Pass Your L4M4 Dumps as PDF Updated on 2024 With 123 Questions
CIPS L4M4 Real Exam Questions and Answers FREE
CIPS L4M4 Exam Syllabus Topics:
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NEW QUESTION # 70
Polygon Incorporated is a new company in the mining industry, which often gets bad press due to issues of sustainability. Which of the following should Polygon Incorporated consider when developing sustainable business practices?
- A. economic, ethical and environmental
- B. fraud, bribery and corruption
- C. efficiency, effectiveness, impact
- D. people, profit, planet
Answer: D
Explanation:
The three pillars of sustainability are profit, people and planet. This may also be referred to as social, economic and environmental.
NEW QUESTION # 71
Which of the following are primary sources of data? Select TWO.
- A. trade fairs and exibits
- B. published price lists
- C. market reasearch commissioned by a rival company
- D. economic indices such as PPI or CPI
- E. phone calls with current suppliers
Answer: A,E
Explanation:
Primary data includes trade fairs and exhibits, and phone calls to current suppliers. The others are examples of secondary data.
Remember primary= you do it yourself, Secondary = someone else did it.
NEW QUESTION # 72
A Request for Quotation asks a supplier to submit a price only, with no other details provided. Is this TRUE?
- A. Yes- this ensures the cheapest supplier is appointed
- B. No - specifications, technical details and quantities can also be provided
- C. No - quotations provide samples too
- D. Yes- price is the only factor considered
Answer: B
Explanation:
Request for Quotations can include more details than just prices. They can include specs and technical drawings and samples. It's like saying 'we can give you this price with these conditions'.
The other no answer is wrong because RfQ don't always include samples. A sample wouldn't be possible for a quote for an IT consultancy piece of work.
NEW QUESTION # 73
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. bulk discount
- B. on time in full deliveries
- C. cost plus pricing
- D. innovation
- E. sustainability
Answer: B,D,E
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 # 74
What is a major benefit to using Incoterms when sourcing goods internationally?
- A. it replaces lengthy contractual clauses
- B. it ensures ethical business practices
- C. it ensures value for money
- D. it replaces the need for insurance
Answer: A
Explanation:
Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it's completely random how many you'll get on this topic.
NEW QUESTION # 75
What would an EBITDA ratio show you?
- A. how effectively a business uses its assets to generate sales
- B. how profitable a business is
- C. how much of a business's funding is made up of long term debt
- D. how solvent a business is
Answer: B
Explanation:
EBITDA stands for 'earnings before interest, tax, depreciation and amortization'. This is a profitability ratio and would show how profitable a business is.
EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com)
NEW QUESTION # 76
Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?
- A. send out a RFQ
- B. conduct an open competition
- C. speak with his current suppliers
- D. send out a RFI
Answer: D
Explanation:
Raja should send out a RFI- request for information; this will allow him to gain feedback from the marketplace prior to tender.
Speaking only with current suppliers will not provide all the information Raja requires.
He should not send out a request for quotation since he is still conducting market research An open competition would be how he can procure, after he's completed his research
NEW QUESTION # 77
Which of the following incoterms has the lowest risk to the buyer?
- A. delivered duty paid
- B. free on board
- C. carriage and insurance paid to
- D. exworks
Answer: A
Explanation:
The lowest risk to the buyer is 'delivered duty paid'. This is because the supplier does all the work transporting the items to the buyer's premises. Incoterms_2020_chart | Intersped
NEW QUESTION # 78
Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?
- A. yes- ethics and sustainability show that the products are fit for purpose
- B. no- 'value for money' is concerned with achieving the lowest price
- C. no- 'value for money' only concerns price and if the product is fit for purpose
- D. yes- ethics and sustainability form part of 'value for money'
Answer: D
Explanation:
"yes- ethics and sustainability form part of 'value for money' " is the correct answer.
There are several factors that represent value for money and these are listed on p.3. These include; price, delivery, quality, ethics, sustainability and availability.
NEW QUESTION # 79
Under what circumstances can a buyer reduce timescales for a tender in the Public Sector?
- A. if tenders are received by electronic submission exclusively
- B. if the competition is restricted
- C. when the tender is of low value
- D. if there are fewer than 5 bidders
Answer: A
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 # 80
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?
