Test Online Free CIPS L4M8 Exam Questions and Answers
The questions for L4M8 were last updated On Oct.05 2022 Get L4M8 Full AccessQuestion No : 1
CORRECT TEXT
What is needed for a contract to be binding?
Answer:A contract is written or verbal agreement, made between two or more parties that is legally enforceable. For a contract to be legally binding it must include intention of parties entering into the contracts. All parties must have the capacity to contract or be contracted. They must be of a sound mind, there should be a promise (offer) for performance from the other party and an exchange (consideration) of one thing for another within an agreement for contract to be binding, and there must be an acceptance of the offeror’s offer by the offeree.
Question No : 2
Which Incoterm applies here?
The supplier is responsible for delivering the goods directly onto the vessel that will transport them to their named destination and must also cover the cost of this. The supplier bears all risks until the goods are delivered to the buyer at their named place.
Answer:
Question No : 3
CORRECT TEXT
Write all of factors that contribute towards value for a product that you regularly purchase.
Answer:Factors that contribute towards value for clothe gum in a fashion firm;
1) How much money does the gum cost?
2) How much is the benefits of using the clothe gum?
3) Does customers prefer clothe gum at the bottom of their garment?
4) Is the clothe gum difficult to use?
5) Does the clothe gum beautifies the fabric when placed properly?
6) Does it give a better finishing?
7) Is it ethical to use?
8) Is it from a sustainable source?
9) is it environmental friendly?
10) Does using clothe gum suggest innovation in fashion?
Refer to the question column for response
Question No : 4
CORRECT TEXT
Describe three ways that hidden cost could present themselves within the logistics operation
Answer:Hidden costs are costs that do not always present themselves at the onset of the project. Logistics can provide a hidden cost within global sourcing. The movement of goods can generate risk within a localized supply chain, but the risk is greater within global sourcing. Within global sourcing there are usually many more aspects to the logistics operation, hidden cost associated with the logistics process includes,;1) delays that can be experienced after placing orders, 2) unclear and poor/incorrect communication that might affect the successes of the transaction, also 3) goods could be confiscated by customs for unseen reasons.
Question No : 5
CORRECT TEXT
Describe a situation where amendment or an addendum would need to be created
Answer:After all the due diligence is carried out, before awarding contract to the best supplier, sometimes procurement professionals find themselves in some problem solving situation; this might have been emanated from supplier facing a financial challenge or problems from external environment. Responding to this might require an amendment or an addendum, depending on the case in hand.
An amendment is for a physical change in the existing contract for example; if a contract contains a negotiated and agreed fixed price for the period of the contract but unexpected market forces such as an economic down turn or force majeure occur, the supplier may have to request an amendment order to continue to make a profit.
An addendum is when an additional document is added to the existing contract for example, If a contract have a schedule of rates and the market forces prices up, an addendum can be added to an existing contract with a revised schedule. Once accepted, the addendum becomes part of the con-tract. Addendum are physically used when the forecasted cost of a project rises and approval is needed to increase the contract spend.
Refer to the question column for response
Question No : 6
CORRECT TEXT
Explain with examples three differences between offers and invitation to treat.
Answer:An offer is created when one party communicates to another or to multiple parties that they wish to enter into a legal binding agreement in accordance with the terms stated, for example; a company in promotion advertising for buyers to buy one and get one free, an offer is a buying organization communicating to a supplier to supply X number of goods and be paid x amount upon delivery at company premises, an offer is when a football club proposes to pay X amount to a player if agrees to play for them for a month. An offer can be legally banded if accepted, whereas invitation to treat does not. An invitation to treat is just an invitation from one party to another to begin negotiations with the intention of creating an offer. If an offer is made without stating terms, this becomes an invitation to treat, for example, an invitation to treat is when a pharmacy displays a drug in its shelf. An invitation to treat can be linked to a request a buyer send to suppliers asking them for specific information.
Refer to the question column for response
Question No : 7
What Incoterm applies here?
The goods are considered ‘delivered’ at the point of release from the supplier’s premises or another name place. The supplier is not responsible for loading or transporting the goods and does not have to arrange export clearance C this must be arranged by the buyer. The risk is on the buyer from this point.
a) EXW C Ex Works
b) FCA C Free Career
c) CPT C Carriage Paid To
d) CIP C Carriage and Insurance Paid to
Answer:
Question No : 8
CORRECT TEXT
Describe four factors that could damage reputation within the supply chair
Answer:The reputation of all the organizations within a supply chain is linked. A Company’s reputation is an intangible asset that can contribute to the failure of an organization if damaged. Factors that could damage organizational reputation within the supply chain are;
Question No : 9
CORRECT TEXT
Explain why risk should be evaluated prior to the disposal of any assets.
Answer:Disposal of an asset is the final stage in the decommissioning process of a fixed asset. When a fixed asset reaches the end of its useful or cost effective life time within an organization, the decision is made as to whether it should be removed from the premises or disposed off.
The process of disposing an asset cannot be without its risk, for example there could be pollution in the community, waste or hazardous materials that could affect the underground water or humans around.
These risks should be identified, evaluated to come up with a response strategy on how to avoid or mitigate them causing damage to human, property, business and the environment.
Refer to the question column for response
Question No : 10
CORRECT TEXT
What does the acronym SMART stand for?
Answer:When the procurement professional is setting key performance indicator (KPI) where which the supplier performance will be monitored and managed. The KPI is expected to be SMART. SMART is an acronym that is used to set KPI and specification.
S - specific,
M - measurable,
A - achievable,
R - relevant, and
T - timebound.
- TOP 50 Exam Questions
-
Exam
All copyrights reserved 2024 PassQuestion NETWORK CO.,LIMITED. All Rights Reserved.
Passquestion doesn't offer Real Microsoft, Amazon, Cisco Exam Questions. All Passquestion content is sourced from the Internet.