CIPS L4M4 : Ethical and Responsible Sourcing

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CIPS L4M4 Exam Syllabus Topics:

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing

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CIPS Ethical and Responsible Sourcing Sample Questions:

Question #1
Which of the following are primary sources of data? Select TWO.

A. market reasearch commissioned by a rival company
B. trade fairs and exibits
C. published price lists
D. economic indices such as PPI or CPI
E. phone calls with current suppliers

Question #2
In which circumstances would it be relevant to apply the Pareto principle (80/20 rule) to supplier expenditure analysis? (Select TWO)

A. To identify strategic suppliers requiring closer management
B. To identify optimum opportunities to change supplier relationships
C. To identify extent of cost variation in a contract
D. To identify performance-related payment frequency
E. To identify expiry dates of contracts

Question #3
The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?

A. (300 ÷ 150) × 100
B. 300 ÷ 150
C. (300 - 200) ÷ 150
D. (300 - 200 - 150) × 100

Question #4
What are the risks of outsourcing?
Loss of control of project
Loss of assets
Loss of future business opportunities
Loss of private information

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

Question #5
During the quality assurance of a supplier, Margaret is looking for an international standard that shows the supplier's commitment to sustainable procurement. What document should the supplier provide to show this?

A. ISO27000
B. ISO20400
C. ISO9001
D. ISO14000

Solutions: