Free CIPS L3M4 Exam Questions

Question 1

Prior to circulating the service specification to a tendering supplier, it is good practice for the purchasing organisation to request completion of a non-disclosure agreement. Is this statement correct?

A : No, because the non-disclosure agreement only applies after contracting

B : Yes, because the non-disclosure agreement protects intellectual property

C : Yes, because the non-disclosure agreement encourages transparent bidding

D : No, because the non-disclosure agreement has no legal standing

Answer: B

Question 2

If the speed of change was incremental, and the extent of change was realignment, what single term might we use to describe this change?

A : Revolution

B : Evolution

C : Adaptation

D : Reconstruction

Answer: C

Question 3

Which one of the following is very commonly seen as being the primary role of the procurement function (especially by those outside the procurement function)?

And yet on many occasions, it should not be the primary focus.

A : Participating in international procurement conferences and developing staff

B : Developing deep relationships with long-term suppliers of key goods and services

C : Cost reduction

D : Sourcing new materials for products under development

Answer: C

Question 4

You are a procurement manager for a successful electrical component re-seller and distributor. The company presently carries stock of over fifty thousand different items, some of which may be variances of the same product, or similar products from different manufacturers. The managing director of the business is looking to increase the margin on products sold and has asked for your support. It is a competitive industry with a customer base that will be resistant to a price increase. Which of the following could support this request?

A : Standardize the products purchased

B : Improve the quality of products purchased

C : Reduce the range of products purchased

D : Increase the range of products sold

Answer: C

Question 5

You are a procurement manager for a successful electrical component re-seller and distributor. The company presently carries stock of over fifty thousand different items, some of which may be variances of the same product, or similar products from different manufacturers. The managing director of the business is looking to increase the margin on products sold and has asked for your support. It is a competitive industry with a customer base that will be resistant to a price increase. Which of the following could support this request?

A : Standardize the products purchased

B : Improve the quality of products purchased

C : Reduce the range of products purchased

D : Increase the range of products sold

Answer: C