Free L4M4 Practice Test Questions and Answers (2026) | Cert Empire Practice Questions

ISO isn't an indices- it stands for 'International Labour Association'.

The others are all indices that measure economic data; consumer price index, producer price index

and gross domestic product.

GDP = gross domestic product = "the monetary value of goods and services manufactured or sup-

plied in a financial period". People use it to say whether a country's economy is strong or weak.

Stock markets look at the value of public limited companies within a country.

Commodity indices look at the value of commodities such as steel, oil and wheat at a point in time

Average changes in price over a year can be measured by CPI or PPI

The best way to deal with potential Conflicts of Interest is to openly declare these. Just because you

have a relationship with someone doesn't mean this is going to be an issue or lead to fraud, but it is a

good idea to keep a written record of these.

It wouldn't be a risk register, because how can you rate someone's risk of doing something dodgy?

Risk registers are for objective risks such as Health and Safety.

Intracompany trading is when two departments in the same company do trading. AND when two companies owned by the same parent company do trading. INTRA means 'within' - so it's doing business with yourself.

Raja should send out a RFI- request for information; this will allow him to gain feedback from the

marketplace prior to tender.

Speaking only with current suppliers will not provide all the information Raja requires.

He should not send out a request for quotation since he is still conducting market research

An open competition would be how he can procure, after he's completed his research

The correct answer is 'the supplier is able to work at the same technical level as the buyer'. It's about

being able to integrate the businesses together in terms of IT systems and such like.

ISO9001 is Quality Management so is therefore the correct answer. The other options can be used to

appraise suppliers but do not link directly or fully to Quality Management.

The Triple Bottom Line framework evaluates an organisation's impact on social, environmental, and

economic factors. Financial and environmental performance are critical components, along with

social metrics, aligning with responsible sourcing goals to promote sustainability and ethical

practices.

Incoterms describe the point at which an item is considered 'delivered' and explains who has the risk

of what during the transport of the goods.

gross profit = total revenue - cost of sales.

Learn all you can about financial ratios and financial statements for the exam- it's a very common

topic

EXW- exworks is a suitable incoterm for transporting goods both by rail and boat. It can be used

regardless of the mode of transport. The other three are for transport over water. P. 143 Shipping

Incoterms: the Complete Guide - Guided Imports

Some students report a lot of questions on Incoterms in the exam, some say they only had 1. Best bet

is to learn them if you possibly can.

Requesting suppliers to quote in GBP Sterling removes exchange rate risk by fixing the cost in the

buyer’s local currency. This strategy aligns with responsible sourcing practices by providing cost

stability and protecting the procurement budget from currency fluctuations.

The correct answer is 'no- quoting in the supplier's currency increases the risk for the buyer'. This

questions comes up in a variety of formats in the exam. Remember; if the price is in your own

currency (most examples in the exam are given in £) there is less risk than if the prices are quoted in

a foreign currency. This is because exchange rates fluctuate; if the price is in £ you always know what

you're paying, if it's in another currency the price can change daily depending on if the exchange rate

compared to £ has gone up or down.

Robert should look at the supplier's ESG policy. This stands for Environmental Social Governance. So

covers both his requirements for community (social) and environmental factors.

ISO 9001 is about Quality Management and ISO27000 about Information Security so these are in-

correct answers. An Anti-Slavery Policy would not discuss the environment.

Most Economically Advantageous Tender (MEAT) is the Public Sector's go to evaluation criteria.

NOTE that this is changing from October 2023. Public Sector Procurement is currently based on

legislation called PCR 2015 which itself is based on EU Procurement Directives. Now the UK has

officially Brexited, we're making our own laws and the new Procurement Bill will be coming into

effect in November 2024. One of the major changes is that MEAT is changing to MAT (most ad-

vantageous tender - without the economical bit).

If you're sitting this exam until July 2024- you're fine- learn what the study guide says. If you're taking

the exam from November 2024 I'm not sure what students are expected to do. The entire section on

public sector procurement is incorrect for you. My best guess is CIPS may remove questions this

section as the study guide will be wrong, but I really don't know how they plan to handle this.

The new Procurement Bill - MEAT to MAT - Hempsons - Hempsons

ABC should do a 'root cause analysis' to find out where the issue has come about, and why. From

there, once they know what the breach is and how serious it is, they can suggest corrective action.

They can't jump straight to terminating the contract or seeking damages as it's not the supplier itself

but rather the subcontractor. Also that would be really hasty considering we don't know what the

issue is and what the market conditions are like. That supplier may be the only one who can provide

the product. We also don't know if the supplier knows about the issue themselves.

In the sourcing process, obtaining necessary approvals (such as drawings for the invitation to tender)

is critical to ensure clarity and readiness before engaging with suppliers. Responsible sourcing

emphasizes structured preparation, ensuring compliance and accuracy in supplier expectations.

The Consumer Rights Act 2015 is about product safety and making sure products sold on the market

are fit for purpose. It gives buyers rights and protections. The Consumer Rights Act 2015 - Citizens

Advice

There's a long list of legislation on p.105. I wouldn't worry about memorizing them all but just have

an idea of what legislation relates to what area. E.g. GDPR is about Data Protection and the Com-

petitions Act is about Marketplace competition. Most of them are quite obvious from the name.

Carry out due diligence is the correct answer. The other answers are incorrect:

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

wrong because the question states that some suppliers are international. The legislation is UK,

meaning international suppliers don't have to do the statement. It also only applies to companies

with a turnover of £36m, and some of Zeb's suppliers may be smaller than this.

- work with less suppliers to reduce the risk of slavery entering the supply chain is a silly answer be-

cause Zeb probably needs all of his suppliers. There's probably a reason he uses that many.

- ask all suppliers to get Fair Trade accredited is also a silly answer. Fair Trade only exists in some

industries such as cocoa and bananas. Zig Zag Zips is in manufacturing so it's probably not going to be

able to fairtrade accredit some of the stuff it buys.

ISO 20400 is sustainable procurement.

14000 is environment

9001 is quality management

27001 is information security