L4M4 Exam Dumps - Reliable Way to Pass and Get Certified

L4M4 Exam Dumps – Reliable Way to Pass and Get Certified

Category:

Comments:

0 Comments

Post Date:

May 8, 2024

If you are looking for a reliable and comprehensive way to prepare for your L4M4 certification exam, look no further than L4M4 exam questions. These L4M4 exam dumps questions are designed to help you assess your knowledge, identify your strengths and weaknesses, and improve your chances of passing the exam on the first try. These L4M4 dumps questions cover all the topics and concepts that are essential for the L4M4 exam, so you can be sure that you are fully prepared. Test CIPS L4M4 free dumps below.

Page 1 of 9

1. What might a buyer encounter if the supplier's government has introduced a protectionist measure?

Inward processing relief

Arbitration

Import duties

Carnets

2. Commodities can be traded on a stock exchange and are generally divided into one of four categories.

Which of the following is not one of these four categories?

energy

livestock

metals

plastics

3. Which of the following should be considered when calculating ratios relating to a supplier's liquidity?

inventory

reserves

receivables

profit

4. Which of the following would be a valid reason to make a product inhouse, rather than buy it from a supplier?

improved quality control

less inventory

killset of supplier is higher

threat of substitutions

5. Jack Green is planning to use competitive tendering to source a new component for a new product that the customer research department has been developing for the domestic market. Jack is intending to use an open tender process.

Which of the following aspects must Jack consider if an open tender procedure is to be used?

The bidders must be pre-qualified prior to invitation to tender

There must be an adequate number of suppliers in the market

The tender will only be advertised in marketing journals

The price will be the only criterion for supplier selection

6. A buyer has been working with their business managers on a tender. The buyer is now assessing the tender proposals from the external market.

Is it good practice for the procurement buyer to make sourcing recommendations?

Yes, the procurement buyer should assess and take all decisions to award the tender independently of the business managers to avoid conflict of interest

No, it is a lengthy, costly, and unnecessary step for the procurement buyer to engage business managers

No, the buyer's recommendations are not relevant to the final sourcing decision, which must be taken by the business managers

Yes, the procurement buyer can advise on the competitive proposal but should engage with the business managers about the decision to award the tender

7. The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:

Current Assets: Stock $200; Debtors $60; Cash $40; Total $300

Short Term Liabilities: Bank overdraft $150

Which calculation will the procurement manager use to find out the current ratio?

(300 - 200) ÷ 150

300 ÷ 150

(300 - 200 - 150) × 100

(300 ÷ 150) × 100

8. Compared with single sourcing, what is a key advantage to dual or multiple sourcing? Select TWO

It is easy to drive down costs

There is a risk of failure to supply

Economies of scale

Supplier Loyalty

Low risk of failure to supply

9. 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?

use the Return on Investment Ratio

do an Acid Test

work out the supplier's EBITDA

work out the supplier's gearing ratio

10. A Request for Quotation asks a supplier to submit a price only, with no other details provided. Is this TRUE?

Yes- price is the only factor considered

Yes- this ensures the cheapest supplier is appointed

No - specifications, technical details and quantities can also be provided

No - quotations provide samples too

Page 2 of 9

11. 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 selecting the most appropriate supplier.

How should Eamon appraise the bids?

evaluate the bids himself as this is a complex requirement

evaluate the bids himself as this is a strategic purchase

organise a cross-functional team to assess the bids as people from other departments may have important information and experience of yoyos

organise a cross-functional team of procurement personnel as they will have experience in assessing price and quality of bids

12. Zeb is a Procurement Manager at Zig Zag Zips manufacturing. The organisation has a complex supply chain and works with 46 different suppliers, many of these international.

Which of the following would be the most useful for Zeb to address issues of Modern Slavery?

carry out regular due diligence checks on the supply base

ensure all 46 suppliers publish an Anti Slavery Statement in line with the Modern Slavery Act

work with less suppliers to reduce the risk of slavery entering the supply chain

ask all suppliers to get Fair Trade accredited

13. Achieving the 'five rights of procurement' is one of the key objectives of procurement managers.

Which of the following are not considered one of the 5 rights? Select TWO.

time

ethics

environment

quantity

quality

14. Incoterms are divided into four main groups to follow the movement of goods covering the exporter’s premises, export and import points, and cost and risk.

