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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 2	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 3	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 4	Understand the key processes that can be applied to the analysis of potential external suppliers:

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CIPS Ethical and Responsible Sourcing Sample Questions (Q238-Q243):

NEW QUESTION # 238
Scott is a procurement manager who is evaluating a bid from a supplier to provide a new IT system to his office that will be used by 100 employees. He is considering the total life-cycle costs. Which of the following should Scott consider? Select THREE

A. Maintenance
B. Acquisition Costs
C. Added value
D. Functional Fit
E. Training

Answer: B,C,E

Explanation:
total life-cycle costs include; acquisition costs, maintenance and training.
Added value and functional fit are quality criteria that should also be evaluated when selecting a supplier, but do not fall under total life-cycle costs.
Note: total life cycle costs and whole life asset management are the same thing. You may see both terms used in the exam. I think CIPS is moving more towards Whole Life Asset Management now as the preferred vocabulary but they're the same thing.

NEW QUESTION # 239
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?

A. Yes- a low gearing ratio shows that the business is solvent and can deal with supply chain disruptions easily
B. Yes- a low gearing ratio means the company's finances are made up of equity rather than debt
C. No- a low gearing shows you that a company isn't likely to be profitable
D. No- a low gearing suggests that the company is financed by long-term debt rather than equity

Answer: B

Explanation:
the correct answer is 'Yes- a low gearing ratio means the company's finances are made up of equity rather than debt'.
Remember low gearing = good (based on equity), high gearing = bad (based on debt). Anything over 50% is considered high.
The two no answers are therefore incorrect and you can discount these straight away. The other yes answer is one of those answers which COULD be true, but isn't always true, and we'd need more information to know for sure. When you get options like this there will be one that is always right and one which is sometimes right
- so always pick the always right one.
Dealing with supply chain disruptions is complex, and depending what the disruption is, how big it is, what the industry is etc determines whether a supplier can handle it or not. Because there's more factors to consider than just gearing, this isn't the right answer.

NEW QUESTION # 240
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?

A. yes- because a low rating would indicate the supplier is financially unstable
B. no- because a low credit rating would have a negative impact on the supply chain
C. yes- because a low rating would have a negative impact on the company's reputation
D. no- because a low rating would not affect the quality of the products supplied

Answer: A

Explanation:
The correct answer is 'yes- because a low credit rating would indicate the supplier is financially un-stable'.
The two options beginning with no should automatically be discounted. The other option is incor-rect because credit ratings are private and would therefore not affect reputation.

NEW QUESTION # 241
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.

A. Violating the terms of the supplier contract
B. Employing the supplier's staff for job training
C. Running supplier development programmes
D. Define specific corrective actions for the supplier
E. Daily brainstorming meetings with the supplier

Answer: C,D

Explanation:
Defining corrective actions and running supplier development programs are effective remedial actions following an audit. These approaches support continuous improvement, aligning with responsible sourcing by helping suppliers meet ethical and performance standards.

NEW QUESTION # 242
What are the risks of outsourcing?
* Loss of control of a project
* Loss of assets
* Loss of future business opportunities
* Loss of private information

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

Answer: C

Explanation:
Outsourcing can lead to a loss of control over certain aspects of a project, as the organization relies on external parties to deliver services or products. Additionally, sharing sensitive information with third-party vendors increases the risk of data breaches or loss of private information. While there may be concerns about assets or future business opportunities, the primary risks in outsourcingrelate to control and information security.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 3.2: Risks Associated with Outsourcing

NEW QUESTION # 243
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100% Pass Quiz 2025 CIPS L4M4 Useful Free Dumps

CIPS L4M4 Exam Syllabus Topics:

Famous L4M4 Training Brain Dumps present the most useful Exam Materials - PracticeMaterial

CIPS Ethical and Responsible Sourcing Sample Questions (Q238-Q243):