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Free PDF Quiz L4M4 - The Best Test Ethical and Responsible Sourcing Testking

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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
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 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.
Topic 4	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.

CIPS Ethical and Responsible Sourcing Sample Questions (Q96-Q101):

NEW QUESTION # 96
If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

A. Complete Due-Diligence on all new suppliers
B. Complete formal tenders to find the best suppliers
C. Only work with suppliers who have a published Anti-Slavery policy
D. Only work with known suppliers

Answer: A

Explanation:
Completing Due Diligence checks will help guard against concerns about unethical business practices.
Not all companies will have a published Anti-Slavery policy- this is only required for large companies.
Known suppliers might have issues that you don't know about so you should always do due-diligence checks on everyone you work with Formal tenders won't sort out ethical issues unless specifically addressed within the tender and strong contract management is put in place afterwards.

NEW QUESTION # 97
Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk. What type of sourcing will he be completing?

A. insourcing
B. outsourcing
C. tactical
D. strategic

Answer: C

Explanation:
tactical is the correct answer; items that are short-term or low value are considered tactical.
Strategic sourcing is long term and high value.
Outsourcing is moving a key business function to an external company.
Insourcing is bringing a previously outsourced part of the company back in-house.

NEW QUESTION # 98
Bribery is considered an unethical business practice. What constitutes a bribe?

A. anything that is of value to the recipient
B. something that has monetary value
C. something of significant monetary value
D. anything that can be traded illegally

Answer: A

Explanation:
A bribe is anything that is of value to the recipient. It's commonly money, but could also be an item such as a car, or doing someone a favour such as hiring their son.

NEW QUESTION # 99
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steeprise in inflation?

A. acid test
B. current ratio
C. gearing ratio
D. gross profit margin

Answer: C

Explanation:
The correct answer is 'gearing ratio'.
Gearing measures how much of a company's funding is based on long-term debt or loans- this would be affected by a steep rise in inflation. If a company has a mortgage on their offices or facto-ry and they need to remortgage and inflation has gone up a lot- they'll be paying a lot more on their mortgage. This will severely effect the gearing ratio as they'll have more outgoings than incoming.
Gross profit margin COULD be affected by inflation, for example if you've got hyper-inflation and the country goes into recession and people stop buying your product. However, this answer isn't al-ways right and depends on many factors- the industry, the product, the company etc, so for the purpose of CIPS should be discounted. There are many industries which are immune to inflation.

NEW QUESTION # 100
What are the risks of outsourcing?
* Loss of control of a project
* Loss of assets
* Loss of future business opportunities
* Loss of private information

A. 1 and 2 only
B. 1 and 4 only
C. 2 and 3 only
D. 3 and 4 only

Answer: B

Explanation:
Outsourcing can create risks such as loss of control over a project (1) since operations are managed externally, and loss of private information (4) if data security and confidentiality are not managed effectively. Loss of assets (2) typically refers to internal asset disposal, not outsourcing. Loss of future business opportunities (3) is more linked to strategic misalignment, not a core outsourcing risk. Responsible sourcing emphasises that outsourcing should include robust governance, contractual protections, and supplier monitoring to manage risks of data leakage, reduced oversight, and potential ethical breaches.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implications" - outsourcing risks and ethical considerations.

NEW QUESTION # 101
......

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Test L4M4 Testking - L4M4 Real Brain Dumps

Free PDF Quiz L4M4 - The Best Test Ethical and Responsible Sourcing Testking

CIPS L4M4 Exam Syllabus Topics:

CIPS Ethical and Responsible Sourcing Sample Questions (Q96-Q101):

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