- A. interest in the tender opportunity is likely to be high
- B. the requirement is complex
- C. the suppliers are likely to be unqualified
- D. interest in the tender opportunity is likely to be low
Answer: A
Explanation:
you would use a restricted approach when interest is likely to be high. The buyer needs a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations.
For complex requirements you could use both an open or restrictive tender- the difference between the approaches is about how many bids you're likely to get rather than the complexity of it.
NEW QUESTION # 81
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. No- audits will only reveal financial issues not ethical ones
- B. No- Ali should simply ask the supplier's about their ethical practices
- C. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations
- D. Yes- audits always uncover ethical violations such as modern day slavery
Answer: C
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 # 82
When sourcing an item of strategic importance and high value in the public sector, is it important to advertise this publicly?
- A. no- buyers in the public sector do not source strategic items
- B. yes- the public sector should advertise through the Freedom of Information Act
- C. yes- the public sector should advertise the opportunity as a call for competition
- D. no- buyers can approach known contractors
Answer: C
Explanation:
The correct answer is 'yes- the public sector should advertise as a call for competition'. They do this in the Official Journal of the European Union (OJEU). Public Sector has to be transparent about everything and treat all suppliers equally. So they can't just approach the ones they like.
In the study guide it says OIEU and this is a typo. It's OJEU.
What is The OJEU in 2 minutes or less (trackerintelligence.com)
NEW QUESTION # 83
Which of the following Incoterms has the lowest risk for the supplier?
- A. delivered duty paid
- B. ex works
- C. free on board
- D. delivered at terminal
Answer: B
Explanation:
Ex-Works has the lowest risk to the supplier- in Exworks the buyer collects the items directly from the supplier - so they have all the issues and risks of transporting it back home.
There are many question on Incoterms CIPS can ask. But as there's such a huge bank of questions it's really hit or miss if you'll get one of those question. Two students sitting the exam at the same time in the same study centre can get different question sets. One person can get 3 Incoterm questions and the other gets 0.
I would learn the major ones- the ones at the ends of the table in particular because these are the ones question are likely to be about. Ex works / Free carrier and Delivered at Place Unloaded/ De-livered Duty Paid in particular.
I like this graph as I'm a visual person. I think it makes it easier to understand than the study guide:
Shipping Incoterms: the Complete Guide - Guided Imports
NEW QUESTION # 84
Yolo Inc. have recently run a tender opportunity to find a suitable supplier of yoyos and they have received a number of bids. The supplier will become a strategic partner to the business as yoyos are vital to the success to Yolo Inc. The tender asked for both price submissions and had a number of quality questions. Eamon is the Procurement Manager of Yolo Inc and is responsible for selectingthe most appropriate supplier. How should Eamon appraise the bids?
- A. evaluate the bids himself as this is a complex requirement
- B. organise a cross-functional team of procurement personnel as they will have experience in assessing price and quality of bids
- C. organise a cross-functional team to assess the bids as people from other departments may have important information and experience of yoyos
- D. evaluate the bids himself as this is a strategic purchase
Answer: C
Explanation:
Eamon should use a cross-functional team (this rules out two of the options). The purpose of using a cross-functional team is to use the knowledge of people from other departments as they may better understand the service required and help assess any technical questions. Therefore a cross-functional team of procurement personnel, isn't cross-functional (they're all the same function). Yoyos is a bit of a silly example, the exam questions are a little more serious- but the learning outcome is the same; use a cross-functional team to evaluate bids.
NEW QUESTION # 85
Steff is a procurement manager at Giant Buttons Ltd who are considering offshoring a small section of their manufacturing operations. Which of the following is a risk of offshoring that Steff should consider.
- A. importation rules and tariffs
- B. payments by electronic bank transfer
- C. exportation rules and tariffs
- D. lower operating costs
Answer: A
Explanation:
The correct answer is importation rules and tariffs. This is because in offshoring some of the manufacturing will be done in another country then shipped back to the UK. The products will have to go through customs so may be subject to tariffs and duties.
Steff's not exporting anything in the scenario and paying electronically and getting lower costs are not RISKS.
NEW QUESTION # 86
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