Free CIPS L4M2 Exam Questions

Become CIPS Certified with updated L4M2 exam questions and correct answers

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Total 305 Questions | Updated On: Mar 26, 2025

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Question 1

Which of the following are most likely to negatively affect the suppliers’ bargaining power in a specific market? Select TWO that apply:

A : ere are almost no threats of backward integration

B : yers incur high cost when they change their suppliers

C : ere are no differences among suppliers' products

D : ny suppliers are intent on integrating buyers into their business

E : bstitute products are readily available in the market

Answer: A,C

Question 2

When developing a business case for a new product, a procurement department must consider...

A : Terms and conditions of contract

B : The supply market

C : The supplier positioning model

D : Indirect costs

Answer: B

Question 3

A food manufacturer wants to predict the pricing point for a new and innovative health drink. Which method of market research would be beneficial to receive the most accurate information?

A : Focus groups

B : Consumer data

C : Sales trends

D : Internet searches

Answer: B

Question 4

How can a procurement department meet the business needs when purchasing leverage items?

A : Developing long-term relationships such as partnerships

B : Developing efficient order processes such as e-procurement

C : Developing effective contracts such as call-off contracts

D : Developing buying power such as competitive tendering

Answer: D

Question 5