Which letters represent the four groups of Incoterms?

E, F, C, and D

E, F, B, and C

B, C, F, and G

A, B, C, and D

15. Which of the following payment mechanisms is most beneficial to the buyer?

open/ credit account

term / time draft

sight draft

cash in advance

16. Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender.

What is the benefit of incorporating standards in a specification?

Standards provide clear guidelines and remove ambiguity

Standards will mirror the buyer’s requirements entirely

Standards will ensure low pricing in tender responses

Standards will ensure suppliers meet all buyer’s requirements

17. Loss of private information

1 and 4 only

2 and 3 only

3 and 4 only

1 and 2 only

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

balance sheet

ESG policy

profit and loss account

cash flow statement

19. A Bill of Exchange is an important document used when importing goods into a country from abroad.

What is the purpose of this document?

details who is responsible for the insurance of the goods during transit

specifies the country of origin of the goods

explains which tariffs apply to the goods

details payment instructions

20. Past performance

1, 2 and 4 only

1, 2 and 3 only

2, 3 and 4 only

3 and 4 only

Page 3 of 9

21. What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

Remove all business and inform press organisations to escalate to government authorities

Allow the supplier to complete current orders while pursuing alternatives

Immediately raise the issue with the supplier and jointly develop a timely action plan before a repeat audit

Immediately halt all orders and switch to an alternative source of supply

22. The procurement manager has supplier data: Current Assets = $300 (Stock $200, Debtors $60, Cash $40). Short-Term Liabilities = $150 (Bank overdraft).

Which calculation gives the current ratio?

300 C 200 ÷ 150

300 ÷ 150

300 C 200 ÷ 150 × 100

300 C 150 × 100

23. A procurement manager has a new contract to award. There are twelve suppliers in the market.

Which of the following is a benefit of using a full competitive tendering process?

It is a quick and informal process

All suppliers will know how much the others have bid

All bidders will be treated equally

Only the procurement manager can decide who wins

24. Evaluate the market dynamics

1 and 2 only

2 and 3 only

1 and 3 only

3 and 4 only

25. Rules regulating the type of goods and the volume that can be imported into a country or trade block are commonly known as what?

duties

profits

tariffs

laws

26. The supplier is personally known by the Operations Director

1 and 3

1 and 4

2 and 3

3 and 4

27. Sourcing is part of the procurement cycle and is likely to be used in conjunction with which activities? (Select TWO)

Creating call-off orders

Raising purchase requisitions

Uploading goods received notes

Requesting quotations

Identifying potential suppliers

28. Commodity

1 and 2 only

2 and 4 only

1 and 3 only

2 and 3 only

29. A buyer is considering trading with a new supplier who is based in a country they have not traded with before. The buyer needs to understand the anti-bribery risks in the country.

Which of the following sources of information would be useful in this regard? Select TWO that apply.

United Nations Sustainable Development Goals (UNSDGs)

International Court of Arbitration (ICC)

Transparency International (TI)

Local Anti-Corruption Legislation

International Standards Organisation (ISO)

30. Faisal is a medical equipment maintenance services procurement specialist within a local hospital. Faisal is responsible for ensuring contracts are in place that will ensure operational continuity of high-value pieces such as radiology equipment. When carrying out tender opportunities for these services, Faisal will specify, as an essential requirement, that certain standards are adhered to.

Which of the following is a benefit of incorporating standards as a requirement within a specification?

Standards provide clear guidelines and remove the risk of ambiguity

Standards will mirror the buyer's requirements in its entirety

Standards will ensure suppliers meet all the buyer's requirements

Standards will ensure low pricing is submitted in the tender response

Page 4 of 9

31. Which of the following factors are typically considered when assessing a supplier's financial capacity?

The supplier’s profitability and asset levels

The price quoted in the request for quotation

The supplier’s costing methods and markup percentage

The supplier’s compliance with regulations for minimum wages

32. A prequalification questionnaire can allow a buyer to determine whether or not a potential supplier shares the same ethical values at an early stage of a procurement process.

Obtaining confirmation that a supplier has not previously been convicted of breaches of modern slavery legislation belongs to which form of evaluation criteria?

