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[General] Reliable L4M4 Test Pattern & L4M4 Reliable Test Preparation

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【General】 Reliable L4M4 Test Pattern & L4M4 Reliable Test Preparation

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CIPS Ethical and Responsible Sourcing Sample Questions (Q180-Q185):NEW QUESTION # 180
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE
  • A. on time in full deliveries
  • B. sustainability
  • C. innovation
  • D. bulk discount
  • E. cost plus pricing
Answer: A,B,C
Explanation:
The correct answers are innovation, on time in full deliveries and sustainability.
The other options are pricing mechanisms rather than 'added value'. Added Value is giving the buyer something extra that's not necessarily financial. It can be as simple as delivering orders quicker than expected, or having a dedicated customer service phone line. Something that makes their lives a little easier.

NEW QUESTION # 181
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?
  • A. the amount of money held in the company's bank account
  • B. the owners' residual claim once all debt has been paid
  • C. the profit from sales once tax has been deducted
  • D. the amount of money from retained earnings
Answer: B
Explanation:
shareholder equity = the owner/s of the organisation's residual claim once all debts have been paid. What Is Shareholder Equity (SE) and How Is It Calculated? (investopedia.com)

NEW QUESTION # 182
Each stage of the tendering procedure requires a timeline to be met by bidders and the tender processing team.
Which of the following explains why timescales are important in the tendering process?
* They help in getting the right lead-time on the purchase order
* They separate the quickest bidders from the slowest
* They ensure that all bidders are treated equally
* They ensure that bids are submitted in the correct format
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 2 and 3 only
  • D. 1 and 2 only
Answer: A
Explanation:
Clearly defined timescales are essential to ensurefairness and consistencyin the tendering process. They help buyers plan appropriatelead-times for purchase orders (1)and ensure thatall bidders are treated equally (3) by being given the same deadlines. Timescales are not intended to rank bidders by speed, nor do they ensure correct bid formatting. Ethical and responsible sourcing places strong emphasis on transparency and equal treatment, particularly in competitive tendering, ensuring no supplier gains an unfair advantage due to ambiguous or inconsistent deadlines.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - tendering procedures; fairness and transparency.

NEW QUESTION # 183
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?
  • A. it is time-consuming to create
  • B. it is hard to be objective
  • C. it allows transparency
  • D. it is easy to manipulate
Answer: C
Explanation:
Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.

NEW QUESTION # 184
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?
  • A. work out the supplier's gearing ratio
  • B. work out the supplier's EBITDA
  • C. do an Acid Test
  • D. use the Return on Investment Ratio
Answer: A
Explanation:
Greg needs to use a gearing ratio. Gearing is a measure of how the business is being funded and is based on the ratio of debt to equity Gearing comes up a lot in the exam. Also make sure you know what Return on Investment, Acid Test and EBITDA are.
Return on Investment (ROI): How to Calculate It and What It Means (investopedia.com) EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com) Acid-Test Ratio: Definition, Formula, and Example (investopedia.com)

NEW QUESTION # 185
......
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