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L4M4 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

Question # 54

If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

Options:

A.

Only work with known suppliers

B.

Complete Due-Diligence on all new suppliers

C.

Only work with suppliers who have a published Anti-Slavery policy

D.

Complete formal tenders to find the best suppliers

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Question # 55

The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstances?

Options:

A.

Yes, so that the local pest control sector can decide between them who should bid

B.

No, because they might receive too many irrelevant proposals which may delay the assessing process

C.

No, because international vendors must also be notified of the opportunity

D.

Yes, they must seek as many bids as possible, even if it takes longer

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Question # 56

Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?

Options:

A.

use the Return on Investment Ratio

B.

do an Acid Test

C.

work out the supplier's EBITDA

D.

work out the supplier's gearing ratio

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Question # 57

Which of the following factors are typically considered when assessing a supplier's financial capacity?

Options:

A.

The supplier’s profitability and asset levels

B.

The price quoted in the request for quotation

C.

The supplier’s costing methods and markup percentage

D.

The supplier’s compliance with regulations for minimum wages

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Question # 58

A company has actively included supporting of disadvantaged groups within their ESG commitment. Which of the following groups are considered disadvantaged?

Options:

A.

endangered species

B.

pregnant women and children

C.

international suppliers

D.

Muslims

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Question # 59

In which instance would multiple sourcing be the most applicable approach?

Options:

A.

Sourcing for the provision of a service, where close relationship management is required

B.

Sourcing a specialised, unique component where the supplier's knowledge is key

C.

Sourcing for high-cost, strategically important components

D.

Sourcing for components required at short notice

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Question # 60

Damian is a procurement professional in the Public Sector. He has recently run a competition to source new uniforms for hospital staff and has decided on a suitable supplier. Should Damian con-duct post tender negotiation with the supplier?

Options:

A.

yes- post-tender negotiation may result in a lower price and thus better value for money

B.

yes- all tender processes should include post-tender negotiation

C.

no- this isn't necessary as Damian has selected the most appropriate supplier

D.

no- it would be against the law for Damian to do this

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Question # 61

Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.

Options:

A.

Professional magazines

B.

Focus groups

C.

Economic indices

D.

Supplier websites

E.

Direct conversations

F.

Supplier interviews

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Question # 62

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

Options:

A.

Violating the terms of the supplier contract

B.

Define specific corrective actions for the supplier

C.

Daily brainstorming meetings with the supplier

D.

Employing the supplier’s staff for job training

E.

Running supplier development programmes

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Question # 63

Ramesh is an IT category manager within the UK’s National Health Service and is responsible for the procurement of a new high-value network system, which will spread across multiple doctors' practices and community health centres. Ramesh has reviewed different tender approaches and concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?

Options:

A.

Direct negotiations occur prior to suppliers submitting their offer

B.

The contract will be awarded strictly on pricing criteria

C.

Suppliers responding to the tender are pre-qualified

D.

It is only relevant when there are few suppliers in the market

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Exam Code: L4M4
Exam Name: Ethical and Responsible Sourcing
Last Update: Jun 15, 2025
Questions: 217
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