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CIPS L4M4 Exam Syllabus Topics:

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

CIPS Ethical and Responsible Sourcing Sample Questions (Q83-Q88):

NEW QUESTION # 83
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?

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

Answer: B

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 # 84
Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers. Which of the following is Luke now likely to know about the marketplace? Select THREE

A. acceptable lead times
B. amount of product competition
C. samples of the product
D. exact costs of the item he's procuring
E. expected changes in the marketplace

Answer: A,B,E

Explanation:
The correct answers are; lead times, product competition and changes in the marketplace.
You wouldn't expect to receive samples or costings from a Request for Information - rather, these should be expected as part of the Tender Competition

NEW QUESTION # 85
The gross profit of a company can be calculated by using a simple formula. What is this?

A. total revenue - cost of sales
B. assets - liabilities
C. cost of sales - fixed assets
D. debt owed - total sales

Answer: A

Explanation:
gross profit = total revenue - cost of sales.
Learn all you can about financial ratios and financial statements for the exam- it's a very common topic

NEW QUESTION # 86
Which of the following is a regulatory body which protects the rights of workers?

A. WWF
B. FairTrade
C. ISO
D. ILO

Answer: D

Explanation:
ILO = the International Labour Organisation.
ISO is the International Standardisation Organisation- they also come up in this exam.
Fair Trade is about paying suppliers properly.
WWF is the World Wildlife Foundation, or if you watched wrestling in the 90s, the original WWE. You do not need to know about wildlife or wrestling for this exam.

NEW QUESTION # 87
Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities

A. net profit
B. long term debt
C. gross sales
D. shareholder equity

Answer: A,B

Explanation:
Gearing measures how much of an organisation's long-term funding is made up of long term debt and loans.
Therefore the correct answers are 'shareholder equity' and 'long term debt'.
There are many question about financial ratios that can come up on the exam. If you're unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I'm not associated with the makers of this video but think they're really good at explaining things to beginners) Gearing Ratio explained (youtube.com)

NEW QUESTION # 88
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