L4M4 Exam Dumps – Reliable Way to Pass and Get Certified

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.

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1. In order to assess whether a company is able to meet its current liabilities, which financial ratio should you use?

Return on Equity

Acid Test

Gearing Ratio

Gross Profit Margin

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2. Ramesh is a procurement manager who is looking at his supplier base. He is pursuing a sourcing

strategy with the aim of enabling logistical cost reductions. He has made the decision to scale-down

his supplier base and purchase from one supplier.

Which type of sourcing arrangement has Ramesh began?

dual

multiple

single

sole

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3. 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.

importation rules and tariffs

exportation rules and tariffs

payments by electronic bank transfer

lower operating costs

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4. Which of the following would you use to work out a company's gearing ratio? Select TWO.

0current liabilities

net profit

shareholder equity

long term debt

gross sales

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5. Which of the following items would you expect to find on a balance sheet? Select THREE

current assets

current liabilities

net product sales

stockholders' equity

gross product sales

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6. Bob works in the procurement department of a construction firm. He has been asked to procure an item for a short-term project which is considered low risk.

What type of sourcing will he be completing?

tactical

strategic

outsourcing

insourcing

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7. Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

location

distribution

reputation

quality

price

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8. 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

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9. Which of the following are examples of secondary data? Select TWO

economic indices

trade fairs and exhibitions

networking

commissioned market research

comparison websites

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10. The gross profit of a company can be calculated by using a simple formula.

What is this?

total revenue - cost of sales

assets - liabilities

cost of sales - fixed assets

debt owed - total sales

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11. 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

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12. 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

innovation

on time in full deliveries

bulk discount

sustainability

cost plus pricing

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13. It is important that buyers take an approach that is reasonable and fair when selecting suppliers to work with.

Which of the following is a voluntary document which can help procurement professionals treat suppliers respectfully?

EU Procurement Directive 2014

CIPS Code of Conduct

ISO 9001

ILO is an organization

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14. A procurement manager who works in the public sector has received 8 submissions to a tender op-port unity that was advertised on OJEU. The average price submission for the contract was £1m but one supplier has submitted a price of £200,000, which the procurement manager has identified as being 'an abnormally low tender'.

What should be the procurement manager's course of action?

automatically dismiss the low bid

award the contract to the low bid as this represents better value for money

investigate the low bid

award the bid a 0 for price

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15. 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

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16. Elaine works for a British manufacturer of confectionary (sweets/ candy) items. One of the key ingredients is cocoa powder, which cannot be grown in the UK. Elaine therefore needs to look abroad for suppliers.

Which of the following are risks that Elaine needs to consider when sourcing internationally? Select THREE

currency exchange fluctuations

shortened lead times

ethical behavior

export tariffs

cultural differences

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17. 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?

it allows transparency

it is time-consuming to create

it is easy to manipulate

it is hard to be objective

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18. When using a 'credit account' payment mechanism, when does a supplier receive payment for the goods?

after delivery

in advance of delivery

when they receive the PO

before the order is placed

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19. Sourcing products internationally involves extra considerations when looking at the price of the item.

Which of the following are additional price considerations for international sourcing? Select TWO

exchange rate

total life cycle costs

tariffs

batch quantities

tax

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20. Which of the following is an example of intracompany trading? Select TWO

a manufacturer in the UK buys raw copper from a supplier in Chile

two companies owned by the same entity conduct business

two companies join together to create a new product

two departments within the same company collaborate on a project

cleverness

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21. Which of the following payment mechanisms is most beneficial to the supplier?

open account

cash in advance

sight draft

letter of credit

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22. When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?

low value items, transactional suppliers

low value items, strategic suppliers

high value items, strategic suppliers

high value items, transactional suppliers

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

open/ credit account

term / time draft

sight draft

cash in advance

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24. 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

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

inventory

reserves

receivables

profit

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26. For what type of purchase would you use a Futures Exchange?

Tail Spend

Capital Expenditure

Commodity

High value, high risk

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

Enterprise Act 2002

Consumer Rights Act 2015

GDPR 2018

Competition Act 1998

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28. Philip is a procurement manager at XYZ Company which imports raw materials from abroad. Sup-pliers provide quotes to Philip in their local currency.

Is this the best way to reduce the risk to XYZ Company of currency fluctuations?

yes- this means the price won't go up or down

yes- this puts the risk on the supplier

no- quoting in the supplier's currency increases the risk for the buyer

no- quoting in the supplier's currency does not affect the risk to the buying organisation

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29. What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

they will not be able to make that time and date

they will not perform regular duties that day

they will not achieve KPIs

they may coach staff in what to say

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30. 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 ISO9001 a supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs

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31. Which of the following can be interpreted as a normal business practice by some cultures but a form of bribery by others?

phishing

verbal contracts

golden handshake

facilitation payment

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32. 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

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33. Which of the following areas of legislative and regulatory requirements prevent the deliberate limiting of supply and the formation of cartels?

data protection

product safety standards

marketplace competition

ethical practice

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34. What type of relationship should a buyer seek when making strategic sourcing for their business?

transactional

collaborative

arms-length

partnership

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35. Which of the following is considered as part of ESG?

bribery, corruption and the environment

market conditions and product lifecycle

liquidity, gearing and profitability

economic and social governance

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36. 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

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