2025 VALID L4M4 TEST PREPARATION | PROFESSIONAL 100% FREE VALID TEST L4M4 TEST

2025 Valid L4M4 Test Preparation | Professional 100% Free Valid Test L4M4 Test

2025 Valid L4M4 Test Preparation | Professional 100% Free Valid Test L4M4 Test

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Efficient Valid L4M4 Test Preparation & Leading Offer in Qualification Exams & Free PDF L4M4: Ethical and Responsible Sourcing

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CIPS Ethical and Responsible Sourcing Sample Questions (Q23-Q28):

NEW QUESTION # 23
Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO

  • A. tax
  • B. total life cycle costs
  • C. batch quantities
  • D. tariffs
  • E. exchange rate

Answer: D,E

Explanation:
Exchange rates and tariffs are associated with international sourcing.
The other options are concerns for both local sourcing and international sourcing.


NEW QUESTION # 24
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?

  • A. When the suppliers have technical expertise, and the value of the procurement is relatively high
  • B. When the specification is likely to be continuously reviewed as the contract progresses
  • C. When the value of the procurement is high and special tooling is a major factor
  • D. When the requirement is needed urgently and price is not the most important factor

Answer: A

Explanation:
Competitive tendering is ideal for high-value contracts where technical expertise is essential. This method supports responsible sourcing by ensuring quality and aligning the supplier's capabilities with the buyer's needs, as required in more complex procurement scenarios.


NEW QUESTION # 25
In which instance would multiple sourcing be the most applicable approach?

  • A. Sourcing for high-cost, strategically important components
  • B. Sourcing for the provision of a service, where close relationship management is required
  • C. Sourcing for components required at short notice
  • D. Sourcing a specialised, unique component where the supplier's knowledge is key

Answer: C

Explanation:
Multiple sourcing is particularly advantageous for ensuring quick delivery and preventing stock-outs, as it provides the flexibility to source from multiple suppliers. This approach aligns with responsible sourcing by ensuring continuity and reducing risks in the supply chain.


NEW QUESTION # 26
For what type of purchase would you use a Futures Exchange?

  • A. High value, high risk
  • B. Commodity
  • C. Capital Expenditure
  • D. Tail Spend

Answer: B

Explanation:
Futures exchanges are used to trade commodities. It's when a buyer and supplier agree a price and deal for something in the future. For example a carrot farmer may agree to sell his carrots to Gary in 3 months time when they're finished growing. It's used when the product / commodity isn't ready yet.
It's also used for hedging and other complex financial stuff- but you don't need to know that yet. Commodities and Future contracts are a big part of L5M4 to warn you though. Futures Contract Definition: Types, Mechanics, and Uses in Trading (investopedia.com)


NEW QUESTION # 27
Which of the following is considered as part of ESG?

  • A. market conditions and product lifecycle
  • B. economic and social governance
  • C. bribery, corruption and the environment
  • D. liquidity, gearing and profitability

Answer: A

Explanation:
The correct answer is bribery, corruption and the environment.
ESG stands for environmental and social governance. It's the new buzzword for CIPS and is basically everything to do with ethical procurement- so areas such as bribery and corruption are included as well as the environment.
Option 4 is incorrect as economic doesn't come into it.


NEW QUESTION # 28
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