VALID CIPS L4M4 EXAM FORUM & VALID L4M4 MOCK EXAM

Valid CIPS L4M4 Exam Forum & Valid L4M4 Mock Exam

Valid CIPS L4M4 Exam Forum & Valid L4M4 Mock Exam

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Topic 2
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 3
  • Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 4
  • Understand the key processes that can be applied to the analysis of potential external suppliers:

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CIPS Ethical and Responsible Sourcing Sample Questions (Q121-Q126):

NEW QUESTION # 121
In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?

  • A. Gearing Ratio
  • B. Acid Test
  • C. Gross Profit Margin
  • D. Return on Equity

Answer: D

Explanation:
"Meet current liabilities" is a posh way of saying "can you pay your bills". You're therefore looking for a liquidity ratio- a ratio that looks at assets vs liabilities (i.e. money in the bank vs money owed out). The Acid Test is a liquidity ratio. It's sometimes called the 'quick ratio'. Both terms come up on the exam. The other options are financial ratios but aren't for liquidity.


NEW QUESTION # 122
What are the risks of outsourcing?
* Loss of control of a project
* Loss of assets
* Loss of future business opportunities
* Loss of private information

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

Answer: C

Explanation:
Outsourcing can lead to a loss of control over certain aspects of a project, as the organization relies on external parties to deliver services or products. Additionally, sharing sensitive information with third-party vendors increases the risk of data breaches or loss of private information. While there may be concerns about assets or future business opportunities, the primary risks in outsourcingrelate to control and information security.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 3.2: Risks Associated with Outsourcing


NEW QUESTION # 123
When would a procurement professional use the Pareto principle?

  • A. when considering changing a supplier
  • B. when appraising a supplier
  • C. when looking at whole-life-cycle costs
  • D. when conducting a value analysis

Answer: A

Explanation:
The Pareto Principle can be used when considering changing a supplier. It helps to categories suppliers by how strategically important the item is that they provide to the business.


NEW QUESTION # 124
Which of the following is a strategic cost associated with outsourcing cyber-security from an in-house IT function to a specialist supplier?

  • A. Loss of financial resources due to regulation
  • B. Loss of expertise within business
  • C. Loss of influence over prioritisation of tasks
  • D. Loss of informal relationship with cyber experts

Answer: B

Explanation:
Outsourcing critical functions like cybersecurity can lead to a loss of in-house expertise, which is a strategic cost. This loss may impact the organization's ability to respond swiftly to security threats, innovate, and maintain control over sensitive operations. Retaining core competencies is vital for sustaining competitive advantage and ensuring long-term resilience.
Exact Extract from Study Guide:
"Outsourcing core activities risks - loss of in-house skill, loss of key staff to competitors, risk that supplier cannot be found, loss of control over operating activities, risk of loss of control over confidential information
/IP.


NEW QUESTION # 125
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. cereal bars and biscuits
  • B. cleaning
  • C. facilities management
  • D. cakes

Answer: B,C

Explanation:
Cleaning and Facilities Management are the most appropriate items to outsource. They would not outsource the making of confectionary products as this is the 'core' business.
See p.4 for "what is outsourcing?"


NEW QUESTION # 126
......

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