Free Preparation Discussions
MENU
CIPS L4M4 Exam Questions
- Topic 1: Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
- Topic 2: Understand the key processes that can be applied to the analysis of potential external suppliers: This section examines analyzing market data, obtaining quotations/tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
- Topic 3: Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Free CIPS L4M4 Exam Actual Questions
Note: Premium Questions for L4M4 were last updated On Jun. 20, 2025 (see below)
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?
Greg needs to use a gearing ratio. Gearing is a measure of how the business is being funded and is based on the ratio of debt to equity Gearing comes up a lot in the exam. Also make sure you know what Return on Investment, Acid Test and EBITDA are.
Return on Investment (ROI): How to Calculate It and What It Means (investopedia.com)
EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com)
Acid-Test Ratio: Definition, Formula, and Example (investopedia.com)
Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.
Total Quality Management (TQM) practices and ISO 9001 certification are indicators of a supplier's commitment to quality. Responsible sourcing evaluates these factors to ensure suppliers meet high-quality standards and continuous improvement expectations.
ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors. What should ABC do?
ABC should do a 'root cause analysis' to find out where the issue has come about, and why. From there, once they know what the breach is and how serious it is, they can suggest corrective action.
They can't jump straight to terminating the contract or seeking damages as it's not the supplier itself but rather the subcontractor. Also that would be really hasty considering we don't know what the issue is and what the market conditions are like. That supplier may be the only one who can provide the product. We also don't know if the supplier knows about the issue themselves.
Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities
Gearing measures how much of an organisation's long-term funding is made up of long term debt and loans. Therefore the correct answers are 'shareholder equity' and 'long term debt'.
There are many question about financial ratios that can come up on the exam. If you're unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I'm not associated with the makers of this video but think they're really good at explaining things to beginners) Gearing Ratio explained (youtube.com)
Which of the following is a regulatory body which protects the rights of workers?
ILO = the International Labour Organisation.
ISO is the International Standardisation Organisation- they also come up in this exam.
Fair Trade is about paying suppliers properly.
WWF is the World Wildlife Foundation, or if you watched wrestling in the 90s, the original WWE. You do not need to know about wildlife or wrestling for this exam.
- Select Question Types you want
- Set your Desired Pass Percentage
- Allocate Time (Hours : Minutes)
- Create Multiple Practice tests with Limited Questions
- Customer Support
Franklyn
18 days agoMarylin
2 months agoMariann
3 months agoMalika
4 months agoScarlet
5 months agoCharolette
5 months agoMeghan
6 months agoScarlet
6 months agoFelicidad
7 months agoNelida
7 months agoSylvie
7 months agoIndia
8 months agoJovita
8 months agoLoren
8 months agoRoosevelt
9 months agoSommer
9 months agoMing
9 months agoCelia
9 months agoShelia
10 months agoRefugia
10 months agoKristel
10 months agoElise
10 months agoSolange
11 months agoElbert
1 years agoEdelmira
1 years agoLyla
1 years agoKanisha
1 years agoMarva
1 years agoGoldie
1 years agoNelida
1 years ago