Ethical and Responsible Sourcing

Here you have the best CIPS L4M4 practice exam questions

Preview the first 5 of 48 questions for free
These questions were last updated on May 25, 2026
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Question 1 of 48

A business may be faced with the challenge of deciding whether to source some of its requirements from external suppliers or whether to make them internally. There are many factors that need to be considered before arriving at such a decision.
Which of the following factors is likely to justify the decision to make the requirements internally?

The other suppliers are using older technology

The availability of in-house competencies and capacity to carry out the production

External suppliers are likely to be overcharging

External sourcing involves cumbersome tendering procedures

Question 2 of 48

A buyer has been tasked with placing an order for steel from another country and using Incoterms for the delivery. The buyer’s organization has an in-house transportation and export clearance department. During negotiations, the buyer has been able to achieve a 25% cost reduction, due to the buyer accepting responsibility to arrange the loading, transportation and export clearance.
Which Incoterm has been agreed?

EXW – Ex Works

FCA – Free Carrier

CIP – Carriage and Insurance Paid

FOB – Free on Board

Question 3 of 48

Tariffs and import duties imposed on a buying organization for goods purchased from an international supplier provide benefit to __________.

the supplying organization as they receive additional payment

the domestic industry through reduced competition

local competitors through lower prices

consumers by having access to lower priced goods

Question 4 of 48

A restricted tender process involves supplier selection.
This process focuses on which of the following?
1. Production capacity
2. Decommissioning costs
3. Total life cost
4. Financial stability

1 and 2 only

1 and 3 only

1 and 4 only

2 and 4 only

Question 5 of 48

An international supplier of shirts provides four different prices for each garment depending on the Incoterm selected by the buyer.
Which Incoterm would support achieving the lowest unit price per garment?

EXW

DAP

DDP

CPT

Question 6 of 48

Which of the following best describes the approach used when configuring high availability across multiple regions to ensure minimal downtime during failover events?

Deploy active-active clusters with cross-region replication and automated DNS failover to maintain service continuity

Use a single-region deployment with periodic manual snapshots for disaster recovery purposes

Configure load balancers in each region with independent database instances and no synchronization

Implement cold standby servers that require manual intervention to activate during outages

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