Free CIPS L4M4 Exam Questions

Become CIPS Certified with updated L4M4 exam questions and correct answers

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Total 585 Questions | Updated On: Mar 05, 2026

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Question 1

Which of the following is considered as part of ESG?

A : bribery, corruption and the environment

B : market conditions and product lifecycle

C : liquidity, gearing and profitability

D : economic and social governance

Answer: B

Question 2

Which of the following are most likely to be costs associated with outsourcing?1. Contract performance management cost2. Production workers' wages3. Overheads4. Procurement professional salary

A : 1 and 2 only

B : 2 and 4 only

C : 1 and 4 only

D : 2 and 3 only

Answer: C

Question 3

Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

A : The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply

B : Financial assessments provide a holistic view of a company's capability, including quality and delivery performance

C : A supplier who is highly profitable will be charging prices higher than the average market rate

D : If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs

Answer: A

Question 4

Which of the following are signs that modern-day slavery might be taking place within the supply chain? Select THREE.

A : suspiciously low labour costs

B : poor quality products

C : workers that live on-site

D : suppliers who speak English as a second language

E : supplier based in a country with a low score on the Corruption Perception Index

Answer: A,B,C

Question 5

Which of the following is an example of intracompany trading? Select TWO

A : a manufacturer in the UK buys raw copper from a supplier in Chile

B : two companies owned by the same entity conduct business

C : two companies join together to create a new product

D : two departments within the same company collaborate on a project

E : cleverness

Answer: B,D

Page: 1 / 117

Total 585 Questions | Updated On: Mar 05, 2026

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