Cips testinside download Latest L4m4 Questions by Lorelai q0 vce pdf

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Exam Name:	Ethical and Responsible Sourcing
Exam Code:	L4M4 Dumps
Vendor:	CIPS	Certification:	CIPS Level 4 Diploma in Procurement and Supply
Questions:	301 Q&A's	Shared By:	lorelai

Question 52

A procurement manager has developed some reports in order to analyse total company expenditure on bought-in goods and services from external suppliers. Expenditure information by product category or supplier can achieve which of the following? Select TWO that apply.

Options:

Help the organisation set its marketing strategy

Highlight opportunities for negotiating better prices and reducing costs with suppliers

Provide information on costs and trends to compare with previous time periods

Provide analysis to help with planning production schedules

Identify how obsolete stock items can be disposed of in a sustainable way

Discussion

Question 53

Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

Options:

Yes, because this rating indicates poor financial management practices

No, because a credit rating is only one financial tool to be used in determining financial competence

No, because a credit rating is not an appropriate decision-making tool

Yes, because this rating means that insolvency or liquidation is imminent

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Question 54

A 'carnet' provides evidence of the origin of goods shipped in an international trade transaction. Is this statement correct?

Options:

It is a widely used import document that confirms the origin of goods

It is a document that allows the temporary free movement of goods

It is only used when exporting goods from Europe and confirms the country of origin

It is a type of insurance cover to protect against loss of goods in transit

Discussion

Question 55

A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

Options:

Yes- a low gearing ratio means the company's finances are made up of equity rather than debt

Yes- a low gearing ratio shows that the business is solvent and can deal with supply chain disruptions easily

No- a low gearing suggests that the company is financed by long-term debt rather than equity

No- a low gearing shows you that a company isn't likely to be profitable