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IT-Tests L4M4 Test Study Guide, Answer CIPS L4M4 Practice Exam Questions

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CIPS Ethical and Responsible Sourcing Sample Questions (Q20-Q25):

NEW QUESTION # 20
Which of the following is not a indices that measures economic data?

A. CPI
B. PPI
C. ISO
D. GDP

Answer: C

Explanation:
ISO isn't an indices- it stands for 'International Labour Association'.
The others are all indices that measure economic data; consumer price index, producer price index and gross domestic product.

NEW QUESTION # 21
Khalid is a procurement manager in the UK who is looking to source exotic fruit for a retailer. As this type of fruit doesn't grow naturally in the UK Khalid is looking at international suppliers, but is worried about variations in exchange rates. He is considering asking the suppliers to provide quotes in their local currencies.
Will this reduce the risk posed to Khalid?

A. yes- when suppliers quote in local currencies you are more likely to get better prices
B. no- quoting the prices in GBP / £ will provide Khalid with better security against cur-rency fluctuations
C. yes- suppliers should quote in their own currencies so there is no risk to the importing company
D. no- prices should be quoted in GBP / £ as this will reduce the cost of imports

Answer: B

Explanation:
So you can immediately discount the options starting with yes.
Quoting in GBP / £ rather than the supplier's currency reduces the risk to the buyer. It will not re-duce the cost of the import, and will probably increase it as the supplier is then taking on the risk of currency fluctuations.

NEW QUESTION # 22
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.

A. It provides evidence guaranteeing the use of Incoterms on the goods
B. It provides evidence of the contract of carriage for the goods
C. It provides evidence that the goods are fully insured in transit
D. It provides evidence of the title of ownership of the goods
E. It provides evidence of the country of origin of the goods

Answer: B,D

Explanation:
The bill of lading serves as both a receipt of goods and a document of title, which means it confirms the contract of carriage and can transfer ownership. Responsible sourcing in international trade requires precise documentation, which is why the bill of lading is critical in verifying both carriage and title.

NEW QUESTION # 23
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

A. location
B. price
C. quality
D. reputation
E. distribution

Answer: B,C

Explanation:
Price and Quality are the two considerations when marking a competitive tender.
Location, distribution and reputation may be considered for SOME tenders, but these would be sub-categories that fall under 'quality questions.

NEW QUESTION # 24
Which of the following is a UK legislation concerning product safety?

A. Competition Act 1998
B. Consumer Rights Act 2015
C. GDPR 2018
D. Enterprise Act 2002

Answer: B

Explanation:
The Consumer Rights Act 2015 is about product safety and making sure products sold on the market are fit for purpose. It gives buyers rights and protections. The Consumer Rights Act 2015 - Citizens Advice There's a long list of legislation on p.105. I wouldn't worry about memorizing them all but just have an idea of what legislation relates to what area. E.g. GDPR is about Data Protection and the Com-petitions Act is about Marketplace competition. Most of them are quite obvious from the name.

NEW QUESTION # 25
......

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