100% Pass Your L4M4 Exam Dumps at First Attempt with TestKingFree [Q24-Q47]

NO.24 Which of the incoterms listed are suitable for transporting goods via train?

FAS

FOB

CRF

EXW

NO.25 A Request for Quotation asks a supplier to submit a price only, with no other details provided. Is this TRUE?

Yes- price is the only factor considered

Yes- this ensures the cheapest supplier is appointed

No – specifications, technical details and quantities can also be provided

No – quotations provide samples too

NO.26 Which of the following types of data do credit rating agencies include in their assessment of organisations?
(Select TWO)

Value for money

Value chains

Financial obligations

Ecosystems

Payment history

NO.27 A “carnet” provides evidence of the origin of goods shipped in international trade. Is this correct?

Yes, only used when exporting goods from Europe

Yes, a widely used import document confirming origin

No, it allows temporary free movement of goods

No, it is a type of insurance cover

NO.28 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.

Do nothing, after all, this is a known supplier incapable of serious breaches

Inform the supplier of any non-conformances and improvement opportunities

Report non-compliance to police and have the supplier arrested for lapses

Prepare an audit report that may be shared with the supplier in advance

Call for a meeting with colleagues and share confidential details of the audit

NO.29 Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender. What is the benefit of incorporating standards in a specification?

Standards provide clear guidelines and remove ambiguity

Standards will mirror the buyer’s requirements entirely

Standards will ensure low pricing in tender responses

Standards will ensure suppliers meet all buyer’s requirements

NO.30 Liquidity is a solvency measure which determines whether an organisation is able to pay its debt. Which of the following would you use to assess a supplier’s liquidity? Select TWO.

current assets

current liabilities

long-term debt

shareholder’s equity

NO.31 An organisation wants to measure its Triple Bottom Line. Which of the following should be considered to help achieve this goal?

Quality and lead time and performance

Innovation and creativity performance

Financial and environmental performance

Procedure and process performance

NO.32 A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

Yes- a low gearing ratio means the company’s finances are made up of equity rather than debt

Yes- a low gearing ratio shows that the business is solvent and can deal with supply chain disruptions easily

No- a low gearing suggests that the company is financed by long-term debt rather than equity

No- a low gearing shows you that a company isn’t likely to be profitable

NO.33 Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

No. ESG is not within the scope of a contractual document and should always be treated informally

No. Suppliers cannot be legally responsible for ESG compliance; this should be the buying organisation

Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously

Yes. This helps to demonstrate the importance of compliance with ESG

NO.34 Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?

capacity, capability and pricing structure

pricing structure, ethics and financial stability

financial stability, capacity and capability

capability, culture and pricing schedules

NO.35 Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down his supplier base and purchase from one supplier.
Which type of sourcing arrangement has Ramesh began?

dual

multiple

single

sole

NO.36 A buyer is considering trading with a new supplier who is based in a country they have not traded with before.
The buyer needs to understand the anti-bribery risks in the country. Which of the following sources of information would be useful in this regard? Select TWO that apply.

United Nations Sustainable Development Goals (UNSDGs)

International Court of Arbitration (ICC)

Transparency International (TI)

Local Anti-Corruption Legislation

International Standards Organisation (ISO)

NO.37 Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?

No, because this timeframe will cause delays that are unacceptable to stakeholders

Yes, because it helps suppliers to plan and prioritise their work

No, because the complexity of the tender should inform the response timescale

Yes, because that timeframe is internationally recognised as being appropriate

NO.38 Jack Green is using an open tender to source a new component for a product. What must be considered if using an open tender?

There must be an adequate number of suppliers in the market

The tender will only be advertised in marketing journals

Bidders must be pre-qualified prior to invitation

Price will be the only selection criterion

NO.39 Amnesty International, Oxfam and CIPS are examples of what type of organisation?

partnerships

limited liability

not-for-profit

public limited companies

NO.40 Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

phishing

verbal contracts

golden handshake

facilitation payment

NO.41 Why do tenders often have longer timescales in the public sector when compared with those of the private sector?

There is a more detailed debrief requirement in the public sector

There is wider stakeholder involvement in the public sector

All public sector purchases are mandated to use a tendering procedure

Regulation of the public sector usually dictates minimum timescales

NO.42 What would an EBITDA ratio show you?

how profitable a business is

how solvent a business is

how much of a business’s funding is made up of long term debt

how effectively a business uses its assets to generate sales

NO.43 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?

Earnings per share

Profitability ratio

Dividend per share

Liquidity ratio

NO.44 The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?

it allows transparency

it is time-consuming to create

it is easy to manipulate

it is hard to be objective

NO.45 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?

Direct negotiations occur prior to suppliers submitting their offer

The contract will be awarded strictly on pricing criteria

Suppliers responding to the tender are pre-qualified

It is only relevant when there are few suppliers in the market

NO.46 Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

location

distribution

reputation

quality

price

NO.47 Chantelle is a procurement apprentice working in the public sector for an education organisation. As a result of studying towards the CIPS qualification, Chantelle has become aware of the importance of incorporating sustainability and environmental award criteria into tender exercises and has informed her manager of this.
For the purchase of IT supplies, which requirement could be evaluated within the sustainability and environmental award criterion?

After-sales support

Competitive pricing

Delivery lead time

Consolidated delivery