Free Practice CIPS L4M2 Exam Questions 2025

Stay ahead with 100% Free Defining Business Needs L4M2 Dumps Practice Questions

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Total 305 Questions | Updated On: Apr 08, 2025

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Question 1

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 2

What issue is a buyer most likely to experience if the technical specification sent to suppliers as part of a Request For Quotation (RFQ) is insufficient?

A : The buyer will receive quotes at different times from suppliers, which will require greater coordination with other members of the sourcing team

B : The buyer will receive costs from suppliers in different formats, which will make it difficult to compare costs on a like-for-like basis

C : The buyer will not be able to compare different suppliers' costs directly as the suppliers will have had to make assumptions on the specification

D : The buyer will need to work with their finance colleagues and business stakeholders to adjust the budget available for the project

Answer: C

Question 3

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 4

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 5

A supplier of software has received a request to quote for a product. The software supplier considers that the buying organisation making the request provides relatively little benefit or alignment to their own strategy. Which one of the following options describes how the supplier might react to the buyer?

A : The supplier will seek to exploit the situation and drive a high price

B : The supplier will attempt to foster a strategic relationship with the buyer

C : The supplier will proThe supplier will provide the buyer with attractive additional software support benefits vide the buyer with attractive additional software support benefits

D : The supplier will seek to offer the lowest price possible

Answer: A

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Total 305 Questions | Updated On: Apr 08, 2025

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