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: Apr 22, 2026

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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

Which of the following sectors is legally bound by OJEU procurement procedures?

A : Private sector

B : Public sector

C : Third sector

D : Not-for-profit sector

Answer: B

Question 3

Which of the following is the act of entering into a financial contract in order to protect against unexpected, expected or anticipated changes in currency exchange rates?

A : Gold standard

B : Credit rating scores

C : Fiat currency

D : Currency hedging

Answer: D

Question 4

The use of Incoterms will eliminate all risks involved in international trade transactions. Is this statement true?

A : No, they can reduce risks but will not eliminate them

B : No, they will only provide assurance about the quality of goods

C : Yes, they are popular because all risks are avoided

D : Yes, they eliminate all the risks of buying from an overseas supplier

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: Apr 22, 2026

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