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 procurement procedures permissible under EU Public Procurement rules? Select TWO that apply.

A. Complex procedure
B. Open procedure
C. Restricted procedure
D. Public procedure
E. Conformance procedure

Question #2
A company's balance sheet will show you which of the following?

A. revenue, profit and expenses
B. cash coming in and out of the business
C. profit, loss and assets
D. equity, assets and liabilities

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#200#150)×100(300 - 200 - 150) × 100(300#200#150)×100
B. (300#150)×100(300 - 150) × 100(300#150)×100
C. 300÷150300 ÷ 150300÷150
D. 300÷200×150300 ÷ 200 × 150300÷200×150

Question #4
Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender. What is the benefit of incorporating standards in a specification?

A. Standards will mirror the buyer's requirements entirely
B. Standards will ensure suppliers meet all buyer's requirements
C. Standards provide clear guidelines and remove ambiguity
D. Standards will ensure low pricing in tender responses

Question #5
Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

A. No, suppliers cannot be legally responsible for ESG compliance; this should be the buying organization
B. Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously
C. No, ESG is not within the scope of a contractual document and should always be treated informally
D. Yes, this helps to demonstrate the importance of compliance to ESG

Solutions: