L4M4 Download Demo & L4M4 Valid Practice Materials
L4M4 Download Demo & L4M4 Valid Practice Materials
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Tags: L4M4 Download Demo, L4M4 Valid Practice Materials, Pass4sure L4M4 Pass Guide, L4M4 Exam Learning, Latest L4M4 Dumps Book
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CIPS L4M4 Exam Syllabus Topics:
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CIPS Ethical and Responsible Sourcing Sample Questions (Q78-Q83):
NEW QUESTION # 78
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 EBITDA
- B. use the Return on Investment Ratio
- C. work out the supplier's gearing ratio
- D. do an Acid Test
Answer: C
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 # 79
Under what circumstances can a buyer reduce timescales for a tender in the Public Sector?
- A. when the tender is of low value
- B. if there are fewer than 5 bidders
- C. if tenders are received by electronic submission exclusively
- D. if the competition is restricted
Answer: C
Explanation:
If tenders are received by electronic submission exclusively, the buyer can reduce the timescale. On average the time for a standard tender submission can be reduced by 5 days if bids are submitted electronically.
*Note* this is based off current PCR Regs 2015 which are being superseded in October 2024 by new legislation. We currently don't know what the new regs will say on this. If it's different, my best guess is CIPS will remove any question about it from their exam- because the study guide would be wrong and that would lead to complaints.
NEW QUESTION # 80
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
- A. contract award
- B. supplier selection
- C. asset management
- D. develop strategy
Answer: B
Explanation:
At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk). At develop strategy stage you're not even looking at suppliers yet- you're just deciding what you need.
At contract award and asset management it's too late.
CIPS procurement cycle - Procurement Supply Cycle | CIPS
NEW QUESTION # 81
Which of the following payment mechanisms is most beneficial to the supplier?
- A. sight draft
- B. letter of credit
- C. open account
- D. cash in advance
Answer: D
Explanation:
cash in advance is the most beneficial to a supplier.
Open account /credit account is the most beneficial to the buyer. Learn this as it's a known exam topic.
NEW QUESTION # 82
Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?
- A. ISO9001
- B. ESG Policy
- C. Anti-Slavery Policy
- D. ISO27000
Answer: B
Explanation:
Robert should look at the supplier's ESG policy. This stands for Environmental Social Governance. So covers both his requirements for community (social) and environmental factors.
ISO 9001 is about Quality Management and ISO27000 about Information Security so these are in-correct answers. An Anti-Slavery Policy would not discuss the environment.
NEW QUESTION # 83
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