Get 2026 Free CIPS L4M4 Exam Practice Materials Collection
Get Latest and 100% Accurate L4M4 Exam Questions
CIPS L4M4 Exam Syllabus Topics:
| Topic | Details |
|---|---|
| Topic 1 |
|
| Topic 2 |
|
| Topic 3 |
|
| Topic 4 |
|
NEW QUESTION # 135
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?
- A. No, it is not necessary as in this case, you are mainly concerned with price
- B. Yes, you should follow the same procurement process irrespective of the circumstances
- C. Yes, a weighted points system is always the best way to evaluate bids
- D. No, you should only use a weighted points system for high-spend procurement
Answer: A
Explanation:
Weighted points systems are appropriate for complex or high-value purchases where multiple factors (e.g., quality, sustainability, delivery) must be balanced. For simple, low-value purchases like pens, price is typically the only differentiating factor. Using a weighted points system would overcomplicate the process, wasting resources. Responsible sourcing requires proportionality - applying robust evaluation methods where justified, while keeping processes simple and efficient for routine purchases. This ensures efficiency without compromising governance, freeing procurement resources for strategic projects.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - proportionality in procurement methods.
NEW QUESTION # 136
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?
- A. Immediately halt all orders and switch to an alternative source of supply
- B. Immediately raise the issue with the supplier and jointly develop a timely action plan before a repeat audit
- C. Remove all business and inform press organisations to escalate to government authorities
- D. Allow the supplier to complete current orders while pursuing alternatives
Answer: B
Explanation:
CIPS promotes a constructive and corrective approach when suppliers fall short of ethical standards, especially on critical issues like human rights. Immediately cutting ties can harm workers further and disrupt supply without addressing root causes. A responsible sourcing approach requires buyers to engage suppliers, escalate the concern, and establish a corrective action plan with monitoring to ensure compliance. Only if the supplier refuses to act or breaches persist should termination occur. This supports continuous improvement, supplier development, and ethical due diligence, reflecting global standards such as the UN Guiding Principles on Business and Human Rights.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - audits, corrective action plans, ethical risk management.
NEW QUESTION # 137
Which of the following are examples of secondary data? Select TWO
- A. economic indices
- B. comparison websites
- C. networking
- D. commissioned market research
- E. trade fairs and exhibitions
Answer: A,B
Explanation:
economic indices and comparison websites are secondary sources of data. The other three are examples of primary sources of data.
Primary= you get the data yourself
Secondary = you find the data from somewhere else
NEW QUESTION # 138
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?
- A. multiple sourced
- B. dual sourced
- C. sole sourced
- D. single sourced
Answer: C
NEW QUESTION # 139
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?
- A. interest in the tender opportunity is likely to be low
- B. the requirement is complex
- C. interest in the tender opportunity is likely to be high
- D. the suppliers are likely to be unqualified
Answer: C
Explanation:
you would use a restricted approach when interest is likely to be high. The buyer needs a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations.
For complex requirements you could use both an open or restrictive tender- the difference between the approaches is about how many bids you're likely to get rather than the complexity of it.
NEW QUESTION # 140
Which of the following characteristics are likely to be required within sourcing processes undertaken in the public sector?
* An emphasis on long-term supplier relationships where possible
* Maintaining service levels within value and cost parameters
* All dealings between buyers and suppliers are kept confidential
* A competitive tendering process is usually encouraged
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 2 and 4 only
Answer: D
Explanation:
In public sector procurement, maintaining service levels within value and cost parameters is essential to ensure efficient use of public funds. Additionally, a competitive tendering process is encouraged to promote transparency, fairness, and value for money. While long-term supplier relationships can be beneficial, they are not always feasible or emphasized in the public sector due to regulations requiring periodic re-tendering.
Confidentiality is important, but public sector procurement often requires a degree of transparency that precludes complete confidentiality in dealings.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.4: Public Sector Procurement Characteristics
NEW QUESTION # 141
A buyer is considering trading with a new overseas supplier and wants to assess anti-bribery risks in that country. Which information sources would be useful? (Select TWO)
- A. International Court of Arbitration (ICC)
- B. Local Anti-Corruption Legislation
- C. Transparency International (TI)
- D. International Standards Organisation (ISO)
- E. United Nations Sustainable Development Goals (UNSDGs)
Answer: B,C
Explanation:
Local anti-corruption laws (A) provide insight into the legal framework and enforcement environment, while Transparency International (B) publishes the Corruption Perceptions Index and reports on bribery risks worldwide. These are reliable sources for assessing corruption levels and associated risks. UNSDGs set broad sustainability goals but not country-specific corruption risks. The ICC deals with arbitration, not anti-bribery.
ISO standards provide frameworks for compliance but do not analyse country risk. Responsible sourcing requires due diligence on governance environments to mitigate bribery risks and comply with anti-corruption legislation such as the UK Bribery Act.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethical risk, corruption, and international frameworks.
NEW QUESTION # 142
Incoterms are divided into four main groups to follow the movement of goods covering the exporter's premises, export and import points, and cost and risk. Which letters represent the four groups of Incoterms?
- A. E, F, B, and C
- B. B, C, F, and G
- C. A, B, C, and D
- D. E, F, C, and D
Answer: D
Explanation:
Incoterms are grouped as E (Ex Works), F (Free Carrier), C (Carriage Paid To), and D (Delivered Duty Paid), reflecting various stages of responsibility transfer between buyer and seller. Understanding Incoterms is critical for responsible sourcing, as it clarifies logistics and cost responsibilities.
