irrespective of the circumstances
  • D. No, it is not necessary as in this case, you are mainly concerned with price
Answer: D
Explanation:
Weighted points systems are appropriate for complex or high-value purchases where multiple factors (e.g., quality, sustainability, delivery) must be balanced. For simple, low-value purchases like pens, price is typically the only differentiating factor. Using a weighted points system would overcomplicate the process, wasting resources. Responsible sourcing requires proportionality - applying robust evaluation methods where justified, while keeping processes simple and efficient for routine purchases. This ensures efficiency without compromising governance, freeing procurement resources for strategic projects.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - proportionality in procurement methods.

NEW QUESTION # 283
Which of the following is a measure of liquidity?
  • A. Gearing
  • B. Current Ratio
  • C. Total Asset Turnover
  • D. Return on Investment
Answer: B
Explanation:
Liquidity measures a company's ability to meet short-term obligations. The current ratio = current assets ÷ current liabilities, indicating whether the business can cover debts due within one year. Ratios above 1 suggest healthy liquidity, though excessively high ratios may show underutilised cash. Gearing reflects debt-to-equity (solvency); ROI assesses profitability; total asset turnover measures efficiency. Responsible sourcing requires buyers to evaluate liquidity to ensure suppliers have the working capital to maintain operations and deliver reliably. Poor liquidity is a red flag for potential supply disruption.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial ratios and their interpretation.

NEW QUESTION # 284
A procurement manager suggests implementing an ISO environmental standard to improve procurement practices. Some colleagues worry about complexity and resistance. Should the company proceed?
  • A. Yes, as it would align with and help to achieve sustainability goals
  • B. No, ISO standards are too complex for staff and suppliers
  • C. No, because ISO standards are only relevant to large organisations
  • D. Yes, implementation would guarantee compliance with environmental laws
Answer: A
Explanation:
ISO environmental standards (e.g., ISO 14001) provide a structured framework for managing environmental responsibilities. They support sustainability goals by embedding continual improvement, legal compliance, and stakeholder trust. They are relevant to organisations of all sizes and sectors, not just large firms. While they do not automatically guarantee compliance, they enhance systematic control, training, and supplier engagement. Resistance and complexity can be overcome with phased implementation and awareness- building. CIPS emphasises that adoption of recognised standards demonstrates responsible sourcing, aligns with CSR strategies, and reassures stakeholders about commitment to sustainability.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - standards, sustainability frameworks, ISO principles.

NEW QUESTION # 285
......
The field of information technology has seen multiple advancements lately. Reputed companies around the globe have set the Ethical and Responsible Sourcing L4M4 certification as criteria for multiple well-paid job roles. Only L4M4 certified will easily get high-paying posts in popular companies. Additionally, a CIPS L4M4 Certification holder can climb the career ladder and get promotions within the current organization.
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