CIPS L4M4 practice materials Questions Answers

Exam Code:
L4M4
Exam Name:
Ethical and Responsible Sourcing Exam
Last Update:
Jun 01,2026

282 Questions Answers Verified by Experts!


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CIPS L4M4 Questions for Level 4 Diploma in Procurement and Supply Certification Exam 2026

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Page: 1 / 24
Total Questions: 120

Questions & Answers PDF

• Question 1

  

  Which of the following is a regulatory body which protects the rights of workers?

  • ISO
  • ILO
  • FairTrade
  • WWF

  Reveal Answer Answer: B Next Question

• Question 2

  

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

  • net profit
  • shareholder equity
  • long term debt
  • gross sales

  Reveal Answer Answer: A, ,C Next Question

• Question 3

  

  Which of the following is an advantage to the TUPE regulations?

  • Continuity of supply for the buying organisation
  • Value for money for the buying organisation
  • Reduced overheads for the buying organisation
  • Increase in buyer power

  Reveal Answer Answer: A Next Question

• Question 4

  

  In which type of market would you be most likely to find a 'perfect competition'?

  • monopoly
  • oligopoly
  • commodity
  • monopolistic competition

  Reveal Answer Answer: B Next Question

• Question 5

  

  Yolo Inc. have recently run a tender opportunity to find a suitable supplier of yoyos and they have received a number of bids. The supplier will become a strategic partner to the business as yoyos are vital to the success to Yolo Inc. The tender asked for both price submissions and had a number of quality questions. Eamon is the Procurement Manager of Yolo Inc and is responsible for selecting the most appropriate supplier. How should Eamon appraise the bids?

  • evaluate the bids himself as this is a complex requirement
  • evaluate the bids himself as this is a strategic purchase
  • organise a cross-functional team to assess the bids as people from other departments may have important information and experience of yoyos
  • organise a cross-functional team of procurement personnel as they will have experience in assessing price and quality of bids

  Reveal Answer Answer: C Next Question

• Question 6

  

  When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit. Which of the following could these be? Select TWO

  • The organisation is new
  • The organisation has no loans or credit cards
  • The organisation has lots of fixed assets
  • The organisation does not employ many people

  Reveal Answer Answer: B, ,C Next Question

• Question 7

  

  Ji Yuan is a procurement manager who is looking for a new supplier to complete reactive maintenance activities throughout his property portfolio. The reactive maintenance will include an array of plumbing tasks as well as fixing electrical items. Suppliers therefore need to be extremely skilled and knowledgeable about a variety of tasks. Ji Yuan has done some initial research and doesn't believe that there are many suppliers who can complete this type of contract. What type of tender should he use?

  • negotiated
  • restricted
  • open
  • competitive dialogue

  Reveal Answer Answer: C Next Question

• Question 8

  

  Phishing is a type of fraud that is commonly associated with which industry?

  • Agriculture
  • Mining
  • IT
  • Construction

  Reveal Answer Answer: C Next Question

• Question 9

  

  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?

  • develop strategy
  • supplier selection
  • contract award
  • asset management

  Reveal Answer Answer: B Next Question

• Question 10

  

  Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio. What would this suggest?

  • the supplier is extremely profitable
  • the supplier has a lot of long-term debt
  • the supplier has a high cost of sales
  • the supplier has a strong return on investment

  Reveal Answer Answer: B Next Question

Page: 1 / 24
Total Questions: 120

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