Free CIPS L4M4 Exam Questions

Become CIPS Certified with updated L4M4 exam questions and correct answers

Page: 1 / 113

Total 565 Questions | Updated On: Jan 14, 2026

Add To Cart

Question 1

Which of the following is the difference between Request for Information (RFI) and Request for Quotation (RFQ)?

A : RFI helps the business to develop the sourcing strategy

B : RFI is utilized to assess and compare the cost structures offered by various suppliers

C : RFQ aims to know about the supplier-s background

D : RFQ contains only the information of specification

Answer: A

Question 2

Which of the following are reasons why a global organisation opts to use transfer pricing arrangements? Select TWO that apply:

A : Improving local economy

B : No risk of tax evasion

C : Leveraging local sourcing better

D : Simply internal accounting procedure

E : Reduction in international tax expense

Answer: A,D

Question 3

Which of the following are reasons why a global organisation opts to use transfer pricing arrangements? Select TWO that apply:

A : Improving local economy

B : No risk of tax evasion

C : Leveraging local sourcing better

D : Simply internal accounting procedure

E : Reduction in international tax expense

Answer: A,D

Question 4

Which of the following are limitations of ratio analysis? Select TWO that apply:

A : Ratios are only about financial situation

B : Same ratios are incomparable between companies in the same sector

C : Ratios use historic data

D : Ratios take inflation into account

E : Operational changes always emerge when calculating ratios

Answer: A,C

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 selectingthe most appropriate supplier. How should Eamon appraise the bids?

A : evaluate the bids himself as this is a complex requirement

B : evaluate the bids himself as this is a strategic purchase

C : organise a cross-functional team to assess the bids as people from other departments may have important information and experience of yoyos

D : organise a cross-functional team of procurement personnel as they will have experience in assessing price and quality of bids

Answer: C

Page: 1 / 113

Total 565 Questions | Updated On: Jan 14, 2026

Add To Cart