Free L4M4 Exam Braindumps (page: 7)

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Which of the following is an example of intracompany trading? Select TWO

  1. a manufacturer in the UK buys raw copper from a supplier in Chile
  2. two companies owned by the same entity conduct business
  3. two companies join together to create a new product
  4. two departments within the same company collaborate on a project
  5. cleverness

Answer(s): B,D

Explanation:

Intracompany trading is when two departments in the same company do trading. AND when two companies owned by the same parent company do trading. INTRA means 'within' - so it's doing business with yourself.



During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?

  1. develop strategy
  2. supplier selection
  3. contract award
  4. asset management

Answer(s): B

Explanation:

At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk). At develop strategy stage you're not even looking at suppliers yet- you're just deciding what you need. At contract award and asset management it's too late. CIPS procurement cycle - Procurement Supply Cycle | CIPS



For complex and high value tenders, which document is the most appropriate to send to those suppliers who have already been appraised and deemed suitable?

  1. PQQ
  2. ITT
  3. RFQ
  4. RFT

Answer(s): B

Explanation:

The correct answer is Invitation to Tender. This is sent out to suitable suppliers inviting them to bid for the opportunity.
A PQQ - pre-qualification questions naire- is sent to suppliers to see if they are suitable. The QUESTION NO : states these suppliers have already been deemed suitable, so they've already passed PQQ
A RFQ - request for quotation- would be used when the only variable is price, so is not suitable for complex tenders.
RFT isn't a thing. I made the last one up.



Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment.
Which of the following should Robert look at?

  1. ESG Policy
  2. Anti-Slavery Policy
  3. ISO9001
  4. ISO27000

Answer(s): A

Explanation:

Robert should look at the supplier's ESG policy. This stands for Environmental Social Governance. So covers both his requirements for community (social) and environmental factors. ISO 9001 is about Quality Management and ISO27000 about Information Security so these are in- correct answers. An Anti-Slavery Policy would not discuss the environment.



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