AUTHORIZED L4M4 TEST DUMPS - L4M4 PAPER

Authorized L4M4 Test Dumps - L4M4 Paper

Authorized L4M4 Test Dumps - L4M4 Paper

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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
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential 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.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q33-Q38):

NEW QUESTION # 33
Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?

  • A. the supplier has a high cost of sales
  • B. the supplier has a strong return on investment
  • C. the supplier is extremely profitable
  • D. the supplier has a lot of long-term debt

Answer: D

Explanation:
The correct answer is 'the supplier has a lot of long-term debt'. Gearing is a measure of how the business is being funded and looks at the ratio of debt to equity. For example if they have taken out lots of loans and mortgages, this would equate to a lot of debt which means a poor gearing ratio.
Gearing is a hot topic for the exam.


NEW QUESTION # 34
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market. Is it good practice for the procurement buyer to makesourcing recommendations?

  • A. No, the buyer's recommendations are not relevant to the final sourcing decision, which must be taken by the business managers
  • B. Yes, the procurement buyer can advise on the competitive proposal but should engage with the business managers about the decision to award the tender
  • C. No, it is a lengthy, costly, and unnecessary step for the procurement buyer to engage business managers
  • D. Yes, the procurement buyer should assess and take all decisions to award the tender independently of the business managers to avoid conflict of interest

Answer: B

Explanation:
Engaging with business managers while making sourcing recommendations ensures that the buyer considers multiple perspectives, reducing potential biases and improving decision-making. This approach aligns with ethical sourcing practices by promoting collaboration and transparency in tender decisions.


NEW QUESTION # 35
What mechanism helps buying organisations achieve a best value outcome in a tender exercise?

  • A. Advertising requirements
  • B. Providing a debrief
  • C. Restricting the number of bidders
  • D. Timetabling the process

Answer: B

Explanation:
Providing a debrief allows suppliers to understand the tender process and learn areas of improvement, promoting transparency. This practice supports responsible sourcing by fostering a fair, competitive environment and encouraging suppliers to improve their future offerings.


NEW QUESTION # 36
Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know tocalculate shareholder equity? Select TWO.

  • A. net income
  • B. net profit
  • C. total assets
  • D. total liabilities

Answer: C,D

Explanation:
Shareholder Equity = Total Assets - Total Liabilities


NEW QUESTION # 37
What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

  • A. they will not achieve KPIs
  • B. they may coach staff in what to say
  • C. they will not perform regular duties that day
  • D. they will not be able to make that time and date

Answer: B


NEW QUESTION # 38
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