Free CIPS L4M2 Exam Questions

Become CIPS Certified with updated L4M2 exam questions and correct answers

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Total 367 Questions | Updated On: Jul 23, 2026

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Question 1

Which of the following factors would mean a buyer had high bargaining power in a competitive market? Select TWO that apply.

A : Many substitute products are available

B : Buyers are procuring a low volume of products

C : High switching costs for the buyer

D : Buyers are demanding large volumes

E : Products are highly differentiated

Answer: A,D

Question 2

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 3

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 4

As the lead procurement manager, you are asked to compile a business case for a large project. Which shouldbe included?Costs and risksList of large suppliersBusiness benefitsInformal recommendation

A : 1 and 3 only

B : 2 and 4 only

C : 1 and 4 only

D : 2 and 3 only

Answer: A

Question 5