CIPS L4M4 Reliable Exam Simulator - Latest L4M4 Learning Materials
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CIPS Ethical and Responsible Sourcing Sample Questions (Q113-Q118):
NEW QUESTION # 113
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'. What implications would this mean for Henry?
- A. the goods are subject to tariff quotas
- B. there are no duty charges or limitations
- C. he will require insurance
- D. the goods are banned in the UK
Answer: A
Explanation:
Items of 'Non-Preferential Origin' are subject to tariff quotas and other customs commercial regulations.
'Preferential Origin' goods have no duties or tariffs.
The good news is CIPS have significantly simplified section 3.2 of the syllabus. The new study-guide is much lighter on names of documents and protocols for importing and quotas etc. The focus of this Learning Outcome has shifted more to Inco Terms so I would focus on that for revision, but do make sure you have a basic understanding of documents, law and jurisdiction.
NEW QUESTION # 114
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will be used across multiple doctors'practices and community health centres. Ramesh has reviewed the different tender approaches and has concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?
- A. Suppliers responding to the tender are pre-qualified
- B. Direct negotiations occur prior to suppliers submitting their offer
- C. The contract will be awarded strictly on pricing criteria
- D. It is only relevant when there are few suppliers in the market
Answer: A
Explanation:
In a restricted tender process, suppliers are pre-qualified through a selection process before being invited to submit tenders. This approach is suitable when there is a need to ensure that only capable suppliers are considered, often due to the complexity or high value of the procurement. It is not limited to situations with few suppliers, and direct negotiations typically occur after tender submissions, not before. Contracts are awarded based on multiple criteria, not solely on price.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.2: Tendering Procedures
NEW QUESTION # 115
A 'carnet' provides evidence of the origin of goods shipped in an international trade transaction. Is this statement correct?
- A. It is only used when exporting goods from Europe and confirms the country of origin
- B. It is a type of insurance cover to protect against loss of goods in transit
- C. It is a widely used import document that confirms the origin of goods
- D. It is a document that allows the temporary free movement of goods
Answer: D
Explanation:
A carnet (ATA Carnet) is an international customs document that allows for the temporary, duty-free and tax- free movement of goods across borders, usually for exhibitions, trade fairs, or professional equipment. It is not proof of origin (which is confirmed by a certificate of origin), nor is it an insurance document. It is also not restricted to European exports. By reducing customs paperwork and costs for temporary movements, carnets support trade efficiency but do not replace origin or insurance documents. Responsible sourcing requires procurement professionals to know which trade documents are appropriate for compliance and risk management.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - international trade documentation.
NEW QUESTION # 116
A buyer of bakery and cereal products is tracking wheat prices. Severe weather causes crop failure in a major wheat-producing country, creating global shortage while demand remains high. How can this research help the buyer?
- A. Bakery produce is likely to be at a lower price as there is less availability of wheat flour in the market
- B. The price for wheat-based produce will not be affected by the global shortages as demand is still high
- C. The buyer will be in a strong bargaining position to reduce the price of wheat-based food items
- D. The buyer will find it difficult to negotiate a lower price for products containing wheat-based ingredients
Answer: D
Explanation:
In situations of global commodity shortages, basic supply-and-demand principles mean that prices increase when demand remains constant or high. This reduces the buyer's bargaining power, making it difficult to negotiate lower prices (C). Instead, suppliers are likely to increase costs due to scarcity. Options A and D are incorrect because reduced availability drives prices up, not down. Option B is misleading - prices are affected by shortages. Responsible sourcing requires procurement professionals to anticipate such volatility through market intelligence, consider alternative supply sources, or explore hedging/forward contracts to mitigate risks.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implications" - commodity markets, supply/demand dynamics, negotiation power.
NEW QUESTION # 117
Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?
- A. data protection
- B. marketplace competition
- C. product safety standards
- D. ethical practice
Answer: C
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 # 118
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