Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. CIPS
  5. L4M4

CIPS L4M4 Exam
Ethical and Responsible Sourcing (Page 3 )

Updated On: 1-Feb-2026
Page 3 of 25
PDF with 180 Questions

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

  1. economic indices
  2. trade fairs and exhibitions
  3. networking
  4. commissioned market research
  5. comparison websites

Answer(s): A,E

Explanation:

economic indices and comparison websites are secondary sources of data. The other three are examples of primary sources of data.
Primary= you get the data yourself
Secondary = you find the data from somewhere else



Which of the following is not a indices that measures economic data?

  1. PPI
  2. CPI
  3. GDP
  4. ISO

Answer(s): D

Explanation:

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.



When would a procurement professional use the Pareto principle?

  1. when considering changing a supplier
  2. when conducting a value analysis
  3. when looking at whole-life-cycle costs
  4. when appraising a supplier

Answer(s): A

Explanation:

The Pareto Principle can be used when considering changing a supplier. It helps to categories suppliers by how strategically important the item is that they provide to the business.



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

  1. low value items, transactional suppliers
  2. low value items, strategic suppliers
  3. high value items, strategic suppliers
  4. high value items, transactional suppliers

Answer(s): C

Explanation:

A Category spend is high value and strategic suppliers. C category is low value, high volume of spend aka tail spend. The bits in the middle are B category. For example when you have a baby you have to buy lots of stuff for it. Your A spend is the big, important and expensive purchases like the pram, cot, carseat. You spend a lot of time in this category because they're important purchases you want to get right. The Tail Spend / C are all the little bits like nappies, baby shampoo, sippy cups. The B category are the bits in between - the purchases are kinda important but aren't as strategic or important as A category. Toys may fall into this category.



When selecting a supplier on technical merit, its important that the supplier is a good 'functional fit' for the organisation.
What is meant by 'functional fit'?

  1. the supplier is able to adhere to the same ethical standards
  2. the supplier is able to work at the same technical level as the buyer
  3. the supplier shares a common supply chain
  4. the supplier makes a similar profit to that of the buyer

Answer(s): B

Explanation:

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.



Viewing page 3 of 25
Viewing questions 11 - 15 out of 180 questions



Post your Comments and Discuss CIPS L4M4 exam prep with other Community members:

Join the L4M4 Discussion