Top CIPS L4M4 Courses Online - Updated [May-2025]
L4M4 Practice Dumps - Verified By Test4Engine Updated 180 Questions
NEW QUESTION # 11
Compared with single sourcing, what is a key advantage to dual or multiple sourcing? Select TWO
- A. Low risk of failure to supply
- B. Supplier Loyalty
- C. It is easy to drive down costs
- D. There is a risk of failure to supply
- E. Economies of scale
Answer: A,C
Explanation:
The correct answers are 'it is easy to drive down costs' (as you can pit the suppliers against each other) and
'low risk of failure to supply' (if one supplier can't provide what you need, the other supplier might be able to).
Economies of scale and supplier loyalty are advantages of single-sourcing.
There is a risk of failure to supply is a risk associated with single sourcing.
There's a useful table of advantages and disadvantages of single / multi sourcing on p.22. Types of sourcing is a key topic for the exam.
NEW QUESTION # 12
Many organisations prefer a multi-sourcing approach because of the advantages it provides. Which of the following might be an advantage of multi-sourcing?
- A. It is the only approach that enables the buyer to isolate the best supplier from among many
- B. It is the only approach that supports the open tendering process
- C. It increases process flexibility and switching using a range of approved suppliers
- D. It helps the buyer to increase stock varieties to avoid stock-outs
Answer: C
Explanation:
Multi-sourcing allows organisations to diversify their supply base, providing flexibility, and reducing risk by having multiple suppliers. It is an effective strategy to prevent over-dependence on a single source and allows for competition among suppliers, promoting quality and ethical standards in the supply chain.
NEW QUESTION # 13
Roberto is running a tender in which his main concern is price. However he is keen to hear also about the companies' Corporate Social Responsibility Policies and how this will impact their delivery. Roberto is considering awarding the CSRquestion4 points in a weighted point system. If he does this, what weight should be given to the price?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
Explanation:
96 is the correct answer- weighted point systems should add up to 100 (as in 100%)
NEW QUESTION # 14
Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation. Which of the following is assessed at the pre-qualification stage?
- A. pricing structure, ethics and financial stability
- B. financial stability, capacity and capability
- C. capability, culture and pricing schedules
- D. capacity, capability and pricing structure
Answer: B
Explanation:
The correct answer is financial stability (this is done by using all of those lovely ratios in chapter 1.3) and capacity and capability (which are part of Carter's 10 Cs).
At PQQ stage you're looking purely at whether the supplier is good or bad (to put it simply). You don't give them details of your requirement yet, so they're not providing a quote / pricing structure / price schedule at this point in time. That would be at the next stage, IF they pass PQQ, when you issue the tender competition.
NEW QUESTION # 15
Scott is a procurement manager who is evaluating a bid from a supplier to provide a new IT system to his office that will be used by 100 employees. He is considering the total life-cycle costs. Which of the following should Scott consider? Select THREE
- A. Training
- B. Added value
- C. Acquisition Costs
- D. Functional Fit
- E. Maintenance
Answer: A,B,C
Explanation:
total life-cycle costs include; acquisition costs, maintenance and training.
Added value and functional fit are quality criteria that should also be evaluated when selecting a supplier, but do not fall under total life-cycle costs.
Note: total life cycle costs and whole life asset management are the same thing. You may see both terms used in the exam. I think CIPS is moving more towards Whole Life Asset Management now as the preferred vocabulary but they're the same thing.
NEW QUESTION # 16
Which of the following is a regulatory body which protects the rights of workers?
- A. FairTrade
- B. ILO
- C. WWF
- D. ISO
Answer: B
Explanation:
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.
NEW QUESTION # 17
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.
- A. environment
- B. ethics
- C. quality
- D. quantity
- E. time
Answer: A,B
Explanation:
ethics and environment are not a 'right of procurement'.
The 5 rights are price, quality, quantity, time and place.
NEW QUESTION # 18
Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?
- A. ISO27000
- B. ESG Policy
- C. ISO9001
- D. Anti-Slavery Policy
Answer: B
Explanation:
Robert should look at the supplier's ESG policy. This stands for Environmental Social Governance. So covers both his requirements for community (social) and environmental factors.
ISO 9001 is about Quality Management and ISO27000 about Information Security so these are in-correct answers. An Anti-Slavery Policy would not discuss the environment.
NEW QUESTION # 19
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.
- A. Financial stress score
- B. Rebate information
- C. Product pricing information
- D. Tender submission pricing
- E. Payment history
Answer: A,E
Explanation:
Payment history and financial stress scores provide insights into a supplier's financial health and stability.
This information is crucial for procurement professionals in assessing whether a supplier can fulfill long-term commitments, supporting responsible sourcing by mitigating financial risks.
NEW QUESTION # 20
In which type of market would you be most likely to find a 'perfect competition'?
- A. oligopoly
- B. monopoly
- C. monopolistic competition
- D. commodity
Answer: A
Explanation:
An oligopoly. Perfect competition is a situation in a marketplace where there is plenty of competition. A monopoly or monopolistic competition would have 'imperfect competition'
NEW QUESTION # 21
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. sustainability
- C. bulk discount
- D. on time in full deliveries
- E. cost plus pricing
Answer: A,B,D
Explanation:
The correct answers are innovation, on time in full deliveries and sustainability.
