CIPS L4M4 Practice Exams
Last updated on Oct 21,2026- Exam Code: L4M4
- Exam Name: Ethical and Responsible Sourcing
- Certification Provider: CIPS
- Latest update: Oct 21,2026
Which of the following should be considered when calculating ratios relating to a supplier’s liquidity?
- A . inventory
- B . reserves
- C . receivables
- D . profit
A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market.
Is it good practice for the procurement buyer to make sourcing recommendations?
- A . Yes, the procurement buyer should assess and take all decisions to award the tender independently of the business managers to avoid conflict of interest
- B . No, it is a lengthy, costly, and unnecessary step for the procurement buyer to engage business managers
- C . No, the buyer’s recommendations are not relevant to the final sourcing decision, which must be taken by the business managers
- D . Yes, the procurement buyer can advise on the competitive proposal but should engage with the business managers about the decision to award the tender
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider ‘added value’.
Which of the following is considered an ‘added-value solution’? Select THREE
- A . innovation
- B . on time in full deliveries
- C . bulk discount
- D . sustainability
- E . cost plus pricing
Bribery is considered an unethical business practice.
What constitutes a bribe?
- A . anything that is of value to the recipient
- B . something that has monetary value
- C . something of significant monetary value
- D . anything that can be traded illegally
It is good practice for the procuring organisation’s auditors to undertake the following upon completion of a supplier’s audit. Select the TWO that apply.
- A . Do nothing, after all, this is a known supplier incapable of serious breaches
- B . Inform the supplier of any non-conformances and improvement opportunities
- C . Report non-compliance to police and have the supplier arrested for lapses
- D . Prepare an audit report that may be shared with the supplier in advance
- E . Call for a meeting with colleagues and share confidential details of the audit
When would a procurement professional use the Pareto principle?
- A . when considering changing a supplier
- B . when conducting a value analysis
- C . when looking at whole-life-cycle costs
- D . when appraising a supplier
A procurement manager has a new contract to award. They know there will be considerable interest from potential suppliers, as there are approximately twelve companies in the market.
Which of the following is a benefit of using a full competitive tendering process for this new contract?
- A . All suppliers will know how much the others have bid
- B . Only the procurement manager can decide who wins
- C . All bidders will be treated equally
- D . It is a quick and informal process
Which document would typically include a clause about the environmental criteria expected from suppliers?
- A . Invitation to Tender
- B . Supplier Code of Conduct
- C . Purchase Order
- D . Request for Information
Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?
- A . freedom of Belief and to change beliefs
- B . the right to be treated equally
- C . the right to free speech
- D . the right to change nationality
Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?
- A . freedom of Belief and to change beliefs
- B . the right to be treated equally
- C . the right to free speech
- D . the right to change nationality