100% Free CIPS L4M4 Practice Test Questions

Question 1

When would a procurement professional use the Pareto principle?

A : when considering changing a supplier

B : when conducting a value analysis

C : when looking at whole-life-cycle costs

D : when appraising a supplier

Answer: A

Question 2

Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.

A : The company's criteria for make or buy decisions

B : The financial stability of the company

C : Procedures on intra-company trading

D : The company’s employee working conditions

E : The company's code of ethics

F : The company's policy on carbon emissions

Answer: D,E,F

Question 3

The bill of lading is one of the main documents associated with sea freight within international sourcing. Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

A : It provides evidence of the contract of carriage for the goods

B : It provides evidence of the title of ownership of the goods

C : It provides evidence of the country of origin of the goods

D : It provides evidence that the goods are fully insured in transit

E : It provides evidence guaranteeing the use of Incoterms on the goods

Answer: A,B

Question 4

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

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

B : to understand if their prices reflect market value

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

D : to find out if the supplier has any unethical business practices