100% Pass 2026 CIPS L4M4: Ethical and Responsible Sourcing Fantastic New Exam Materials

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CIPS Ethical and Responsible Sourcing Sample Questions (Q21-Q26):

NEW QUESTION # 21
Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities

Answer: A,D

Explanation:
Gearing measures how much of an organisation's long-term funding is made up of long term debt and loans.
Therefore the correct answers are 'shareholder equity' and 'long term debt'.
There are many question about financial ratios that can come up on the exam. If you're unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I'm not associated with the makers of this video but think they're really good at explaining things to beginners) Gearing Ratio explained (youtube.com)


NEW QUESTION # 22
Placing varied importance on different sections of a tender submission is known as what?

Answer: D

Explanation:
Weightingis the process of assigning different levels of importance to evaluation criteria within a tender assessment, such as price, quality, sustainability, and delivery. This ensures that the final decision reflects organisational priorities and achieves best value rather than focusing on a single factor. Bias refers to unfair preference, compliance relates to meeting mandatory requirements, and scaling refers to scoring ranges rather than importance. Ethical and responsible sourcing promotes weighting as it supports transparent, objective, and defensible evaluation decisions aligned with value-for-money and sustainability objectives.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - evaluation methods; weighted scoring models.


NEW QUESTION # 23
AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.
How can this information help the consultant decide on the procurement strategy?

Answer: B

Explanation:
Strategic, high-value categories requiregreater management attention, as they have a significant impact on organisational performance, brand image, and risk exposure. A collaborative relationship allows for innovation, quality improvement, continuity of supply, and alignment with ethical and sustainability objectives. Low-value or non-critical categories are more suited to transactional or arm's length relationships.
Ethical and responsible sourcing requires procurement resources to be prioritised according tovalue and strategic importance, ensuring high-risk categories receive appropriate governance and supplier engagement.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - category management; strategic vs non-critical spend.


NEW QUESTION # 24
In which instance would multiple sourcing be the most applicable approach?

Answer: D

Explanation:
Multiple sourcing reduces dependency risks and provides flexibility in urgent supply situations. For components needed at short notice, having multiple suppliers ensures continuity and responsiveness.
Strategic, high-value, or unique components (B, C) often require single or closer sourcing to ensure collaboration and expertise. Service provision (A) typically benefits from relationship-based sourcing rather than multiple arrangements. Responsible sourcing stresses that multiple sourcing is a risk management tool, best applied where speed, availability, and resilience are essential.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing strategies (single vs multiple sourcing).


NEW QUESTION # 25
You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?

Answer: D

Explanation:
For low-value, routine purchases where price is the primary consideration, employing a weighted points system may not be necessary. Such systems are more suitable for complex procurements where multiple factors, such as quality, delivery, and sustainability, need to be evaluated alongside price. In the case of purchasing standard items like pens, a straightforward price comparison is typically sufficient.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3.2: The use of weighted points systems for assessment


NEW QUESTION # 26
......

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