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  • CIPS Level - Diploma in Procurement and Supply Module 4 - Ethical and Responsible Sourcing

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    Jalal Quteineh
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    This document contains 10 sample exam questions for the CIPS Level Diploma in Procurement and Supply Module 4 on ethical and responsible sourcing. The questions cover topics like identifying supplier risks, contract award approaches, supplier selection criteria, and financial ratio analysis. The correct answers are identified with a [key].

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    L4M4

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    This document contains 10 sample exam questions for the CIPS Level Diploma in Procurement and Supply Module 4 on ethical and responsible sourcing. The questions cover topics like identifying supplier risks, contract award approaches, supplier selection criteria, and financial ratio analysis. The correct answers are identified with a [key].

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    © All Rights Reserved
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    3K views5 pages

    CIPS Level - Diploma in Procurement and Supply Module 4 - Ethical and Responsible Sourcing

    Uploaded by

    Jalal Quteineh
    This document contains 10 sample exam questions for the CIPS Level Diploma in Procurement and Supply Module 4 on ethical and responsible sourcing. The questions cover topics like identifying supplier risks, contract award approaches, supplier selection criteria, and financial ratio analysis. The correct answers are identified with a [key].

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 5

    CIPS Level – Diploma in Procurement and

    Supply
    Module 4 – Ethical and Responsible Sourcing

    SAMPLE EXAM QUESTIONS


    OBJECTIVE RESPONSE QUESTIONS AND ANSWERS

    The correct answer will be identified as [key]

    Leading global excellence in procurement and supply


    L4M4 Sample Exam Questions Dec 2018
    Q1. Which of the following is the most effective measure for a procurement manager to identify potential risks in
    relation to a supplier's exposure to increases in interest rates?

    a. Acid test

    b. Gearing

    c. Inventory days

    d. Turnover

    LO: 2

    AC: 2.3

    Q2. A procurement organisation has a complex and very high spend requirement for which there are many
    suppliers, all with capacity and a desire to deliver the contract. Once awarded, the contract can be easily switched
    to an alternative source of supply. Price is just one consideration but other more qualitative factors are also
    important in deciding which supplier to award the contract to.

    Which of the following describes the characteristics of the item and provides the best method of awarding
    the contract?

    a. Leverage and competitive tender

    b. Strategic and eAuction

    c. Routine and supplier negotiations

    d. Bottleneck and framework agreement

    LO: 3

    AC: 3.1

    Q3. Which of the following is the most useful to assess a supplier's liquidity?

    a. Current ratio

    b. Earnings per share

    c. Profit margin

    d. Return on equity

    2
    L4M4 Exam Exemplar Questions Dec 2018
    LO: 1

    AC: 1.3

    Q4. Which of the following Incoterms applies to any form of transportation and carries the highest risk profile for
    the buyer?

    a. Free on board (FOB)

    b. Delivered duty paid (DDP)

    c. Ex-works (ExW)

    d. Cost insurance and freight (CIF)

    LO: 3

    AC: 3.2

    Q5. A major public body has a requirement to award a high value services contract. Procurement for the body is
    regulated. It has conducted market analysis and has identified many potential suppliers that could potentially
    deliver the contract. It has a clear specification. It is an important contract but the requirement is not urgent. The
    most important driver for the organisation is to find the best supplier. Given all of these factors which of the
    following approaches is likely to be the most appropriate?

    a. Direct award

    b. Restricted tendering

    c. Negotiated procedure

    d. Competitive dialogue

    LO: 1

    AC: 1.2

    Q6. Hi-Tech Products Inc (HTPI) has developed a new product, the patent for which has been registered worldwide.
    It has identified target customers and potential distributors for the product to be sold around the world. HTPI
    realises that profit margins will be tight and so finding the best suppliers will be key. It is open to ideas in terms of
    production processes and is keen to learn more from the supply market, before running a formal competition.
    Which of the following should HTPI conduct as a priority?

    a. Competitive negotiation
    3
    L4M4 Exam Exemplar Questions Dec 2018
    b. Invitation to tender

    c. Request for information

    d. Supplier appraisal

    LO: 2

    AC: 2.2

    Q7. Which of the following items found in a supplier's financial statements are relevant to gearing?

    1. Long-term debt

    2. Opening inventory

    3. Short-term investments

    4. Shareholder's equity

    a. 1 and 3 only

    b. 2 and 4 only

    c. 2 and 3 only

    d. 1 and 4 only

    LO: 2

    AC: 2.3

    Q8. Credit rating is a relevant selection criterion when running a competitive tender. Is this statement true?

    a. Yes, because credit rating will impact on the brand

    b. Yes, because the credit rating will impact the profitability for the supplier

    c. No, because credit ratings are unreliable

    d. No, because credit ratings should be undertaken after selection

    4
    L4M4 Exam Exemplar Questions Dec 2018
    LO: 1

    AC: 1.3

    Q9. Which of the following are examples of secondary data that might be useful to understand the market when
    sourcing? Select the TWO that apply.

    a. Government reports

    b. Supplier websites

    c. Focus groups

    d. Online surveys

    e. Customer questionnaires

    LO: 2

    AC: 2.1

    Q10. Which of the following should be considered when calculating ratios relating to a supplier's liquidity? Select
    TWO that apply.

    a. Receivables

    b. Equity

    c. Reserves

    d. Payables

    e. Inventories

    LO: 2

    AC: 2.3

    5
    L4M4 Exam Exemplar Questions Dec 2018

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