NEW QUESTION # 143
A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'. What should be the procurement manager's course of action?
- A. award the contract to the low bid as this represents better value for money
- B. automatically dismiss the low bid
- C. award the bid a 0 for price
- D. investigate the low bid
Answer: D
Explanation:
You should investigate automatically low tenders by clarifying the bid with the supplier. It could be they have misunderstood the requirement. Or the bid could be genuine and they can really provide best value for money.
But without enquiring, you just don't know.
NEW QUESTION # 144
Which instance would multiple sourcing be the most applicable approach?
- A. Sourcing for components required at short notice
- B. Sourcing for high-cost, strategically important components
- C. Sourcing for the provision of a service, where close relationship management is required
- D. Sourcing a specialised, unique component where the supplier's knowledge is key
Answer: A
Explanation:
Multiple sourcing is particularly beneficial when requirements are time-sensitive and availability is critical.
By engaging more than one supplier, the buyer ensures supply continuity, reduces dependency on a single provider, and improves responsiveness to urgent needs. While sole or single sourcing may suit high-cost strategic components or unique expertise, these arrangements increase dependency risks. For short-notice requirements such as consumables or basic components, multiple sourcing provides resilience and flexibility.
CIPS L4M4 stresses that sourcing strategy should reflect risk, demand variability, and supply criticality, and multiple sourcing directly addresses supply risk mitigation.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - sourcing strategies, single vs multiple sourcing.
NEW QUESTION # 145
Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?
- A. yes- 25 is the correct weighting for quality question
- B. no- the weighting should total 100
- C. no- the weighting should total 10
- D. yes- point systems can be weighted any way a buyer choses so long as this is explained in the ITT
Answer: B
Explanation:
weighted points systems for assessments should add up to 100. This is 100%.
An example is how this would work is
Price = 50%
Health and Safety questions= 30%
Qualifications = 20%
NEW QUESTION # 146
In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?
- A. When the requirement is needed urgently and price is not the most important factor
- B. When the suppliers have technical expertise, and the value of the procurement is relatively high
- C. When the value of the procurement is high and special tooling is a major factor
- D. When the specification is likely to be continuously reviewed as the contract progresses
Answer: B
Explanation:
Competitive tendering is ideal for high-value contracts where technical expertise is essential. This method supports responsible sourcing by ensuring quality and aligning the supplier's capabilities with the buyer's needs, as required in more complex procurement scenarios.
NEW QUESTION # 147
Why is it important to consider factors such as environmental, social, governance and ethics when analysing tender proposals from the market?
* To ensure adherence to sustainability initiatives
* To improve the process workflow
* To perform supplier spend and monitoring
* To identify potential risks within the supply chain
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 3 and 4 only
Answer: C
Explanation:
Incorporating Environmental, Social, and Governance (ESG) and ethical considerations into tender analysis is crucial for:
* Adherence to Sustainability Initiatives:Ensuring that suppliers align with the organisation's sustainability goals and legal obligations.
* Risk Identification:Assessing ESG factors helps in identifying potential risks in the supply chain, such as environmental violations or unethical labour practices, which can impact the organisation's reputation and operations.
Exact Extract from Study Guide:
"This unit focuses on responsible procurement practices, ensuring that sourcing decisions align with legal, environmental, and social governance (ESG) principles."
NEW QUESTION # 148
Which of the following items would you expect to find on a balance sheet? Select THREE
- A. current liabilities
- B. gross product sales
- C. current assets
- D. net product sales
- E. stockholders' equity
Answer: A,C,E
Explanation:
current assets, current liabilities and equity can be found on a balance sheet. Net and gross sales will be found on a profit and loss account.
NEW QUESTION # 149
A buyer has been tasked with placing an order for steel from another country and using Incoterms for delivery. The buyer's organisation has an in-house transportation and export clearance department. During negotiations, the buyer achieved a 25% cost reduction by accepting responsibility for loading, transportation, and export clearance. Which Incoterm has been agreed?
- A. FCA - Free Carrier
- B. FOB - Free on Board
- C. CIP - Carriage and Insurance Paid
- D. EXW - Ex Works
Answer: D
Explanation:
The EXW (Ex Works) term means the seller's responsibility ends once goods are made available at their premises. The buyer must take on costs and risks from that point, including loading, transport, and export clearance. Because the seller is not responsible for logistics, the quoted price is lower. In contrast, FCA includes delivery to a carrier, FOB covers loading onto a vessel, and CIP includes carriage and insurance arranged by the seller. By accepting these responsibilities, the buyer leveraged cost savings, demonstrating knowledge of Incoterms and alignment with efficient sourcing practices.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - Incoterms responsibilities and cost-sharing.
NEW QUESTION # 150
What is a major benefit to using Incoterms when sourcing goods internationally?
- A. it ensures ethical business practices
- B. it replaces the need for insurance
- C. it ensures value for money
- D. it replaces lengthy contractual clauses
Answer: D
Explanation:
Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it's completely random how many you'll get on this topic.
NEW QUESTION # 151
......
Maximum Grades By Making ready With L4M4 Dumps: https://www.itexamreview.com/L4M4-exam-dumps.html
Prepare L4M4 Exam Questions Recently Updated Questions: https://drive.google.com/open?id=134MW_I9PEoh0XF1keTTZWhUwnZQRn953
