[Jul-2026] Valid Way To Pass CIPS Exam Dumps with L4M4 Exam Study Guide [Q136-Q150]

July 22, 2026July 22, 2026 examdumps[Jul-2026] Valid Way To Pass CIPS Exam Dumps with L4M4 Exam Study Guide [Q136-Q150] 0 Comment

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[Jul-2026] Valid Way To Pass CIPS Exam Dumps with L4M4 Exam Study Guide

All L4M4 Dumps and Ethical and Responsible Sourcing Training Courses Help candidates to study and pass the Exams hassle-free!

CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 2	Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Topic 3	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 4	Understand the key processes that can be applied to the analysis of potential external suppliers:

QUESTION 136
A buyer in the public sector has put an advert out asking for interested suppliers to express an interest in a potential tender activity to provide a facilities management contract to a hospital trust. The suppliers who have met that criteria are then sent a document detailing how they should submit their tender, how to price the opportunity, asksQuestionsrelating to how they will deliver the service and gives a deadline for bids to be submitted. Which document have the suppliers ben sent?

Request for Quotation

Invitation to Tender

Invitation to Quote

Request for Tender

This is an Invitation to Tender.
The only other real document listed in Request for Quotation. This is incorrect because the document asks questions relating to how they will deliver the service. This means price isn’t the only factor, which is the case for a RfQ.
Request for Tender and Invitation to Quote are not real things.

QUESTION 137
What type of ratio is used to measure a company’s ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

Earnings per share

Profitability ratio

Dividend per share

Liquidity ratio

Liquidity ratios assess a company’s capacity to meet its short-term obligations using its most liquid assets.
These ratios, such as the current ratio and quick ratio, provide insight into the financial health of a company by indicating whether it has sufficient resources to pay off its immediate liabilities without raising external capital.
Exact Extract from Study Guide:
“Liquidity ratios: # Typical ratios: current ratio, quick ratio, cash flow ratio, etc. # Formulae of those ratios # Implications of liquidity ratios

QUESTION 138
Which of the following would you use to work out a company’s gearing ratio? Select TWO.
0current liabilities

shareholder equity

long term debt

net profit

gross sales

Gearing measures how much of an organisation’s long-term funding is made up of long term debt and loans.
Therefore the correct answers are ‘shareholder equity’ and ‘long term debt’.
There are many question about financial ratios that can come up on the exam. If you’re unsure on them I suggest doing further reading outside of the study guide as this will help. I like this youtube video (I’m not associated with the makers of this video but think they’re really good at explaining things to beginners) Gearing Ratio explained (youtube.com)

QUESTION 139
A buyer for a large manufacturing organisation is assessing a sole-supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole-supplier proposal?

Yes. The buyer can negotiate on aspects such as after-sales service

Yes, but only if the buyer decides to re-start the tender opportunity

No, because a buyer has no leverage over a sole supplier

No. The buyer must make the decision based on the existing information

Where price leverage is limited, buyers should seek value-adds: extended warranties, service levels, training, spares, delivery schedules, sustainability commitments, or risk-sharing. This aligns with total value and ethical outcomes beyond headline price.
Reference: CIPS L4M4 Study Guide (v2): LO “Application” – value analysis/negotiation with limited competition; non-price value levers and responsible outcomes.

QUESTION 140
Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?

metals, energy, elements and agriculture

fruit, vegetables, meat and dairy

energy, agriculture, metals, livestock

chemicals, agriculture, metals and livestock

energy, agriculture, metals, livestock are the four trading categories on the stock exchange. Some-times there’s a 5th category added which is ‘environmental credits’. This is a fairly new thing and you don’t need to know anything about this for this exam.
Question no commodities will mainly centre around characteristics of commodities and factors that affect pricing.
Commodities are discussed much more in detail in L5M4. At level 4 you just need a basic overview.

QUESTION 141
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?

the requirement is complex

the suppliers are likely to be unqualified

interest in the tender opportunity is likely to be low

interest in the tender opportunity is likely to be high

you would use a restricted approach when interest is likely to be high. The buyer needs a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations.
For complex requirements you could use both an open or restrictive tender- the difference between the approaches is about how many bids you’re likely to get rather than the complexity of it.

