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L4M4 VCE Exam Guide & L4M4 Latest Practice Questions & L4M4Online Exam S

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L4M4 VCE Exam Guide & L4M4 Latest Practice Questions & L4M4Online Exam S

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You don't have to install excessive plugins or software to attempt this CIPS L4M4 practice test. This version of L4M4 practice exam is supported by these operating systems: Windows, Mac, iOS, Linux, and Android. It is a customizable CIPS L4M4 Practice Exam. It means takers can change its duration and L4M4 practice test question numbers. The actual CIPS L4M4 exam environment that the practice exam creates is beneficial to counter Ethical and Responsible Sourcing (L4M4) exam anxiety.
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CIPS Ethical and Responsible Sourcing Sample Questions (Q46-Q51):NEW QUESTION # 46
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 ensure 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. Annual turnover
  • B. Profit and loss account
  • C. Acid test
  • D. Gearing ratio
Answer: C
Explanation:
The acid test (quick ratio) is an effective measure of a supplier's ability to meet short-term liabilities, providing insights into financial stability. This aligns with responsible sourcing by ensuring the supplier is financially capable of fulfilling a strategic contract.

NEW QUESTION # 47
Which of the following is a strategic cost associated with outsourcing cyber-security from an in-house IT function to a specialist supplier?
  • A. Loss of informal relationship with cyber experts
  • B. Loss of expertise within business
  • C. Loss of financial resources due to regulation
  • D. Loss of influence over prioritisation of tasks
Answer: B
Explanation:
Outsourcing critical functions like cybersecurity can lead to a loss of in-house expertise, which is a strategic cost. This loss may impact the organization's ability to respond swiftly to security threats, innovate, and maintain control over sensitive operations. Retaining core competencies is vital for sustaining competitive advantage and ensuring long-term resilience.
Exact Extract from Study Guide:
"Outsourcing core activities risks - loss of in-house skill, loss of key staff to competitors, risk that supplier cannot be found, loss of control over operating activities, risk of loss of control over confidential information
/IP.

NEW QUESTION # 48
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 # 49
Which of the following are primary sources of data? Select TWO.
  • A. published price lists
  • B. phone calls with current suppliers
  • C. market reasearch commissioned by a rival company
  • D. economic indices such as PPI or CPI
  • E. trade fairs and exibits
Answer: B,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 # 50
When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored.
Which of the following questions would be assessing any of the ESC criteria?
* Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?
* How do you promote equal opportunity for your employees, customers, and suppliers?
* What is the annual turnover and profitability of your company?
* Does your company have an anti-bribery policy?
  • A. 2 and 3
  • B. 2 and 4
  • C. 1 and 3
  • D. 1 and 4
Answer: B
Explanation:
Questions about equal opportunity and anti-bribery policies assess the supplier's commitment to social and ethical standards. These aspects are part of the ESC criteria, which align with responsible sourcing practices by ensuring suppliers maintain ethical workforce practices and governance.

NEW QUESTION # 51
......
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