Free CIPS L4M4 Exam Actual Questions

The questions for L4M4 were last updated On Jan 6, 2025

Question No. 1

The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?

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Correct Answer: A

Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.


Question No. 2

FTSE100 and Sensex are examples of what?

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Correct Answer: A

they are stock markets.

What is the FTSE 100 Index? Complete Beginner's Guide (moneycheck.com)

BSE SENSEX -- Wikipedia


Question No. 3

When selecting a supplier on technical merit, its important that the supplier is a good 'functional fit' for the organisation. What is meant by 'functional fit'?

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Correct Answer: B

The correct answer is 'the supplier is able to work at the same technical level as the buyer'. It's about being able to integrate the businesses together in terms of IT systems and such like.


Question No. 4

Which of the following is not a type of fraud that procurement professionals should be vigilant for?

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Correct Answer: A

Coercion is not a type of fraud. The other three are.


Question No. 5

Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?

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Correct Answer: D

A cash flow statement shows the money coming in and out. This would therefore show whether a supplier has enough money coming in, to be able to pay some of it out to a subcontractor.

P&L and Balance Sheets look more broadly at finances, rather than saying what's physically in the bank at a specific given time.

Do learn the difference between these three financial documents for the exam.

Balance Sheet: , Components, and Examples (investopedia.com)

Profit and Loss Statement Meaning, Importance, Types, and Examples (investopedia.com)

Cash Flow Statement: How to Read and Understand It (investopedia.com)