Free CIPS L4M4 Exam Questions

Become CIPS Certified with updated L4M4 exam questions and correct answers

Page: 1 / 117

Total 585 Questions | Updated On: Sep 25, 2026

Add To Cart

Question 1

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 2

Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.

A : time

B : ethics

C : environment

D : quantity

E : quality

Answer: B,C

Question 3

FTSE100 and Sensex are examples of what?

A : stock markets

B : commodity indices

C : financial reports

D : public sector organisations

Answer: A

Question 4

Nikolas is responsible for sourcing elevators for the new shopping mall. As one of the requirements, the lift must be safe and convenient for both customers, children and people with disabilities. Nikolas suggests to his team that they should include specific technical and safety standards to the specification before carrying out tendering for the purchase. Which of the following is a benefit of adding standards to the specification?

A : Standards ensures that the specification presents a very clear and accurate requirements

B : Standards ensures that the purchase is at the lowest cost

C : Standards ensures that the number of tenders is minimum

D : Standards ensures that the suppliers will conform to the agreement during contract period

Answer: A

Question 5

Which of the following can be used to mitigate the risk of supply failure when sourcing a strategic product from oversea?

A : Single sourcing

B : Offshoring

C : In-sourcing

D : Dual sourcing

Answer: D

Page: 1 / 117

Total 585 Questions | Updated On: Sep 25, 2026

Add To Cart