Before you begin ✍️
You are about to practice the questions set for
CIPS-Ethical and Responsible Sourcing L4M4 Paper 20.
Please put away any distractions and focus all your efforts on passing.
⏱️Time limit: 1 hour 30 minutes
At the end of your examination practice, you will
📝 View your grade
✅ View the correct answers
NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification.
To begin your exam practice,
wait a few seconds for the start button to appear,
then tap the START button.
"We're rooting for you all the way!" All the best. 😃
1.
What is considered the most suitable approach to achieving sustainability?
2.
What differentiates open procedures from other contract award methods?
3.
As a procurement officer for a large organization, a supplier reaches out via social media with an offer to discuss a recent open opportunity and mentions a reward if you assist them. You accept. Was this the correct decision?
4.
Which are examples of secondary sources of market and supplier data? Select two.
5.
What information from a credit rating agency report would be helpful for procurement professionals? Select two.
6.
Young's Tool Manufacturing plans to purchase a new CEO chair with their corporate design. The supplier is from another country, and documentation is needed for customs clearance. What type of documentation should be provided?
7.
Why do many organizations prefer a multi-sourcing approach? Which advantage does it provide?
8.
What implication does the threat of bribery have for responsible sourcing?
9.
Which of the following traits are commonly necessary in public sector sourcing procedures?
- Prioritizing long-term supplier partnerships where feasible
- Ensuring service levels align with both cost and value criteria
- Keeping all communications between suppliers and buyers confidential
- Typically requiring a competitive tendering process
10.
A company has chosen to delegate the provision of internal staff training to an external service provider. The contract includes a list of key performance indicators. What advantage does this offer?
11.
Is a reverse e-auction the best method for procuring items at competitive prices?
12.
You are asked to purchase 500 pens from a specific brand and use a weighted point system for evaluation. Is this method appropriate?
13.
Why include standards in specifications for high-value medical equipment maintenance?
14.
What is the Triple Bottom Line (TBL) concept?
15.
What is the purpose of regulators in an oligopoly market?
16.
How can a company mitigate risks from exchange rate fluctuations in international sourcing? Select two.
17.
Is single sourcing suitable for small orders that do not justify splitting between suppliers?
18.
What figures are usedWhich figures are required to assess an organization’s liquidity position?to assess liquidity?
19.
In ratio analysis, what does gearing refer to?
20.
What best describes a supplier using prisoner labor paid fairly for work?
21.
What environmental factors can lead to price reductions in commodity markets? Select two.
22.
Why choose multiple sourcing for a product?
23.
Which of the following could be seen as a disadvantage of using a competitive tendering process?
- Results in the lowest price being offered only if price is the main deciding factor.
- Attracts more bidders, but with less motivation for improved performance.
- Reduces the amount of paperwork and administrative workload for the buyer.
- Is effective only when the buyers themselves can define the requirements.
24.
What type of sourcing arrangement is best for standard products with many capable suppliers where no innovation is needed and leverage is sought for best value?
25.
When enforcing compliance, buyers may seek external endorsements. Which sources are suitable for this? Select two.
26.
How is the current (working capital) ratio calculated?
27.
What part of a supplier’s quotation relates to production capacity?
28.
What import documentation is crucial to confirm a sale?
29.
You’ve been tasked with establishing key performance indicators (KPIs) for your local stationery supplier, and you’ve come up with the following criteria:
- Deliver all orders within one hour.
- Collect any returns within one hour.
Are these KPIs suitable?
30.
Jack Green is planning to use competitive tendering to source a new product for the domestic market, developed by the customer research department. Jack intends to use an open tender process. What should Jack consider when using an open tender?
31.
Which international standard can help manage the control of gifts and hospitality to prevent corruption?
32.
A company has been sourcing goods from a key supplier for a year without quality issues. However, halfway through the contract, it is discovered that some raw materials come from a country known for widespread labor exploitation. What is the biggest risk for the company?
33.
Ramesh is an IT category manager for the UK’s National Health Service, responsible for procuring a high-value network system to be used across several health centers. He prefers using a restricted tendering process. What must Ramesh consider in this approach?
34.
Why do organizations set transfer prices?
35.
Which ratio helps determine an organization’s ability to generate enough cash to meet its obligations?
36.
The Consumer Price Index (CPI) tracks market stability and health. Which of the following are aspects of CPI? Select two that apply.
37.
Which of the following are recognized benefits of outsourcing? Select the appropriate combination
- Increased labor opportunities
- Greater expertise by leveraging specialists
- Reduced turnaround times
- Enhanced focus on core activities
38.
Which of the following would be crucial if a company seeks long-term success through ethical and responsible sourcing?
- Supplier development
- Supply chain transparency
- Opportunistic buying
- Just-in-case inventory management
