Free PDF 2026 Reliable CIPS L4M4 Training Questions

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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Topic 2	Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 3	Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 4	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

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CIPS Ethical and Responsible Sourcing Sample Questions (Q249-Q254):

NEW QUESTION # 249
A buyer has discovered their supplier has taken the passports of some of their workforce. The supplier has offered the buyer a discount against the contract, but the discount only applies if the buyer does not report this finding. Which ethical concerns should the buyer report to the necessary stakeholders?
* Fraudulent activity
* Bribery
* Modern slavery
* Breach of confidentiality

A. 2 and 4 only
B. 2 and 3 only
C. 1 and 4 only
D. 1 and 3 only

Answer: B

Explanation:
The withholding of passports is a potential indication of modern slavery, and the offer of a discount to avoid reporting this is a form of bribery. Reporting these ethical concerns aligns with responsiblesourcing practices and is critical for maintaining a supply chain free from human rights abuses.

NEW QUESTION # 250
Which of the following would you use to work out a company's gearing ratio? Select TWO.
0current liabilities

A. shareholder equity
B. long term debt
C. net profit
D. gross sales

Answer: B,C

Explanation:
Gearing measures how much of an organisation's long-term funding is made up of long term debt and loans.
Therefore the correct answers are 'shareholder equity' and 'long term debt'.
There are many question about financial ratios that can come up on the exam. If you're unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I'm not associated with the makers of this video but think they're really good at explaining things to beginners) Gearing Ratio explained (youtube.com)

NEW QUESTION # 251
Which of the following are procurement procedures permissible under EU Public Procurement rules? Select TWO that apply.

A. Public procedure
B. Conformance procedure
C. Open procedure
D. Complex procedure
E. Restricted procedure

Answer: C,E

Explanation:
Under EU Public Procurement rules, the permissible procurement procedures include the Open Procedure and the Restricted Procedure. The Open Procedure allows any interested party to submit a tender, while the Restricted Procedure involves a two-stage process where only selected candidates are invited to submit tenders. These procedures are designed to ensure transparency, competition, and equal treatment in public procurement.
Exact Extract from Study Guide:
"The EU Public Procurement Directive outlines several procedures including Open Procedure and Restricted Procedure, which are designed to facilitate fair and transparent procurement processes."

NEW QUESTION # 252
The balance sheet (Statement of Financial Position) is one of the financial statements used in providing important information required in determining the supplier's financial stability. The balance sheet contains information on such items as...

A. Capital employed, operating expenses, and net profit
B. Cash receipts from customers
C. Short-term liabilities (unpaid taxes and bank overdraft)
D. Liquidity ratios, return on capital employed, and gearing

Answer: C

Explanation:
The balance sheet provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and equity. Short-term liabilities, such as unpaid taxes and bank overdrafts, are obligations the company must settle within a year and are critical indicators of the company's liquidity and financial health.
Exact Extract from Study Guide:
"The balance sheet includes details of current liabilities, such as unpaid taxes and bank overdrafts, which are essential for assessing a supplier's short-term financial obligations and overall stability."

NEW QUESTION # 253
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

A. Allow the supplier to complete current orders placed, while pursuing an alternative source to change to as soon as approved
B. Remove all business and inform press organisations, who will in turn bring the issue to the attention of formal governmental organisations who can take action
C. Immediately raise the issue with the supplier and jointly develop a timely action plan to be implemented before a repeat audit
D. Immediately halt all orders with the supplier, make a record of the violation in the supplier database, and switch to an alternative source of supply

Answer: C

Explanation:
Addressing human rights issues collaboratively by developing an action plan allows for improvement and correction. This approach is consistent with ethical sourcing principles, which encourage responsible intervention to correct and improve supply chain practices rather than punitive measures that may not lead to long-term change.

NEW QUESTION # 254
......

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