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CIPS L4M4 Exam Syllabus Topics:
Topic
Details
Topic 1
Topic 2
Topic 3
Topic 4
CIPS Ethical and Responsible Sourcing Sample Questions (Q79-Q84):
NEW QUESTION # 79
If a company is described as 'liquid' what does this mean?
Answer: B
Explanation:
liquid = the ability to pay short and medium term debts. In simple terms do you have more in stuff (money, assets) than you owe in debt?
Understanding Liquidity and How to Measure It (investopedia.com)
This is a hot topic for the exam. Learn everything in this section.
NEW QUESTION # 80
The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?
Answer: D
Explanation:
The current ratio is calculated by dividing total current assets by total current liabilities. Here, dividing $300 by $150 gives a current ratio of 2.0, indicating that the supplier has adequate current assets to cover its short- term obligations, an important factor in supplier evaluation.
NEW QUESTION # 81
Which of the following are examples of secondary data? Select TWO
Answer: A,B
Explanation:
economic indices and comparison websites are secondary sources of data. The other three are examples of primary sources of data.
Primary= you get the data yourself
Secondary = you find the data from somewhere else
NEW QUESTION # 82
How can a buyer monitor a supplier's ethical workforce standards throughout a long-term contract?
Answer: D
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 # 83
Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?
Answer: B
Explanation:
This is tariffs. Be careful not to confuse tariffs and duties;
tariffs = rules and duties = payments.
NEW QUESTION # 84
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