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
Guillerme is a Category Manager within the procurement department of a Manufacturing company. In his Category there are 200 items he procures, and he has recently undertaken an ABC analysis of these.
Which of the following items would be C category items?
- A . high value items
- B . one-off purchases
- C . tail spent
- D . strategic sourcing
bypass the need to comply with other voluntary or legal codes
- A . 1 and 2
- B . 2 and 3
- C . 1 and 4
- D . 1 and 3
How can a buyer monitor a supplier’s ethical workforce standards throughout a long-term contract?
- A . Check the International Labour Organisation’s database regularly for information specifically about that supplier
- B . Request a completed self-assessment by the supplier on a monthly basis
- C . Commission periodic audits by specialist third parties to highlight any malpractice
- D . Contact management directly on a periodic basis, as stipulated in contract terms
Single sourcing is only used by buyers where the total requirement is too small to justify splitting orders among more suppliers. Is this statement correct?
- A . No, because single sourcing should only be used where there is just one supplier in the market
- B . Yes, because many suppliers tend to increase stock variety and stock proliferation
- C . No, because single sourcing may also be used when a requirement demands expensive set-up costs
- D . Yes, because single sourcing works well within a volatile supply environment
The gross profit of a company can be calculated by using a simple formula.
What is this?
- A . total revenue – cost of sales
- B . assets – liabilities
- C . cost of sales – fixed assets
- D . debt owed – total sales
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
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.
- A . location
- B . distribution
- C . reputation
- D . quality
- E . price
Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?
- A . Yes, because this rating indicates poor financial management practices
- B . No, because a credit rating is only one financial tool to be used in determining financial competence
- C . No, because a credit rating is not an appropriate decision-making tool
- D . Yes, because this rating means that insolvency or liquidation is imminent
In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own
requirement in order to ensure harmony.
Which negotiation tactic is the supplier using?
- A . competitive
- B . collaborative
- C . compromising
- D . accommodating
Ishikawa Fishbone
- A . 1 and 2 only
- B . 1 and 3 only
- C . 2 and 3 only
- D . 3 and 4 only