Environmental

Social

Economic

Quality

33. Scott is a procurement manager who is evaluating a bid from a supplier to provide a new IT system to his office that will be used by 100 employees. He is considering the total life-cycle costs.

Which of the following should Scott consider? Select THREE

Added value

Maintenance

Acquisition Costs

Training

Functional Fit

34. Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers.

Which of the following is Luke now likely to know about the marketplace? Select THREE

acceptable lead times

amount of product competition

expected changes in the marketplace

exact costs of the item he's procuring

samples of the product

35. Economic indices track a market's stability and health. One of these indices is the Consumer Price Index (CPI).

Which of the following are aspects of the Consumer Price Index? Select TWO that apply.

The CPI tracks the performance of selected companies in different stock markets

The CPI helps in calculating the exchange rates and tariffs used in setting prices for imports

The CPI tracks variations in prices in a particular geographical location

The CPI tracks the weighted average prices of selected commodities within the country

The CPI shows that prices are influenced by tax thresholds rates rather than inflation rates

36. What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?

Cash flow statement (statement of cash flow) and balance sheet (statement of financial position)

Balance sheet (statement of financial position) and profit and loss account (statement of financial performance)

Profit and loss account (statement of financial performance) and chairman’s statement (in the annual report)

Cash flow statement (statement of cash flow) and profit and loss statement (statement of financial performance)

37. 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?

compliance with Codes of Conduct from professional bodies is mandatory

ethical behaviour is impossible to determine as issues such as Modern Slavery often go undetected

the buyer should ask suppliers to be accredited to ISO9001a supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs

38. Which legislation relates specifically to the ethical treatment of workers within the supply chain?

Bribery Act 2010

Modern Slavery Act 2015

Equal Pay Act 1970

Health and Safety at Work Act 1974

39. Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

A supplier who is highly profitable will be charging prices higher than the average market rate

If a supplier has a high credit score this means it pays its own suppliers late which could result in stock outs

Financial assessments provide a holistic view of a company’s capability including quality and delivery performance

The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply

40. Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25.

is this the correct thing to do?

yes- point systems can be weighted any way a buyer choses so long as this is explained in the ITT

yes- 25 is the correct weighting for quality question

no- the weighting should total 10

no- the weighting should total 100

Page 5 of 9

41. A buyer of bakery products sees wheat shortages due to poor harvests but demand remains high.

How does this affect negotiation?

Buyer is in a strong position to reduce prices

Buyer will find it difficult to negotiate lower prices

Prices will not be affected by shortages as demand is high

Bakery produce will be lower priced as less wheat is available

42. Why do tenders often have longer timescales in the public sector when compared with those of the private sector?

There is a more detailed debrief requirement in the public sector

There is wider stakeholder involvement in the public sector

All public sector purchases are mandated to use a tendering procedure

Regulation of the public sector usually dictates minimum timescales

43. Which of the following should form part of the initial evaluation process for non-domestic vendor proposals?

Contract management

Incoterm classifications

Internal benchmarking

Supplier development

44. For complex and high value tenders, which document is the most appropriate to send to those suppliers who have already been appraised and deemed suitable?

PQQ

ITT

RFQ

RFT

45. 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.

To gain tactical sourcing

To gain green procurement

To gain value for money

To avoid complex bids

To gain insights from the market

46. Which of the following would you expect to find in an Invitation to Tender? Select THREE

awarding body

deadline(Correct)

pricing schedule

qualifications required

risk assessments

47. If a company is concerned with ethical sourcing and has concerns about issues such as corruption and modern day slavery within the supply chain, what course of action should they take?

Only work with known suppliers

Complete Due-Diligence on all new suppliers

Only work with suppliers who have a published Anti-Slavery policy

Complete formal tenders to find the best suppliers

48. Past performance

1, 2, and 4 only

1, 2, and 3 only

2, 3, and 4 only

1, 3, and 4 only

49. In which instance would multiple sourcing be the most applicable approach?

Sourcing for the provision of a service, where close relationship management is required

