Free CIPS L4M4 Exam Questions

Become CIPS Certified with updated L4M4 exam questions and correct answers

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Total 486 Questions | Updated On: May 17, 2025

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Question 1

Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.

A : The company's criteria for make or buy decisions

B : The financial stability of the company

C : Procedures on intra-company trading

D : The company’s employee working conditions

E : The company's code of ethics

F : The company's policy on carbon emissions

Answer: D,E,F

Question 2

For what type of purchase would you use a Futures Exchange?

A : Tail Spend

B : Capital Expenditure

C : Commodity

D : High value, high risk

Answer: C

Question 3

Which of the following Incoterms does not require the buyer to cover all costs and taxes of import clearance (unless otherwise agreed by both parties)?

A : DAP

B : DPU

C : DDP

D : CIF

Answer: C

Question 4

Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

A : Yes, because this rating indicates poor financial management practices

B : No, because a credit rating is only one financial tool to be used in determining financial competence

C : No, because a credit rating is not an appropriate decision-making tool

D : Yes, because this rating means that insolvency or liquidation is imminent

Answer: B

Question 5

The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstances?

A : Yes, so that the local pest control sector can decide between them who should bid

B : No, because they might receive too many irrelevant proposals which may delay the assessing process

C : No, because international vendors must also be notified of the opportunity

D : Yes, they must seek as many bids as possible, even if it takes longer

Answer: B

Page: 1 / 98

Total 486 Questions | Updated On: May 17, 2025

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