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CIPS Ethical and Responsible Sourcing Sample Questions (Q78-Q83):

NEW QUESTION # 78
Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities

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

Answer: B,D

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 # 79
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?

A. asset management
B. supplier selection
C. develop strategy
D. contract award

Answer: B

Explanation:
At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk).
At develop strategy stage you're not even looking at suppliers yet- you're just deciding what you need. At contract award and asset management it's too late.
CIPS procurement cycle - Procurement Supply Cycle | CIPS

NEW QUESTION # 80
Weighted points systems can be applied to evaluate and compare potential suppliers. For which of the following factors would it be appropriate to use this method?
* Financial stability
* Supplier reliability
* Market demand
* Negotiation styles

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

Answer: B

Explanation:
Financial stability and supplier reliability are quantifiable factors suited to weighted points systems, allowing procurement professionals to objectively assess and compare suppliers. This method aligns with ethical sourcing practices by promoting fairness and transparency in supplier selection.

NEW QUESTION # 81
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally.
Which of the following is described by Incoterms? Select THREE.

A. who is responsible for making duty and tariff arrangements
B. how long the transportation will take
C. what form of transportation will be used
D. which party arranges insurance
E. how much the transportation will cost

Answer: A,C,D

Explanation:
Incoterms describe who out of the buer and seller; organises transport and what type of transport this is, who pays for insurance, and who organises duty / tariff arrangements when the goods go through customs. See p.131. Note- some students report a lot of questions on Incoterms in the exam, some say they only had 1. If you can, I'd learn them just to be safe.

NEW QUESTION # 82
Which of the following would you expect to find in an Invitation to Tender? Select THREE

A. risk assessments
B. awarding body
C. deadline(Correct)
D. pricing schedule
E. qualifications required

Answer: B,E

Explanation:
An ITT would include details on the awarding body (usually a brief overview of the buyer), the deadline (bids must be received by a certain date) and qualifications required (such as ISO requirements or competency certificates of staff members if it's a service contract). You wouldn't find pricing schedules in an ITT (this would be provided by the supplier in response to the ITT), nor would you find risk assessments (a supplier might be asked to provide one as part of the quality assessment of the tender though).
Invitation To Tender Simply Explained I Thornton & Lowe (thorntonandlowe.com)

NEW QUESTION # 83
......

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L4M4 Exam Vce Test Simulator & Pass-Sure L4M4 Online Test Pass Success

Quiz CIPS - L4M4 - Ethical and Responsible Sourcing –Efficient Vce Test Simulator

CIPS Ethical and Responsible Sourcing Sample Questions (Q78-Q83):

L4M4 Vce Test Simulator - Pass Guaranteed L4M4 - First-grade Ethical and Responsible Sourcing Online Test

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