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CIPS L4M4 Exam Syllabus Topics:
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CIPS Ethical and Responsible Sourcing Sample Questions (Q99-Q104):
NEW QUESTION # 99
Compared with single sourcing, what is a key advantage to dual or multiple sourcing? Select TWO
Answer: B,D
Explanation:
The correct answers are 'it is easy to drive down costs' (as you can pit the suppliers against each other) and
'low risk of failure to supply' (if one supplier can't provide what you need, the other supplier might be able to).
Economies of scale and supplier loyalty are advantages of single-sourcing.
There is a risk of failure to supply is a risk associated with single sourcing.
There's a useful table of advantages and disadvantages of single / multi sourcing on p.22. Types of sourcing is a key topic for the exam.
NEW QUESTION # 100
A Bill of Exchange is an important document used when importing goods into a country from abroad. What is the purpose of this document?
Answer: C
Explanation:
A Bill of Exchange is a payment instruction - it says who will pay whom and when.
Bill of Exchange Definition: Examples and How It Works (investopedia.com)
NEW QUESTION # 101
Under what circumstances can a buyer reduce timescales for a tender in the Public Sector?
Answer: D
Explanation:
If tenders are received by electronic submission exclusively, the buyer can reduce the timescale. On average the time for a standard tender submission can be reduced by 5 days if bids are submitted electronically.
*Note* this is based off current PCR Regs 2015 which are being superseded in October 2024 by new legislation. We currently don't know what the new regs will say on this. If it's different, my best guess is CIPS will remove any question about it from their exam- because the study guide would be wrong and that would lead to complaints.
NEW QUESTION # 102
What is the best way to prevent potential issues of conflicts of interest?
Answer: C
Explanation:
The best way to deal with potential Conflicts of Interest is to openly declare these. Just because you have a relationship with someone doesn't mean this is going to be an issue or lead to fraud, but it is a good idea to keep a written record of these.
It wouldn't be a risk register, because how can you rate someone's risk of doing something dodgy? Risk registers are for objective risks such as Health and Safety.
NEW QUESTION # 103
Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.
Answer: B,C,E
Explanation:
Employee working conditions, a code of ethics, and a carbon emissions policy are all indicative of a supplier's commitment to ESG standards. Assessing these factors aligns with responsible sourcing practices, which prioritize sustainability and ethical considerations.
NEW QUESTION # 104
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