L4M4 Certification Overview - [Oct 29, 2025] Latest L4M4 PDF Dumps
The Best CIPS L4M4 Study Guides and Dumps of 2025
CIPS L4M4 Exam Syllabus Topics:
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NEW QUESTION # 74
Which of the following are examples of secondary data? Select TWO
- A. commissioned market research
- B. comparison websites
- C. trade fairs and exhibitions
- D. economic indices
- E. networking
Answer: B,D
Explanation:
economic indices and comparison websites are secondary sources of data. The other three are examples of primary sources of data.
Primary= you get the data yourself
Secondary = you find the data from somewhere else
NEW QUESTION # 75
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. Dividend per share
- B. Liquidity ratio
- C. Earnings per share
- D. Profitability ratio
Answer: B
Explanation:
Liquidity ratios, such as the current and quick ratios, evaluate a company's ability to meet short-term liabilities with current assets. This metric is crucial for assessing a supplier's financial stability, ensuring continuity and reliability in the supply chain, which aligns with ethical and responsible sourcing principles.
NEW QUESTION # 76
A procurement manager has decided to use a local newspaper to source quotes from external suppliers. Why is it important to advertise tenders? Select TWO that apply.
- A. To gain value for money
- B. To gain green procurement
- C. To gain insights from the market
- D. To gain tactical sourcing
- E. To avoid complex bids
Answer: A,C,D,E
Explanation:
Advertising tenders is crucial for achieving value for money by encouraging competitive bids, which can lead to better pricing and service offerings. It also provides insights into the market by revealing the capabilities and innovations of various suppliers, aiding in informed decision-making.
Exact Extract from Study Guide:
"Inviting suppliers to take part in a competitive tender may reduce the potential for the biased selection of a supplier. Time, money and resource could be saved..."
NEW QUESTION # 77
Under what circumstances can a buyer reduce timescales for a tender in the Public Sector?
- A. when the tender is of low value
- B. if the competition is restricted
- C. if there are fewer than 5 bidders
- D. if tenders are received by electronic submission exclusively
Answer: D
Explanation:
If tenders are received by electronic submission exclusively, the buyer can reduce the timescale. On average the time for a standard tender submission can be reduced by 5 days if bids are submitted electronically.
*Note* this is based off current PCR Regs 2015 which are being superseded in October 2024 by new legislation. We currently don't know what the new regs will say on this. If it's different, my best guess is CIPS will remove any question about it from their exam- because the study guide would be wrong and that would lead to complaints.
NEW QUESTION # 78
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. 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 - B. compliance with Codes of Conduct from professional bodies is mandatory
- C. ethical behaviour is impossible to determine as issues such as Modern Slavery often go undetected
Answer: A
Explanation:
A supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs is the correct answer.
The other options are wrong:
1) Compliance with Codes of Conduct from professional bodies is optional. E.g. CIPS - no organi-sation is forced to comply with CIPS.
2) Unethical behaviour is not impossible to detect, it may be difficult but with correct due diligence and things like audits it's completely possible
3) ISO 14001 is quality management so is irelevent.
NEW QUESTION # 79
Which documents are used to allow the movement of goods?
* Export or import license
* Non-disclosure agreement
* Customs declaration
* Conflict of interest declaration
- A. 2 and 3 only
- B. 1 and 4 only
- C. 1 and 3 only
- D. 2 and 4 only
Answer: C
Explanation:
To facilitate the legal movement of goods across borders, specific documentation is required. An export or import license authorizes the shipment of goods to or from a particular country. A customs declaration provides details about the goods being transported, ensuring compliance with the importing country's regulations. Non-disclosure agreements and conflict of interest declarations are related to confidentiality and ethical considerations, not the physical movement of goods.
Exact Extract from Study Guide:
"Documents and systems that allow the movement of goods within the EU:
* T1 Documents
* Import/Export Licence
* Single Administrative Document
* New Computerised Transit System
* Customs Declaration Service"
NEW QUESTION # 80
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?
- A. work out the supplier's gearing ratio
- B. use the Return on Investment Ratio
- C. do an Acid Test
- D. work out the supplier's EBITDA
Answer: A
Explanation:
Greg needs to use a gearing ratio. Gearing is a measure of how the business is being funded and is based on the ratio of debt to equity Gearing comes up a lot in the exam. Also make sure you know what Return on Investment, Acid Test and EBITDA are.
