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
In a sustainable procurement policy, what is the primary purpose of including lifecycle analysis?
- A . To ensure products are competitively priced
- B . To assess the total environmental impact of a product
- C . To simplify the procurement process
- D . To focus solely on the recycling potential of a product
Which of the following are primary sources of data? Select TWO.
- A . market reasearch commissioned by a rival company
- B . economic indices such as PPI or CPI
- C . published price lists
- D . trade fairs and exibits
- E . phone calls with current suppliers
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms.
What is the purpose of these rules?
- A . to state which products can be exported from which countries
- B . to ensure buyers and suppliers pay the correct level of tax on imported and exported goods
- C . to describe the point at which an item is considered delivered
- D . to provide internationally recognized product descriptions
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms.
What is the purpose of these rules?
- A . to state which products can be exported from which countries
- B . to ensure buyers and suppliers pay the correct level of tax on imported and exported goods
- C . to describe the point at which an item is considered delivered
- D . to provide internationally recognized product descriptions
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?
- A . Recommend remedial action
- B . Seek compensation
- C . Terminate the contract
- D . Research alternative suppliers
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?
- A . Recommend remedial action
- B . Seek compensation
- C . Terminate the contract
- D . Research alternative suppliers
Which of the following is not a indices that measures economic data?
- A . PPI
- B . CPI
- C . GDP
- D . ISO
Which of the following items would you expect to find on a balance sheet? Select THREE
- A . current assets
- B . current liabilities
- C . net product sales
- D . stockholders’ equity
- E . gross product sales
Which of the following items would you expect to find on a balance sheet? Select THREE
- A . current assets
- B . current liabilities
- C . net product sales
- D . stockholders’ equity
- E . gross product sales
A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with.
Which of the following statements is true?
- A . compliance with Codes of Conduct from professional bodies is mandatory
- B . ethical behaviour is impossible to determine as issues such as Modern Slavery often go undetected
- C . the buyer should ask suppliers to be accredited to ISO9001
a supplier who follows the CIPS Code of Conduct is more likely to meet the buyer’s needs