Free CIPS L4M6 Exam Questions

Question 1

A local government procurement team is undertaking a full review of their current internal working processes. The team of buyers currently have a partnership-style relationship with their routine suppliers. Is this the best relationship style to use?

A : No, as there are many suppliers available

B : No, as these are critical items to the buying organization

C : Yes, as they present a great deal of risk to the organization

D : Yes, as these are low-value items

Answer: A

Question 2

Price fluctuations can affect profitability. Is this statement correct?

A : Yes, if the product's costs increase and the price does not

B : No, only decisions made by the chief executive affect the price

C : No, price is not related to profitability

D : Yes, as sales may drop if the product is price inelastic

Answer: A

Question 3

A local government procurement team is undertaking a full review of their current internal working processes. The team of buyers currently have a partnership-style relationship with their routine suppliers. Is this the best relationship style to use?

A : No, as there are many suppliers available

B : No, as these are critical items to the buying organization

C : Yes, as they present a great deal of risk to the organization

D : Yes, as these are low-value items

Answer: A

Question 4

Price fluctuations can affect profitability. Is this statement correct?

A : Yes, if the product's costs increase and the price does not

B : No, only decisions made by the chief executive affect the price

C : No, price is not related to profitability

D : Yes, as sales may drop if the product is price inelastic

Answer: A

Question 5

Which of the following suggests criteria for supplier qualification to buying organisation?

A : ART objectives

B : rter's 10 Cs

C : RI ratio

D : EEPLE analysis

Answer: B