Sourcing a specialised, unique component where the supplier's knowledge is key

Sourcing for high-cost, strategically important components

Sourcing for components required at short notice

50. Which of the following are primary sources of data? Select TWO.

market reasearch commissioned by a rival company

economic indices such as PPI or CPI

published price lists

trade fairs and exibits

phone calls with current suppliers

Page 6 of 9

51. When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?

yes- because a low rating would have a negative impact on the company's reputation

yes- because a low rating would indicate the supplier is financially unstable

no- because a low rating would not affect the quality of the products supplied

no- because a low credit rating would have a negative impact on the supply chain

52. What are the key benefits of implementing sustainable sourcing practices? (Select two)

Lower procurement costs

Reduced environmental impact

Improved supplier loyalty

Increased market share

53. Review the non-disclosure agreement for their contract

1 and 3 only

1 and 4 only

2 and 3 only

2 and 4 only

54. Negotiation styles

1 and 2 only

2 and 3 only

3 and 4 only

1 and 4 only

55. Pre-qualification of suppliers is used to determine if the suppliers meet the basic requirements of the buying organisation.

Which of the following is assessed at the pre-qualification stage?

capacity, capability and pricing structure

pricing structure, ethics and financial stability

financial stability, capacity and capability

capability, culture and pricing schedules

56. Ramesh is an IT category manager within the UK’s NHS and is responsible for the procurement of a new high-value network system. Ramesh has concluded that the use of a restricted tender is the most appropriate.

Which of the following statements is true for a restricted tender process?

The contract will be awarded strictly on pricing criteria

Suppliers responding to the tender are pre-qualified

It is only relevant when there are few suppliers in the market

Direct negotiations occur prior to suppliers submitting their offer

57. Which of the following is a UK legislation concerning product safety?

Enterprise Act 2002

Consumer Rights Act 2015

GDPR 2018

Competition Act 1998

58. 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?

develop strategy

supplier selection

contract award

asset management

59. Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable.

Which of the following should Dylan look for in terms of quality management when appraising the suppliers?

ISO9001

Carter's 10 Cs

ESG

conformance specification

60. Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms.

Is this a valid approach?

No, suppliers cannot be legally responsible for ESG compliance; this should be the buying organization

Yes, this helps to demonstrate the importance of compliance to ESG

No, ESG is not within the scope of a contractual document and should always be treated informally

Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously

Page 7 of 9

61. The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco-terms.

What is the purpose of these rules?

to state which products can be exported from which countries

to ensure buyers and suppliers pay the correct level of tax on imported and exported goods

to describe the point at which an item is considered delivered

to provide internationally recognized product descriptions

62. Incoterms are designed to be understood and interpreted on a worldwide basis.

What is the interpretation for FOB (Free on Board)?

The buyer takes responsibility for the goods after they are loaded on the ship, plus all subsequent costs, including freight charges

The buyer takes responsibility for the goods after they are loaded on the ship, plus subsequent costs, excluding freight charges

The buyer takes responsibility for taking the goods from the departure quayside to the ship, plus all subsequent costs

The buyer takes responsibility for transferring the goods from the seller's premises to the ship, plus all subsequent costs

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

all laws within the country they work in

all international procurement legislation

all laws published by international organisations such as ILO

all laws within countries they have business and contracts in

64. When assessing the financial performance of a potential supplier, it is important to understand how much gross profit they are making.

The gross profit margin ratio uses which of the following pieces of information from the profit and loss (statement of financial performance)? Select TWO that apply.

Cost of goods sold

Value of equity capital

Income from sales

Current liabilities

Total current assets

65. 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?

Gearing ratio

Acid test

Profit and loss account

Annual turnover

66. Why do tenders often have longer timescales in the public sector compared with private sector?

All public sector purchases must use a tendering procedure

There is wider stakeholder involvement in the public sector

There is a more detailed debrief requirement in the public sector

Regulation of the public sector dictates minimum timescales

67. Why would you use a credit score to appraise a supplier?

to understand the level of risk the supplier poses to your organisation

to understand if their prices reflect market value

to find out how much money the supplier has in the bank

to find out if the supplier has any unethical business practices

68. When might a company send a Request for Information (RFI) to a supplier instead of a Request for

Quotation (RFQ)? Select TWO that apply:

To determine whether the supplier is able to fulfill a purchase order that has already been placed

To obtain indicative prices that could be offered for a range of required products

To ask for the details of the product or the range of services that the supplier has to offer

To establish the details of environmental and quality certificates that the supplier may have

To negotiate the payment terms detailed in the terms and conditions of sale

69. What factors should be considered when assessing the risk associated with a supplier's country of origin? (Select three)

Economic stability

Distance to the warehouse

Political situation

Cultural differences

Export restrictions

70. Supplier financial position

1 and 3 only

1 and 4 only

2 and 4 only

2 and 3 only

Page 8 of 9

71. Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?

data protection

product safety standards

marketplace competition

ethical practice

72. Incoterms are divided into four main groups to follow movement of goods covering exporter’s premises, export/import points, and cost/risk.

