Valid L4M4 Test Syllabus, Customized L4M4 Lab Simulation
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CIPS L4M4 Exam Syllabus Topics:
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>> Valid L4M4 Test Syllabus <<
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CIPS Ethical and Responsible Sourcing Sample Questions (Q62-Q67):
NEW QUESTION # 62
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. 3 and 4 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 1 and 4 only
Answer: D
Explanation:
Outsourcing can create risks such as loss of control over a project (1) since operations are managed externally, and loss of private information (4) if data security and confidentiality are not managed effectively. Loss of assets (2) typically refers to internal asset disposal, not outsourcing. Loss of future business opportunities (3) is more linked to strategic misalignment, not a core outsourcing risk. Responsible sourcing emphasises that outsourcing should include robust governance, contractual protections, and supplier monitoring to manage risks of data leakage, reduced oversight, and potential ethical breaches.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implications" - outsourcing risks and ethical considerations.
NEW QUESTION # 63
Sourcing is part of the procurement cycle and is likely to be used in conjunction with which activities? (Select TWO)
- A. Raising purchase requisitions
- B. Requesting quotations
- C. Uploading goods received notes
- D. Identifying potential suppliers
- E. Creating call-off orders
Answer: B,D
Explanation:
Sourcing relates to identifying suppliers (E) and requesting quotations (D) as part of the market engagement stage of the procurement cycle. By contrast, creating call-off orders, raising requisitions, and goods receipting are post-contract operational activities. Responsible sourcing highlights that supplier identification and quotations are key to ensuring ethical, competitive, and compliant supply chains. These activities help ensure alignment with organisational goals, supplier diversity, and sustainability objectives.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing activities within the procurement cycle.
NEW QUESTION # 64
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?
- A. Allow the supplier to complete current orders placed, while pursuing an alternative source to change to as soon as approved
- B. Remove all business and inform press organisations, who will in turn bring the issue to the attention of formal governmental organisations who can take action
- C. Immediately raise the issue with the supplier and jointly develop a timely action plan to be implemented before a repeat audit
- D. Immediately halt all orders with the supplier, make a record of the violation in the supplier database, and switch to an alternative source of supply
Answer: C
Explanation:
Addressing human rights issues collaboratively by developing an action plan allows for improvement and correction. This approach is consistent with ethical sourcing principles, which encourage responsible intervention to correct and improve supply chain practices rather than punitive measures that may not lead to long-term change.
NEW QUESTION # 65
'Phishing' is an activity that can occur when an employee within an organisation receives an email that appears to be from a genuine supplier but is false. These types of emails expose the organisation to the activities of expert cyber criminals. Which type of crime category does this activity fall within?
- A. Corruption
- B. Fraud
- C. Bribery
- D. Human rights
Answer: B
Explanation:
Phishing is categorized as fraud because it involves deceptive practices to gain sensitive information or financial benefits. Responsible sourcing includes ensuring that cybersecurity measures are in place to prevent fraud and protect sensitive information within supply chains.
NEW QUESTION # 66
Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?
- A. ethical practice
- B. product safety standards
- C. marketplace competition
- D. data protection
Answer: B
Explanation:
the correct answer is 'marketplace competition'.
Ethical practice is about prohibiting corrupt and unfair practice, rather than issues of supply and demand.
Although being in a cartel is 'unethical behavior' this option doesn't fully answer the question which talks about limiting supply- this is related to marketplace competition.
NEW QUESTION # 67
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