CIPS L4M4 Practice Exams
Last updated on Oct 22,2026- Exam Code: L4M4
- Exam Name: Ethical and Responsible Sourcing
- Certification Provider: CIPS
- Latest update: Oct 22,2026
Kiran is appraising some potential suppliers and has noticed that one of these suppliers has an extremely high gearing ratio.
What would this suggest?
- A . the supplier is extremely profitable
- B . the supplier has a lot of long-term debt
- C . the supplier has a high cost of sales
- D . the supplier has a strong return on investment
What type of ratio is used to measure a company’s ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?
- A . Earnings per share
- B . Dividend per share
- C . Liquidity ratio
- D . Profitability ratio
Which of the following would you use to work out a company’s gearing ratio? Select TWO.
0current liabilities
- A . net profit
- B . shareholder equity
- C . long term debt
- D . gross sales
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.
- A . Violating the terms of the supplier contract
- B . Define specific corrective actions for the supplier
- C . Daily brainstorming meetings with the supplier
- D . Employing the supplier’s staff for job training
- E . Running supplier development programmes
GDP is an economic index that a procurement professional can use to measure economic data.
What does GDP tell you?
- A . the value of public limited companies within a country
- B . the monatary value of the goods manufactured in a financial period
- C . the value of commodities such as steel, oil and wheat at a point in time
- D . average changes in price over a year
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
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
A company has actively included supporting of disadvantaged groups within their ESG commitment.
Which of the following groups are considered disadvantaged?
- A . endangered species
- B . pregnant women and children
- C . international suppliers
- D . Muslims