Return on Investment (ROI): How to Calculate It and What It Means (investopedia.com) EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com) Acid-Test Ratio: Definition, Formula, and Example (investopedia.com)
NEW QUESTION # 81
Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?
- A. threat of substitutions
- B. improved quality control
- C. less inventory
- D. killset of supplier is higher
Answer: B
Explanation:
One of the biggest advantages to making an item over buying it is 'improved quality control'.
When you make the product yourself, you can set the quality parameters you require and aren't re-stricted to, or dependant on, what the supplier does. The other options are incorrect- making stuff inhouse would mean you hold more inventory. If the supplier has a higher skillset than you, you would outsource. Threat of substitutions wouldn't impact this decision.
For a list of pros and cons relating to the 'make or buy' decision see p.5. This is a hot topic for the exam.
NEW QUESTION # 82
Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?
- A. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations
- B. No- audits will only reveal financial issues not ethical ones
- C. Yes- audits always uncover ethical violations such as modern day slavery
- D. No- Ali should simply ask the supplier's about their ethical practices
Answer: A
Explanation:
The correct answer is 'yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations'. The other options are incorrect:
1) you can do many types of audit- financial, ethical, Health and Safety etc
2) asking a supplier about their ethical practices isn't likely going to get you accurate information. They'll just tell you what they think you want to hear
3) audits are great- but they don't ALWAYS uncover issues. Always is the key word in that sentence which makes it incorrect.
NEW QUESTION # 83
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. sustainability
- B. bulk discount
- C. on time in full deliveries
- D. innovation
- E. cost plus pricing
Answer: A,C,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 # 84
Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.
- A. the reduction in the need to continually invest in new machinery
- B. overheads can be kept as effective as possible
- C. there are more resources in-house
- D. the product or service is core to the organisation
Answer: A,B
Explanation:
Reasons to outsource include; 'overheads can be kept as effective as possible' and 'the reduction in the need to continually invest in new machinery'.
When you outsource, you transfer the costs of overheads to the supplier and it is their responsibility to buy new machinery as and when is required. For example if you outsource cleaning, the cleaning company is responsible for replacing the hoovers and floor cleaner The other two options would be reasons to keep something 'in-house'.
NEW QUESTION # 85
A buyer for a large manufacturing organisation is assessing a sole supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole supplier proposal?
- A. Yes, but only if the buyer decides to re-start the tender opportunity
- B. No, because a buyer has no leverage over a sole supplier
- C. No, the buyer must make the decision based on the existing information
- D. Yes, the buyer can negotiate on aspects such as after-sales service
Answer: D
Explanation:
In cases where price differentiation is minimal, negotiating on added-value services like after-sales support can offer additional benefits. This aligns with responsible sourcing by focusing on long-term value and fostering a cooperative relationship with the supplier.
NEW QUESTION # 86
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?
- A. single sourced
- B. sole sourced
- C. dual sourced
- D. multiple sourced
Answer: B
NEW QUESTION # 87
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
- A. asset management
- B. supplier selection
- C. develop strategy
- D. contract award
Answer: B
Explanation:
At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk).
At develop strategy stage you're not even looking at suppliers yet- you're just deciding what you need. At contract award and asset management it's too late.
CIPS procurement cycle - Procurement Supply Cycle | CIPS
NEW QUESTION # 88
Which of the following payment mechanisms is most beneficial to the buyer?
- A. open/ credit account
- B. sight draft
- C. cash in advance
- D. term / time draft
Answer: A
Explanation:
Open account (aka credit account) is most beneficial to the buyer. The supplier delivers the goods then the buyer pays.
Cash in advance is most beneficial to the supplier. The buyer pays for the item before receiving it.
This is a known exam topic.
NEW QUESTION # 89
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 supports the open tendering process
- B. It increases process flexibility and switching using a range of approved suppliers
- C. It helps the buyer to increase stock varieties to avoid stock-outs
- D. It is the only approach that enables the buyer to isolate the best supplier from among many
Answer: B
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 # 90
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