Free CIPS L4M4 Exam Questions

Become CIPS Certified with updated L4M4 exam questions and correct answers

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Total 523 Questions | Updated On: Sep 10, 2025

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Question 1

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 2

Which is an example of a criterion for supplier selection during a tender for a hospital build to demonstrate the people element of the 'triple bottom line'?

A : Specifications are designed with appropriately certified materials

B : Demonstrated commitment to a labour industry code of conduct

C : Project plan is designed to use reverse logistics

D : Building design is thermal efficient to meet carbon trust targets

Answer: B

Question 3

What are the factors that procurement department strives for in sourcing to create value for the business?

A : Price, Delivery, Cost, Ethics, Sustainability, Shortage

B : Price, Delivery, Quality, Ethics, Sustainability, Availability

C : Price, Gearing, Quality, Ethics, Sustainability, Turnover

D : Cost, Delivery, Quality, Turnover, Sustainability, Availability

Answer: B

Question 4

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 5

Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO

A : exchange rate

B : total life cycle costs

C : tariffs

D : batch quantities

E : tax

Answer: A,C

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Total 523 Questions | Updated On: Sep 10, 2025

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