LATEST L4M4 TEST PDF - MINIMUM L4M4 PASS SCORE

Latest L4M4 Test Pdf - Minimum L4M4 Pass Score

Latest L4M4 Test Pdf - Minimum L4M4 Pass Score

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • 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.
Topic 2
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential 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 the key processes that can be applied to the analysis of potential external suppliers:

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Minimum L4M4 Pass Score - New L4M4 Exam Answers

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CIPS Ethical and Responsible Sourcing Sample Questions (Q197-Q202):

NEW QUESTION # 197
What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

  • A. Liquidity ratio
  • B. Profitability ratio
  • C. Earnings per share
  • D. Dividend per share

Answer: A

Explanation:
Liquidity ratios, such as the current and quick ratios, evaluate a company's ability to meet short-term liabilities with current assets. This metric is crucial for assessing a supplier's financial stability, ensuring continuity and reliability in the supply chain, which aligns with ethical and responsible sourcing principles.


NEW QUESTION # 198
Which of the following is not a indices that measures economic data?

  • A. GDP
  • B. CPI
  • C. ISO
  • D. PPI

Answer: C

Explanation:
ISO isn't an indices- it stands for 'International Labour Association'.
The others are all indices that measure economic data; consumer price index, producer price index and gross domestic product.


NEW QUESTION # 199
Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?

  • A. Yes- audits always uncover ethical violations such as modern day slavery
  • B. No- Ali should simply ask the supplier's about their ethical practices
  • C. No- audits will only reveal financial issues not ethical ones
  • D. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations

Answer: D

Explanation:
The correct answer is 'yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations'. The other options are incorrect:
1) you can do many types of audit- financial, ethical, Health and Safety etc
2) asking a supplier about their ethical practices isn't likely going to get you accurate information. They'll just tell you what they think you want to hear
3) audits are great- but they don't ALWAYS uncover issues. Always is the key word in that sentence which makes it incorrect.


NEW QUESTION # 200
ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors. What should ABC do?

  • A. Terminate the contract
  • B. Research alternative suppliers
  • C. Seek compensation
  • D. Recommend remedial action

Answer: D

Explanation:
ABC should do a 'root cause analysis' to find out where the issue has come about, and why. From there, once they know what the breach is and how serious it is, they can suggest corrective action.
They can't jump straight to terminating the contract or seeking damages as it's not the supplier itself but rather the subcontractor. Also that would be really hasty considering we don't know what the issue is and what the market conditions are like. That supplier may be the only one who can provide the product. We also don't know if the supplier knows about the issue themselves.


NEW QUESTION # 201
What is a major benefit to using Incoterms when sourcing goods internationally?

  • A. it ensures value for money
  • B. it ensures ethical business practices
  • C. it replaces lengthy contractual clauses
  • D. it replaces the need for insurance

Answer: C

Explanation:
Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it's completely random how many you'll get on this topic.


NEW QUESTION # 202
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