QUESTION 142
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

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 143
Phishing is a type of fraud that is commonly associated with which industry?

Agriculture

Mining

Construction

Phishing is a type of fraud where IT users are sent a link (usually by email) which exposes them to activities of expert cybercriminals.

QUESTION 144
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

Primary data includes trade fairs and exhibits, and phone calls to current suppliers. The others are examples of secondary data.
Remember primary= you do it yourself, Secondary = someone else did it.

QUESTION 145
What would an EBITDA ratio show you?

how profitable a business is

how solvent a business is

how much of a business’s funding is made up of long term debt

how effectively a business uses its assets to generate sales

EBITDA stands for ‘earnings before interest, tax, depreciation and amortization’. This is a profitability ratio and would show how profitable a business is.
EBITDA: Definition, Calculation Formulas, History, and Criticisms (investopedia.com)

QUESTION 146
When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit. Which of the following could these be? Select TWO

The organisation is new

The organisation has no loans or credit cards

The organisation has lots of fixed assets

The organisation does not employ many people

New organisations or those with no loans/ credit cards may have low credit scores. This is simply because they do not have enough financial history to make their scores good. That means banks au-tomatically class them as higher risk, because they simply don’t know that they’re trustworthy yet.

QUESTION 147
What type of relationship should a buyer seek when making strategic sourcing for their business?

transactional

collaborative

arms-length

partnership

The buyer should seek a ‘collaborative’ relationship. Transactional and arms-length relationships are more suited to tactical sourcing. Partnerships are reserved for joint-ventures.

QUESTION 148
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

Financial stability is a critical risk factor in high-value contracts. If a supplier collapses financially during contract performance, the buying organisation faces supply disruption, increased costs, and reputational risk.
Financial assessments help identify vulnerabilities such as high debt, poor liquidity, or over-reliance on limited customers. While profitability, credit scores, and broader capability assessments are useful, the most pressing concern is ensuring continuity of supply. Ethical and responsible sourcing requires buyers to consider the long-term viability of suppliers, not just short-term savings. This aligns with responsible practice, protecting stakeholders, end customers, and the organisation’s own obligations.
Reference: CIPS L4M4 Study Guide (v2), LO: “Implications” – supplier financial health, continuity of supply.

QUESTION 149
In which type of sourcing arrangement would the development of astrategic alliancebe the most appropriate?

Multiple sourcing

Single sourcing

Internal sourcing

Competitive sourcing

Astrategic allianceis most appropriate in asingle sourcingarrangement where the buyer relies on one supplier for a significant proportion of supply. Single sourcing encourages long-term collaboration, trust, joint investment, innovation, and shared risk management. Strategic alliances are not suitable for competitive or multiple sourcing, where maintaining competition and switching flexibility is the priority. Internal sourcing does not involve an external supplier relationship. Ethical and responsible sourcing promotes strategic alliances where long-term value, sustainability, quality improvement, and supply continuity are critical to organisational success.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) – sourcing strategies; single sourcing and supplier relationships.

QUESTION 150
Balance sheet (Statement of Financial Performance) ratios measure the liquidity and solvency of a business.
One of the liquidity ratios is called the ‘current ratio’. The formula for current ratio uses which of the following pieces of information from the balance sheet?
Select TWO that apply.

Total current assets

Current equity capital

Total sales income

Current cost of goods sold

Total current liabilities

Thecurrent ratiomeasures a supplier’s ability to meet short-term financial obligations and is calculated as total current assets divided by total current liabilities. Current assets include cash, receivables, and inventory, while current liabilities include overdrafts, trade payables, and short-term debt. Equity capital relates to ownership, not liquidity, and sales income and cost of goods sold appear in the income statement, not the balance sheet. Ethical and responsible sourcing requires procurement professionals to assess supplier liquidity to reduce the risk of supply disruption caused by cash-flow problems.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) – financial ratios; liquidity assessment.

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