CIPS L4M4 Ethical and Responsible Sourcing Online Training
CIPS L4M4 Online Training
The questions for L4M4 were last updated at Feb 05,2025.
- Exam Code: L4M4
- Exam Name: Ethical and Responsible Sourcing
- Certification Provider: CIPS
- Latest update: Feb 05,2025
A balance sheet will show a company’s assets, liabilities and shareholder equity.
What is share-holder equity?
- A . the profit from sales once tax has been deducted
- B . the amount of money held in the company’s bank account
- C . the owners’ residual claim once all debt has been paid
- D . the amount of money from retained earnings
If a company is described as ‘liquid’ what does this mean?
- A . the company is funded on equity rather than debt
- B . the company spends a lot of money
- C . the company is highly profitable
- D . the company has enough money to pay short-term liabilities
Which of the following would be considered a strategic sourcing activity?
- A . an office ordering copier paper
- B . a bakery ordering eggs
- C . a factory ordering a new machine
- D . a restaurant ordering plastic cups
What type of relationship should a buyer seek when making strategic sourcing for their business?
- A . transactional
- B . collaborative
- C . arms-length
- D . partnership
Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits.
Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO
- A . cakes
- B . cereal bars and biscuits
- C . cleaning
- D . facilities management
Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?
- A . improved quality control
- B . less inventory
- C . killset of supplier is higher
- D . threat of substitutions
Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing
strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down
his supplier base and purchase from one supplier.
Which type of sourcing arrangement has Ramesh began?
- A . dual
- B . multiple
- C . single
- D . sole
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass.
What relationship style would be best suited?
- A . collaborative
- B . transactional
- C . adversarial
- D . non-critical
In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony.
Which negotiation tactic is the supplier using?
- A . competitive
- B . collaborative
- C . compromising
- D . accommodating
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.
- A . current assets
- B . current liabilities
- C . long-term debt
- D . shareholder’s equity
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