The other options are pricing mechanisms rather than 'added value'. Added Value is giving the buyer something extra that's not necessarily financial. It can be as simple as delivering orders quicker than expected, or having a dedicated customer service phone line. Something that makes their lives a little easier.
NEW QUESTION # 22
What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?
- A. Balance sheet (statement of financial position) and profit and loss account (statement of financial performance)
- B. Profit and loss account (statement of financial performance) and chairman's statement (in the annual report)
- C. Cash flow statement (statement of cash flow) and profit and loss statement (statement of financial performance)
- D. Cash flow statement (statement of cash flow) and balance sheet (statement of financial position)
Answer: A
Explanation:
The balance sheet and profit and loss account provide a comprehensive view of an organisation's financial health, showing assets, liabilities, and profits. These statements are essential in evaluating a supplier's financial capacity, aligning with responsible sourcing practices for financial stability.
NEW QUESTION # 23
Which of the following items would you expect to find on a balance sheet? Select THREE
- A. gross product sales
- B. stockholders' equity
- C. current assets
- D. net product sales
- E. current liabilities
Answer: B,C,E
Explanation:
current assets, current liabilities and equity can be found on a balance sheet. Net and gross sales will be found on a profit and loss account.
NEW QUESTION # 24
Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits. Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO
- A. cakes
- B. facilities management
- C. cleaning
- D. cereal bars and biscuits
Answer: B,C
Explanation:
Cleaning and Facilities Management are the most appropriate items to outsource. They would not outsource the making of confectionary products as this is the 'core' business.
See p.4 for "what is outsourcing?"
NEW QUESTION # 25
The Freedom of Information Act is a piece of UK legislation which allows members of the public to request information on issues such as public sector sourcing. When a request is made, it is compulsory for the public sector to provide this information to the public. Is this statement true?
- A. yes- the information must be provided within 28 days
- B. yes- the information must be posted publically online
- C. no- the public sector does not need to provide information on sourcing activities
- D. no- the public sector can choose not to publish information if it is not deamed to be in the public interest
Answer: D
Explanation:
the correct answer is 'no- the public sector can choose not to publish information if it is not deemed to be in the public interest'.
They use something called the 'public interest test' to determine if the information should be re-leased or not.
For example they may not respond to a request asking how many bullets the UK Army has in storage, as that would be detrimental to national security interests.
Responses to requests are made within 21 days, not 28.
NEW QUESTION # 26
Incoterms describe several aspects and responsibilities of transporting goods when sourcing internationally.
Which of the following is described by Incoterms? Select THREE.
- A. how long the transportation will take
- B. what form of transportation will be used
- C. which party arranges insurance
- D. how much the transportation will cost
- E. who is responsible for making duty and tariff arrangements
Answer: B,C,E
Explanation:
Incoterms describe who out of the buer and seller; organises transport and what type of transport this is, who pays for insurance, and who organises duty / tariff arrangements when the goods go through customs. See p.
131. Note- some students report a lot of questions on Incoterms in the exam, some say they only had 1. If you can, I'd learn them just to be safe.
NEW QUESTION # 27
Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?
- A. Yes, because that timeframe is internationally recognised as being appropriate
- B. No, because this timeframe will cause delays that are unacceptable to stakeholders
- C. No, because the complexity of the tender should inform the response timescale
- D. Yes, because it helps suppliers to plan and prioritise their work
Answer: C
Explanation:
Response times should be tailored to the complexity of the tender. Responsible sourcing encourages flexibility in setting realistic timelines that allow suppliers adequate time to prepare, supporting efficient and effective sourcing without unnecessary delays.
NEW QUESTION # 28
When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored.
Which of the following questions would be assessing any of the ESC criteria?
* Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?
* How do you promote equal opportunity for your employees, customers, and suppliers?
* What is the annual turnover and profitability of your company?
* Does your company have an anti-bribery policy?
- A. 2 and 3
- B. 1 and 3
- C. 1 and 4
- D. 2 and 4
Answer: D
Explanation:
Questions about equal opportunity and anti-bribery policies assess the supplier's commitment to social and ethical standards. These aspects are part of the ESC criteria, which align with responsible sourcing practices by ensuring suppliers maintain ethical workforce practices and governance.
NEW QUESTION # 29
Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable. Which of the following should Dylan look for in terms of quality management when appraising the suppliers?
- A. ESG
- B. ISO9001
- C. conformance specification
- D. Carter's 10 Cs
Answer: B
Explanation:
ISO9001 is Quality Management so is therefore the correct answer. The other options can be used to appraise suppliers but do not link directly or fully to Quality Management.
NEW QUESTION # 30
......
New (2025) CIPS L4M4 Exam Dumps: https://www.test4engine.com/L4M4_exam-latest-braindumps.html
Updated L4M4 Exam Dumps - PDF Questions and Testing Engine: https://drive.google.com/open?id=1DdwXJV8BvBdEGzQSLVfrjKoGhoIrIU9c