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[General] L4M4 Reliable Exam Voucher & Valid Test L4M4 Tips

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【General】 L4M4 Reliable Exam Voucher & Valid Test L4M4 Tips

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

CIPS Ethical and Responsible Sourcing Sample Questions (Q237-Q242):NEW QUESTION # 237
Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits. Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO
  • A. cakes
  • B. facilities management
  • C. cereal bars and biscuits
  • D. cleaning
Answer: B,D
Explanation:
Cleaning and Facilities Management are the most appropriate items to outsource. They would not outsource the making of confectionary products as this is the 'core' business.
See p.4 for "what is outsourcing?"

NEW QUESTION # 238
A company has a requirement for an item that has been identified as strategic on the positioning model. The company needs to invite competitive tenders and make sure the selected supplier of this item is in a good financial position. What should the company ask the suppliers to send to show that their current assets cover their current liabilities?
  • A. Gearing ratio
  • B. Annual turnover
  • C. Profit and loss account
  • D. Acid test
Answer: D
Explanation:
The acid test, also known as the quick ratio, measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory. It is a stringent indicator of short-term financial health. By requesting this ratio, the company can assess whether a potential supplier has sufficient liquidity to meet its obligations, which is crucial when procuring strategic items.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3: Financial Appraisal of Suppliers

NEW QUESTION # 239
The procurement manager has supplier data: Current Assets = $300 (Stock $200, Debtors $60, Cash $40).
Short-Term Liabilities = $150 (Bank overdraft). Which calculation gives the current ratio?
  • A. 300 - 150 × 100
  • B. 300 ÷ 150
  • C. 300 - 200 ÷ 150
  • D. 300 - 200 ÷ 150 × 100
Answer: B
Explanation:
The current ratio = Current Assets ÷ Current Liabilities. Here, Current Assets = 300; Current Liabilities =
150. Therefore, Current Ratio = 300 ÷ 150 = 2.0. This means the supplier has twice the assets available to cover short-term debts, indicating strong liquidity. The other options incorrectly subtract assets or liabilities, which is not the formula. Responsible sourcing emphasises interpreting ratios accurately: a ratio below 1 signals liquidity risks, while excessively high ratios may indicate inefficient asset utilisation.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - current ratio calculation and interpretation.

NEW QUESTION # 240
Which of the following are primary sources of data? Select TWO.
  • A. published price lists
  • B. economic indices such as PPI or CPI
  • C. trade fairs and exibits
  • D. market reasearch commissioned by a rival company
  • E. phone calls with current suppliers
Answer: C,E
Explanation:
Primary data includes trade fairs and exhibits, and phone calls to current suppliers. The others are examples of secondary data.
Remember primary= you do it yourself, Secondary = someone else did it.

NEW QUESTION # 241
The Freedom of Information Act is a piece of UK legislation which allows members of the public to request information on issues such as public sector sourcing. When a request is made, it is compulsory for the public sector to provide this information to the public. Is this statement true?
  • A. no- the public sector can choose not to publish information if it is not deamed to be in the public interest
  • B. no- the public sector does not need to provide information on sourcing activities
  • C. yes- the information must be posted publically online
  • D. yes- the information must be provided within 28 days
Answer: A
Explanation:
the correct answer is 'no- the public sector can choose not to publish information if it is not deemed to be in the public interest'.
They use something called the 'public interest test' to determine if the information should be re-leased or not.
For example they may not respond to a request asking how many bullets the UK Army has in storage, as that would be detrimental to national security interests.
Responses to requests are made within 21 days, not 28.

NEW QUESTION # 242
......
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