Expert Answers to CIPS Exam L4M4 Questions

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CIPS Level 4 Diploma in Procurement and Supply Ethical and Responsible Sourcing

Ethical and Responsible Sourcing

Last Update May 5, 2024
Total Questions : 120

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Questions 4

Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier's liquidity? Select TWO.

Options:

current assets

current liabilities

long-term debt

shareholder's equity

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Questions 5

A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?

Options:

compliance with Codes of Conduct from professional bodies is mandatory

ethical behaviour is impossible to determine as issues such as Modern Slavery often go undetected

the buyer should ask suppliers to be accredited to ISO9001

a supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs

Discussion 0

Questions 6

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

Options:

yes- because a low rating would have a negative impact on the company's reputation

yes- because a low rating would indicate the supplier is financially unstable

no- because a low rating would not affect the quality of the products supplied