L4M4 CLEARER EXPLANATION - L4M4 VALID PRACTICE MATERIALS

L4M4 Clearer Explanation - L4M4 Valid Practice Materials

L4M4 Clearer Explanation - L4M4 Valid Practice Materials

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Tags: L4M4 Clearer Explanation, L4M4 Valid Practice Materials, Exam L4M4 Simulator Online, Valid L4M4 Practice Materials, L4M4 Test Answers

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CIPS Ethical and Responsible Sourcing Sample Questions (Q94-Q99):

NEW QUESTION # 94
How can a buyer monitor a supplier's ethical workforce standards throughout a long-term contract?

  • A. Request a completed self-assessment by the supplier on a monthly basis
  • B. Commission periodic audits by specialist third parties to highlight any malpractice
  • C. Check the International Labour Organisation's database regularly for information specifically about that supplier
  • D. Contact management directly on a periodic basis, as stipulated in contract terms

Answer: B

Explanation:
Conducting periodic audits by third-party specialists is a reliable way to monitor compliance with ethical standards, as these audits provide an objective assessment. This aligns with ethical sourcing practices, as it promotes accountability and ensures continuous adherence to agreed-upon standards.


NEW QUESTION # 95
Philip is a procurement manager at XYZ Company which imports raw materials from abroad. Sup-pliers provide quotes to Philip in their local currency. Is this the best way to reduce the risk to XYZ Company of currency fluctuations?

  • A. no- quoting in the supplier's currency does not affect the risk to the buying organisation
  • B. no- quoting in the supplier's currency increases the risk for the buyer
  • C. yes- this puts the risk on the supplier
  • D. yes- this means the price won't go up or down

Answer: B

Explanation:
The correct answer is 'no- quoting in the supplier's currency increases the risk for the buyer'. This questions comes up in a variety of formats in the exam. Remember; if the price is in your own currency (most examples in the exam are given in £) there is less risk than if the prices are quoted in a foreign currency. This is because exchange rates fluctuate; if the price is in £ you always know what you're paying, if it's in another currency the price can change daily depending on if the exchange rate compared to £ has gone up or down.


NEW QUESTION # 96
Which of the following characteristics are likely to be required within sourcing processes undertaken in the public sector?
* An emphasis on long-term supplier relationships where possible
* Maintaining service levels within value and cost parameters
* All dealings between buyers and suppliers are kept confidential
* A competitive tendering process is usually encouraged

  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 2 and 4 only

Answer: D

Explanation:
Public sector sourcing prioritises maintaining service levels within budget constraints and often mandates competitive tendering to promote transparency and fairness. These principles align with ethical sourcing practices, ensuring responsible expenditure and fair competition among suppliers.


NEW QUESTION # 97
Which of the following would you expect to find in an Invitation to Tender? Select THREE

  • A. awarding body
  • B. deadline
    (Correct)
  • C. risk assessments
  • D. pricing schedule
  • E. qualifications required

Answer: A,E

Explanation:
An ITT would include details on the awarding body (usually a brief overview of the buyer), the deadline (bids must be received by a certain date) and qualifications required (such as ISO requirements or competency certificates of staff members if it's a service contract). You wouldn'tfind pricing schedules in an ITT (this would be provided by the supplier in response to the ITT), nor would you find risk assessments (a supplier might be asked to provide one as part of the quality assessment of the tender though).
Invitation To Tender Simply Explained I Thornton & Lowe (thorntonandlowe.com)


NEW QUESTION # 98
ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors. What should ABC do?

  • A. Research alternative suppliers
  • B. Terminate the contract
  • C. Recommend remedial action
  • D. Seek compensation

Answer: C

Explanation:
ABC should do a 'root cause analysis' to find out where the issue has come about, and why. From there, once they know what the breach is and how serious it is, they can suggest corrective action.
They can't jump straight to terminating the contract or seeking damages as it's not the supplier itself but rather the subcontractor. Also that would be really hasty considering we don't know what the issue is and what the market conditions are like. That supplier may be the only one who can provide the product. We also don't know if the supplier knows about the issue themselves.


NEW QUESTION # 99
......

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