L4M4 Ethical and Responsible Sourcing Exam Free Dumps

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The L4M4 Ethical and Responsible Sourcing exam is for the CIPS Level 4 Diploma in Procurement and Supply certification. To take the L4M4 exam, you must have over 2+ years of relevant experience in a business environment. There are 60 questions in the real Ethical and Responsible Sourcing L4M4 exam, and you have 90 minutes to answer all the questions. Once you pass the L4M4 exam, you can get 6 credits. We provide the latest Ethical and Responsible Sourcing L4M4 exam dumps, which can ensure you pass the test easily. Free Ethical and Responsible Sourcing L4M4 exam dumps are available below.

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1. Which of the following should be considered when calculating ratios relating to a supplier's liquidity?

inventory

reserves

receivables

profit

2. A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asks Questions relating to how they will deliver the service and gives a deadline for bids to be submitted.

Which document have the suppliers ben sent?

Request for Quotation

Invitation to Tender

Invitation to Quote

Request for Tender

3. Which of the following would you expect to find in an Invitation to Tender? Select THREE

awarding body

deadline (Correct)

pricing schedule

qualifications required

risk assessments

4. Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers.

Which of the following is Luke now likely to know about the marketplace? Select THREE

acceptable lead times

amount of product competition

expected changes in the marketplace

exact costs of the item he's procuring

samples of the product

5. Achieving the 'five rights of procurement' is one of the key objectives of procurement managers.

Which of the following are not considered one of the 5 rights? Select TWO.

time

ethics

environment

quantity

quality

6. Tendering is a more formal and regimented process than sending out requests for quotations.

Which of the following are services that are often put out to tender? Select THREE.

security

consultancy

provision of raw materials

office supplies

cleaning

7. In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?

Most Economically Advantageous Tender

Best Value for Money

Cheapest Overall Tender

Best Business Fit

8. Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?

yes- point systems can be weighted any way a buyer choses so long as this is explained in the ITT

yes- 25 is the correct weighting for quality question

no- the weighting should total 10

no- the weighting should total 100

9. 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?

it allows transparency

it is time-consuming to create

it is easy to manipulate

it is hard to be objective

10. The gross profit of a company can be calculated by using a simple formula.

What is this?

total revenue - cost of sales

assets - liabilities

cost of sales - fixed assets

debt owed - total sales

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11. A balance sheet will show a company's assets, liabilities and shareholder equity.

What is share-holder equity?

the profit from sales once tax has been deducted

the amount of money held in the company's bank account

the owners' residual claim once all debt has been paid

the amount of money from retained earnings

12. If a company is described as 'liquid' what does this mean?

the company is funded on equity rather than debt

the company spends a lot of money

the company is highly profitable

the company has enough money to pay short-term liabilities

13. Which of the following would be considered a strategic sourcing activity?

an office ordering copier paper

a bakery ordering eggs

a factory ordering a new machine

a restaurant ordering plastic cups

14. What type of relationship should a buyer seek when making strategic sourcing for their business?

transactional

collaborative

arms-length

partnership

15. Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits.

Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO

cakes

cereal bars and biscuits

cleaning

facilities management

16. Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?

improved quality control

less inventory

killset of supplier is higher

threat of substitutions

17. Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing

strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down

his supplier base and purchase from one supplier.

Which type of sourcing arrangement has Ramesh began?

dual

multiple

single

sole

18. Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.

What relationship style would be best suited?

collaborative

transactional

adversarial

non-critical

19. In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony.

Which negotiation tactic is the supplier using?

competitive

collaborative

compromising

accommodating

20. Liquidity is a solvency measure which determines whether an organisation is able to pay its debt.

Which of the following would you use to assess a supplier's liquidity? Select TWO.

current assets

current liabilities

long-term debt

shareholder's equity

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21. 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?

use the Return on Investment Ratio

do an Acid Test

work out the supplier's EBITDA

work out the supplier's gearing ratio

22. Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio.

What would this suggest?

the supplier is extremely profitable

the supplier has a lot of long-term debt

the supplier has a high cost of sales

the supplier has a strong return on investment

23. What would an EBITDA ratio show you?

how profitable a business is

how solvent a business is

how much of a business's funding is made up of long term debt

how effectively a business uses its assets to generate sales

24. A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

Yes- a low gearing ratio means the company's finances are made up of equity rather than debt

Yes- a low gearing ratio shows that the business is solvent and can deal with supply chain disruptions easily

No- a low gearing suggests that the company is financed by long-term debt rather than equity

No- a low gearing shows you that a company isn't likely to be profitable

25. Which of the following is an example of intracompany trading? Select TWO

a manufacturer in the UK buys raw copper from a supplier in Chile

two companies owned by the same entity conduct business

two companies join together to create a new product

two departments within the same company collaborate on a project

cleverness

26. 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?

develop strategy

supplier selection

contract award

asset management

27. For complex and high value tenders, which document is the most appropriate to send to those suppliers who have already been appraised and deemed suitable?

PQQ

ITT

RFQ

RFT

28. 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?

ESG Policy

Anti-Slavery Policy

ISO9001

ISO27000

29. Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

location

distribution

reputation

quality

price

30. Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation.

Which of the following is assessed at the pre-qualification stage?

capacity, capability and pricing structure

pricing structure, ethics and financial stability

financial stability, capacity and capability

capability, culture and pricing schedules

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31. When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?

yes- because a low rating would have a negative impact on the company's reputation

yes- because a low rating would indicate the supplier is financially unstable

no- because a low rating would not affect the quality of the products supplied

no- because a low credit rating would have a negative impact on the supply chain

32. Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?

acid test

current ratio

gross profit margin

gearing ratio

33. Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these.

Which of the following items would be C category items?

high value items

one-off purchases

tail spent

strategic sourcing

34. GDP is an economic index that a procurement professional can use to measure economic data.

What does GDP tell you?

the value of public limited companies within a country

the monatary value of the goods manufactured in a financial period

the value of commodities such as steel, oil and wheat at a point in time

average changes in price over a year

35. FTSE100 and Sensex are examples of what?

stock markets

commodity indices

financial reports

public sector organisations

36. If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?

that there is little demand in the marketplace

demand is exceeding supply

there is a threat of substitution

the marketplace is a monopoly

L4M4 Ethical and Responsible Sourcing Exam Free Dumps

L4M4 Ethical and Responsible Sourcing Exam Free Dumps

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