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CIPS L4M4 Exam Syllabus Topics:
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Quiz CIPS - Trustable L4M4 - Ethical and Responsible Sourcing Exam Simulator Free
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CIPS Ethical and Responsible Sourcing Sample Questions (Q247-Q252):
NEW QUESTION # 247
Damian is a procurement professional in the Public Sector. He has recently run a competition to source new uniforms for hospital staff and has decided on a suitable supplier. Should Damian con-duct post tender negotiation with the supplier?
- A. yes- post-tender negotiation may result in a lower price and thus better value for money
- B. no- this isn't necessary as Damian has selected the most appropriate supplier
- C. no- it would be against the law for Damian to do this
- D. yes- all tender processes should include post-tender negotiation
Answer: C
Explanation:
Damian works in the Public Sector- it is against the law for the public sector to conduct 'post tender negotiation' after a contract has been awarded. This is because it's not transparent and equal opportunities, which are founding principles of public sector procurement.
Private sector can do whatever they want. They can do post-tender negotiations.
NOTE: this is currently the rules as per Public Contract Regulations 2015. These are being superseded in October by new legislation. The study guide doesn't mention this, but it's happening. At the time of writing (January 2023) we don't have the full details about what the new rules are but I doubt they will change on this particular topic. You can find out more about the changes to Public Sector Procurement here: Transforming Public Procurement - GOV.UK (www.gov.uk)
NEW QUESTION # 248
Added value can be objectively defined. Is this sentence TRUE?
- A. Yes- added value is the same for all organisations
- B. Yes- added value should be assessed along with price
- C. no - added value may change from one company to another
- D. no- added value is always intangible
Answer: C
Explanation:
The correct answer is 'no - added value may change from one company to another'.
Added value is very subjective. What one person thinks is excellent added value, another may not rate highly.
For example one buyer may consider a supplier having good brand reputation as added value, but another might not care.
The other no answer is incorrect because added value can be tangible or intangible. Tangible means you can touch and see it and intangible means you can't.
NEW QUESTION # 249
Bribery is considered an unethical business practice. What constitutes a bribe?
- A. anything that is of value to the recipient
- B. something that has monetary value
- C. anything that can be traded illegally
- D. something of significant monetary value
Answer: A
Explanation:
A bribe is anything that is of value to the recipient. It's commonly money, but could also be an item such as a car, or doing someone a favour such as hiring their son.
NEW QUESTION # 250
Scott is a procurement manager who is evaluating a bid from a supplier to provide a new IT system to his office that will be used by 100 employees. He is considering the total life-cycle costs. Which of the following should Scott consider? Select THREE
- A. Maintenance
- B. Functional Fit
- C. Acquisition Costs
- D. Added value
- E. Training
Answer: C,D,E
Explanation:
total life-cycle costs include; acquisition costs, maintenance and training.
Added value and functional fit are quality criteria that should also be evaluated when selecting a supplier, but do not fall under total life-cycle costs.
Note: total life cycle costs and whole life asset management are the same thing. You may see both terms used in the exam. I think CIPS is moving more towards Whole Life Asset Management now as the preferred vocabulary but they're the same thing.
NEW QUESTION # 251
The bill of lading is one of the main documents associated with sea freight within international sourcing.
Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.
- A. It provides evidence of the country of origin of the goods
- B. It provides evidence of the title of ownership of the goods
- C. It provides evidence guaranteeing the use of Incoterms on the goods
- D. It provides evidence that the goods are fully insured in transit
- E. It provides evidence of the contract of carriage for the goods
Answer: B,E
Explanation:
The bill of lading serves as both a receipt of goods and a document of title, which means it confirms the contract of carriage and can transfer ownership. Responsible sourcing in international trade requires precise documentation, which is why the bill of lading is critical in verifying both carriage and title.
NEW QUESTION # 252
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