Updated L4M4 Dumps (V10.02) – Practice Authentic and Reliable L4M4 Exam Questions and Answers to Prepare for Your Ethical and Responsible Sourcing Exam

1. What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?

2. 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 spread across multiple doctors' practices and community health centres. Ramesh has reviewed different tender approaches and concluded that the use of a restricted tender is the most appropriate.

Which of the following statements is true for a restricted tender process?

3. Many organisations prefer a multi-sourcing approach because of the advantages it provides.

Which of the following might be an advantage of multi-sourcing?

4. What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

5. A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance.

Should the company go ahead with the recommendation?

6. A buyer might opt to do an 'Invitation to Tender' rather than a 'Request for Quotation' process because ...

7. A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility to arrange loading, transportation, and export clearance.

Which Incoterm has been agreed?

8. A competitive tendering process is usually encouraged

9. When assessing social responsibility elements of a supplier's proposal, what type of supporting evidence could a supplier provide?

10. In which instance would multiple sourcing be the most applicable approach?

11. What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

12. Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to.

Which of the following is a benefit of incorporating standards as a requirement within a specification?

13. An organisation wants to measure its Triple Bottom Line.

Which of the following should be considered to help achieve this goal?

14. Review the non-disclosure agreement for their contract

15. A procurement manager for a major retail group is using ratio analysis to assess the financial viability of suppliers who have tendered for a logistics services tender. The recommended supplier has a current ratio of 0.6.

What are the potential consequences of awarding the contract to this supplier, given their current ratio is below 1?

16. Incoterms are designed to be understood and interpreted on a worldwide basis.

What is the interpretation for FOB (Free on Board)?

17. Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?

18. Which award criteria can be applied when sourcing requirements from external suppliers?

19. When assessing the financial performance of a potential supplier, it is important to understand how much gross profit they are making. The gross profit margin ratio uses which of the following pieces of information from the profit and loss (statement of financial performance)? Select TWO that apply.

20. As a procurement officer for a large organisation, a supplier approaches you on social media offering to take you out for dinner to discuss a recent open opportunity and mentions a financial reward if you help them win the business. You accept the invite.

Was this the right thing to do?

21. Past performance

22. It is good practice for the procuring organisation's auditors to undertake the following upon completion of a supplier's audit. Select the TWO that apply.

23. A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements.

The buyer will make the contract award decision based on which of the following?

24. Tracey Collum is a procurement professional and married to Nick Collum. Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids. After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems. Nick has asked Tracey to award the contract to Supplier X.

What should Tracey do?

25. The procurement team received an urgent request from the business to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements.

Was this an appropriate approach to use in the circumstances?

26. A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market.

Which of the following is a benefit of using a full competitive tendering process for this new contract?

27. In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?

28. Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.

29. A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally.

Which of the following factors is likely to justify the decision to make the requirements internally?

30. 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?

31. Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

32. Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.

33. '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?

34. How can a buyer monitor a supplier's ethical workforce standards throughout a long-term contract?

35. Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.

36. Negotiation styles

37. bypass the need to comply with other voluntary or legal codes

38. Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.

39. Breach of confidentiality

40. Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

41. Commodity

42. The bill of lading is one of the main documents associated with sea freight within international sourcing.

Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

43. A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market.

Is it good practice for the procurement buyer to make sourcing recommendations?

44. A buyer for a large manufacturing organisation is assessing a sole supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price.

Are there any added values that the procurement manager can use to leverage the sole supplier proposal?

45. Does your company have an anti-bribery policy?

46. The sourcing process is considered to include the initial stages of the generic procurement cycle, up to the stage where the contract is awarded to the successful bidder. The stages in the sourcing process may include ...

47. Azram is a facilities category buyer within the UK police force and is managing an overseas sourcing project for police uniform and personal protective equipment. Azram is of the opinion that international sourcing will help deliver much-needed financial savings, which can be utilized in other areas of the UK police force. Azram is aware that exchange rate fluctuations can create risk for his organisation.

How can Azram remove this risk?

48. Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector.

Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?

49. The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

50. What are some of the benefits of conducting unscheduled supplier audits? Select TWO that apply.

51. Which of the following factors are typically considered when assessing a supplier's financial capacity?

52. Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?

53. Loss of private information

54. What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?

55. Incoterms are divided into four main groups to follow the movement of goods covering the exporter’s premises, export and import points, and cost and risk.

Which letters represent the four groups of Incoterms?

56. Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.

57. A buyer is responsible for the procurement of metals within the raw materials department. The buyer is preparing for next year’s purchase orders and has been asked to confirm the month of order placement.

The buyer has found three trends:

In January and April, the supplier's local currency is stronger

November typically has the lowest demand

May typically has the highest demand

Which month should the buyer plan to place the purchase order?

58. What mechanism helps buying organisations achieve a best value outcome in a tender exercise?

59. Ishikawa Fishbone

60. A company has a requirement for an item that has been identified as strategic on the positioning

model. The company needs to invite competitive tenders and ensure the selected supplier of this item is in a good financial position.

What should the company ask the suppliers to send to show that their current assets cover their current liabilities?