Which letters represent the groups?

E, F, C, D

E, F, B, C

B, C, F, C

A, B, C, D

73. In which instance would multiple sourcing be the most applicable approach?

Sourcing for the provision of a service, where close relationship management is required

Sourcing a specialised, unique component where the supplier’s knowledge is key

Sourcing for high-cost, strategically important components

Sourcing for components required at short notice

74. Which of the following financial ratios would indicate a supplier's potential exposure risk to a steeprise in inflation?

acid test

current ratio

gross profit margin

gearing ratio

75. Ji Yuan is a procurement manager who is looking for a new supplier to complete reactive maintenance activities throughout his property portfolio. The reactive maintenance will include an array of plumbing tasks as well as fixing electrical items. Suppliers therefore need to be extremely skilled and knowledgeable about a variety of tasks. Ji Yuan has done some initial research and doesn't believe that there are many suppliers who can complete this type of contract.

What type of tender should he use?

negotiated

restricted

open

competitive dialogue

76. Which of the following is not a Human Rights as protected by the UN Declaration on Human Rights?

freedom of Belief and to change beliefs

the right to be treated equally

the right to free speech

the right to change nationality

77. 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?

people, profit, planet

economic, ethical and environmental

efficiency, effectiveness, impact

fraud, bribery and corruption

78. A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally.

Which of the following factors is likely to justify the decision to make the requirements internally?

The other suppliers are using older technology

The availability of in-house competencies and capacity to carry out the production

External suppliers are likely to be overcharging

External sourcing involves cumbersome tendering procedures

79. To identify potential risks within the supply chain

1 and 2 only

2 and 3 only

3 and 4 only

1 and 4 only

80. Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector.

Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?

FAS

EXW

DPU

DDP

Page 9 of 9

81. Which of the following is a measure of liquidity?

Gearing

Return on Investment

Current Ratio

Total Asset Turnover

82. 1.What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?

Not working with suppliers who you have heard have a reputation for bribery and corruption

Requesting your supplier’s ethical policies on an annual basis

Having full anti-bribery training, policies, and procedures in place

Asking all suppliers to read your organisation’s policy on anti-bribery and corruption

83. 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...

Cash receipts from customers

Capital employed, operating expenses, and net profit

Liquidity ratios, return on capital employed, and gearing

Short-term liabilities (unpaid taxes and bank overdraft)

84. Which remedial actions may be undertaken by a purchasing organisation following a supplier audit? (Select TWO)

Running supplier development programmes

Employing the supplier’s staff for job training

Daily brainstorming meetings with the supplier

Violating the terms of the supplier contract

Defining corrective actions for the supplier

85. A procurement manager suggests implementing an ISO environmental standard to improve procurement practices. Some colleagues worry about complexity and resistance.

Should the company proceed?

No, because ISO standards are only relevant to large organisations

No, ISO standards are too complex for staff and suppliers

Yes, implementation would guarantee compliance with environmental laws

Yes, as it would align with and help to achieve sustainability goals

TAGS:

L4M4, L4M4 exam dumps

Notify of

Label

Name*

Email*

Website

Label

Name*

Email*

Website

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments

Get L4M4 Dumps Full Version

Q&As: 288
Versions: PDF and Software Download Now

About Dumpsinfo

Dumpsinfo is a good platform providing the latest exam information and dumps questions for all IT certification exams. You can study all the latest exam dumps questions online.

[email protected]

Mon - Sat 9:00am - 6:00pm

L4M4 Exam Dumps – Reliable Way to Pass and Get Certified

Related

Posts

Improve Your Knowledge with L5M6 Exam Dumps

Study Online L3M6 Exam Dumps to Pass

Online L6M1 Exam Dumps Help You Build Confidence

Get Certified Easily with Online L5M4 Dumps

About Us

EMAIL

Services

Opening Hours