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CIPS L4M4 Exam Syllabus Topics:

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CIPS Ethical and Responsible Sourcing Sample Questions (Q113-Q118):

NEW QUESTION # 113
Bribery is considered an unethical business practice. What constitutes a bribe?

• A. anything that can be traded illegally
• B. anything that is of value to the recipient
• C. something that has monetary value
• D. something of significant monetary value

Answer: B

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 # 114
Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?

• A. ESG Policy
• B. ISO27000
• C. ISO9001
• D. Anti-Slavery Policy

Answer: A

Explanation:
Robert should look at the supplier's ESG policy. This stands for Environmental Social Governance. So covers both his requirements for community (social) and environmental factors.
ISO 9001 is about Quality Management and ISO27000 about Information Security so these are in-correct answers. An Anti-Slavery Policy would not discuss the environment.

NEW QUESTION # 115
Which of the following factors are typically considered when assessing a supplier's financial capacity?

• A. The supplier's costing methods and markup percentage
• B. The price quoted in the request for quotation
• C. The supplier's compliance with regulations for minimum wages
• D. The supplier's profitability and asset levels

Answer: D

Explanation:
Profitability and asset levels indicate a supplier's financial stability and ability to meet contract demands.
Responsible sourcing practices include assessing financial capacity to reduce risk in the supply chain and ensure long-term supplier viability.

NEW QUESTION # 116
Which of the following payment mechanisms is most beneficial to the buyer?

• A. open/ credit account
• B. sight draft
• C. term / time draft
• D. cash in advance

Answer: A

Explanation:
Open account (aka credit account) is most beneficial to the buyer. The supplier delivers the goods then the buyer pays.
Cash in advance is most beneficial to the supplier. The buyer pays for the item before receiving it.
This is a known exam topic.

NEW QUESTION # 117
When would a procurement professional use the Pareto principle?

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

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 # 118
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