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CIPS L4M4 Exam Dumps

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L4M4 Pack
Vendor: CIPS
Exam Code: L4M4
Exam Name: Ethical and Responsible Sourcing
Exam Questions: 302
Last Updated: August 21, 2026
Related Certifications: Level 4 Diploma in Procurement and Supply
Exam Tags: Intermediate Procurement and Supply Professionals
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Free CIPS L4M4 Exam Actual Questions

Question No. 1

A company has a requirement for an item that has been identified as strategic on the positioning model. The company needs to invite competitive tenders and make sure the selected supplier of this item is in a good financial position. What should the company ask the suppliers to send to show that their current assets cover their current liabilities?

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Correct Answer: B

The acid test, also known as the quick ratio, measures a company's ability to cover its current liabilities with its most liquid assets, excluding inventory. It is a stringent indicator of short-term financial health. By requesting this ratio, the company can assess whether a potential supplier has sufficient liquidity to meet its obligations, which is crucial when procuring strategic items.


CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3: Financial Appraisal of Suppliers

Question No. 2

According to the CIPS code of conduct, which laws should a procurement professional adhere to?

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Correct Answer: D

The CIPS Code of Conduct says to adhere to all laws of countries in which I practice. So if you're in the UK and procure stuff from China, you need to abide by both UK and Chinese laws, not just UK laws.

There's no international procurement laws- these are all different for different countries.

ILO doesn't publish laws.


Question No. 3

A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements. The buyer will make the contract award decision based on which of the following?

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Correct Answer: A

Weighted criteria allow the buyer to evaluate multiple factors, not just price, to make a fair and balanced decision. This approach ensures responsible sourcing by considering quality, sustainability, and other relevant factors alongside cost, which aligns with public procurement ethics and standards.


Question No. 4

Sourcing aims to achieve the best value for money by taking into account several factors. Freddy issourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?

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Correct Answer: A

'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.


Question No. 5

Procurement professionals should never appoint any suppliers that have a low credit rating. Is this statement TRUE?

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Correct Answer: B

A credit rating is one of many tools used to assess a supplier's financial health. Responsible sourcing requires a comprehensive assessment of suppliers, considering multiple factors, to ensure a balanced and ethical approach to supplier selection.


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