TEST L4M4 QUESTION & RELIABLE L4M4 TEST PREP

Test L4M4 Question & Reliable L4M4 Test Prep

Test L4M4 Question & Reliable L4M4 Test Prep

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Pass Guaranteed 2025 CIPS Marvelous Test L4M4 Question

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CIPS Ethical and Responsible Sourcing Sample Questions (Q129-Q134):

NEW QUESTION # 129
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.

  • A. Define specific corrective actions for the supplier
  • B. Employing the supplier's staff for job training
  • C. Violating the terms of the supplier contract
  • D. Running supplier development programmes
  • E. Daily brainstorming meetings with the supplier

Answer: A,D

Explanation:
Defining corrective actions and running supplier development programs are effective remedial actions following an audit. These approaches support continuous improvement, aligning with responsible sourcing by helping suppliers meet ethical and performance standards.


NEW QUESTION # 130
Ivan is an investor who is looking to invest in new businesses. He is reviewing several companies and working out what his equity would be. Which of the following does Ivan need to know to calculate shareholder equity?
Select TWO.

  • A. total liabilities
  • B. total assets
  • C. net profit
  • D. net income

Answer: A,B

Explanation:
Shareholder Equity = Total Assets - Total Liabilities


NEW QUESTION # 131
Which of the following are primary sources of data? Select TWO.

  • A. trade fairs and exibits
  • B. economic indices such as PPI or CPI
  • C. phone calls with current suppliers
  • D. published price lists
  • E. market reasearch commissioned by a rival company

Answer: A,C

Explanation:
Primary data includes trade fairs and exhibits, and phone calls to current suppliers. The others are examples of secondary data.
Remember primary= you do it yourself, Secondary = someone else did it.


NEW QUESTION # 132
The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

  • A. Yes, they eliminate all the risks of buying from an overseas supplier
  • B. Yes, they are popular because all risks are avoided
  • C. No, they can reduce risks but will not eliminate them
  • D. No, they will only provide assurance about the quality of goods

Answer: C

Explanation:
Incoterms clarify responsibilities between buyers and sellers, reducing certain risks but not eliminating them entirely. Responsible sourcing requires recognising that Incoterms are only part of risk management in international trade, and other factors, such as supplier reliability and quality, must be considered.


NEW QUESTION # 133
When selecting a supplier on technical merit, its important that the supplier is a good 'functional fit' for the organisation. What is meant by 'functional fit'?

  • A. the supplier is able to work at the same technical level as the buyer
  • B. the supplier shares a common supply chain
  • C. the supplier makes a similar profit to that of the buyer
  • D. the supplier is able to adhere to the same ethical standards

Answer: A

Explanation:
The correct answer is 'the supplier is able to work at the same technical level as the buyer'. It's aboutbeing able to integrate the businesses together in terms of IT systems and such like.


NEW QUESTION # 134
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CIPS L4M4 - First-grade Test Ethical and Responsible Sourcing Question

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