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CIPS L4M4 Exam (page: 2)
CIPS Ethical and Responsible Sourcing
Updated on: 25-Dec-2025

Viewing Page 2 of 25
L4M4 PDF 180 Questions

Tendering is a more formal and regimented process than sending out requests for quotations.
Which of the following are services that are often put out to tender? Select THREE.

  1. security
  2. consultancy
  3. provision of raw materials
  4. office supplies
  5. cleaning

Answer(s): B,C,E

Explanation:

security, consultancy and cleaning are services which are often tendered as they tend to be high value and complex opportunities.
Office supplies and raw materials have less variables so you could use a RFQ for these instead. A hint for this is also the word services. Security, consultancy and cleaning are services. Raw Materials and Office Supplies are goods.



In the Public Sector, what is the evaluation criteria most often used when evaluating bids from suppliers?

  1. Most Economically Advantageous Tender
  2. Best Value for Money
  3. Cheapest Overall Tender
  4. Best Business Fit

Answer(s): A

Explanation:

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



Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?

  1. yes- point systems can be weighted any way a buyer choses so long as this is explained in the ITT
  2. yes- 25 is the correct weighting for quality question
  3. no- the weighting should total 10
  4. no- the weighting should total 100

Answer(s): D

Explanation:

weighted points systems for assessments should add up to 100. This is 100%.
An example is how this would work is
Price = 50%
Health and Safety questions= 30%
Qualifications = 20%



The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers.
What is a disadvantage of using a weighted point system?

  1. it allows transparency
  2. it is time-consuming to create
  3. it is easy to manipulate
  4. it is hard to be objective

Answer(s): A

Explanation:

Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.



The gross profit of a company can be calculated by using a simple formul

  1. What is this?
  2. total revenue - cost of sales
  3. assets - liabilities
  4. cost of sales - fixed assets
  5. debt owed - total sales

Answer(s): A

Explanation:

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



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