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Latest L4M4 Exam Practice Questions

The practice questions for L4M4 exam was last updated on 2025-10-03 .

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Question#1

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

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

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

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

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

Explanation:
The correct answer is 'yes- because a low credit rating would indicate the supplier is financially un-stable'.
The two options beginning with no should automatically be discounted. The other option is incorrect because credit ratings are private and would therefore not affect reputation.

Question#2

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?

A. EU Procurement Directive 2014

B. CIPS Code of Conduct

C. ISO 9001

D. ILO is an organization

Explanation:
The correct answer is the CIPS Code of Conduct. This is a voluntary document about doing 'good procurement' i.e. treating suppliers with respect.
EU Procurement Directive is legislation, so isn't voluntary ISO9001 is about quality management ILO is an organisation rather than a document

Question#3

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?

A. tactical

B. strategic

C. outsourcing

D. insourcing

Explanation:
tactical is the correct answer; items that are short-term or low value are considered tactical.
Strategic sourcing is long term and high value.
Outsourcing is moving a key business function to an external company.
Insourcing is bringing a previously outsourced part of the company back in-house.

Question#4

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?

A. negotiated

B. restricted

C. open

D. competitive dialogue

Explanation:
Open tenders should be used when the buyer expects there to be little interest / fewer bids. The opportunity is advertised widely allowing any supplier that wishes to submit a bid the opportunity.
The other options limit the number of suppliers and Ji Yuan doesn't want to do that, because he risks getting no interest and no supplier.
P.23

Question#5

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

A. It is easy to drive down costs

B. There is a risk of failure to supply

C. Economies of scale

D. Supplier Loyalty

E. Low risk of failure to supply

Explanation:
The correct answers are 'it is easy to drive down costs' (as you can pit the suppliers against each other) and 'low risk of failure to supply' (if one supplier can't provide what you need, the other supplier might be able to).
Economies of scale and supplier loyalty are advantages of single-sourcing.
There is a risk of failure to supply is a risk associated with single sourcing.
There's a useful table of advantages and disadvantages of single / multi sourcing on p.22. Types of sourcing is a key topic for the exam.

Exam Code: L4M4Q & A: 288 Q&AsUpdated: 2025-10-03

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