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L4M2 Defining Business Needs is now Stable and With Pass Result | Test Your Knowledge for Free

L4M2 Practice Questions

Defining Business Needs

Last Update 17 hours ago
Total Questions : 303

Dive into our fully updated and stable L4M2 practice test platform, featuring all the latest CIPS Level 4 Diploma in Procurement and Supply exam questions added this week. Our preparation tool is more than just a CIPS study aid; it's a strategic advantage.

Our CIPS Level 4 Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L4M2. Use this test to pinpoint which areas you need to focus your study on.

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Question # 1

A company department is writing a business case to justify the purchase of an expensive piece of capital equipment. Which of the following should be included in the business case?

Terms and conditions of contract

Tender evaluation criteria

Degree of added value

Financial plan

Options:

A.  

1 and 2 only

B.  

2 and 3 only

C.  

3 and 4 only

D.  

1 and 4 only

Discussion 0
Question # 2

The procurement officer for Hunter Manufacturing has been tasked to procure a new manufacturing software management system. They have consulted all relevant internal stakeholders and have the following high-level requirements: flexibility throughout the project, and the supplier to recommend the best solutions for building the system. Which type of specification should be developed?

Options:

A.  

Performance

B.  

Design

C.  

Conformance

D.  

Technical

Discussion 0
Question # 3

A procurement manager is seeking to control costs for his organisation. His predecessor constantly spent more money than budgeted, so he has decided to start this budget from scratch and ignore the previous periods. Which type of budget is this?

Options:

A.  

Zero-based budget

B.  

Rolling budget

C.  

Incremental budget

D.  

Fixed budget

Discussion 0
Question # 4

A large sports organisation requires some additional racing equipment to be built. It should match exactly the pre-determined technical specifications and requires exact compatibility. Which of the following specifications would be most appropriate?

Options:

A.  

Conformance specification

B.  

Performance specification

C.  

Outcome specification

D.  

Product specification

Discussion 0
Question # 5

Which of the following specific markets engage in creation, liquidation and change of ownership of stock?

Options:

A.  

Financial

B.  

Manufacturing

C.  

Construction

D.  

Agriculture

E.  

Retail

Discussion 0
Question # 6

CP Group places emphasis on the following business objectives:

Responsive production processes to react quickly to market changes

Collaboration and technological integration

New products launched and on sale very quicklyWhich of the below business markets does CP Group belong to?

Options:

A.  

Construction

B.  

Financial

C.  

Retail

D.  

Agriculture

Discussion 0
Question # 7

Raw materials used in the production of a saleable product are classed as ...

Options:

A.  

Direct costs

B.  

Indirect costs

C.  

Overheads

D.  

Fixed costs

Discussion 0
Question # 8

Which of the following technology is likely to be an innovation in financial sector?

Options:

A.  

E-commerce

B.  

Robotics

C.  

E-auction

D.  

Blockchain

Discussion 0
Question # 9

What will be the result of retaliation between business rivals in an industry?

Options:

A.  

Higher exit barrier

B.  

More new entrants

C.  

Lower profit

D.  

Greater bargaining power of suppliers

Discussion 0
Question # 10

A procurement manager consolidates the company expense on printing and office supplies into broader range of spend category. Other senior managers are concerned that it may increase company’s spend. Is that concern justified?

Options:

A.  

No, because the broader range of spend category can increase the value of the contract and the buyer may get volume discount

B.  

Yes, because the consolidation may create a large contract that costs more than placing each purchase order

C.  

No, because the consolidation will help the supplier to shorten deliver time.

D.  

Yes, because the suppliers can’t provide a broader range of products and they will fail to deliver

Discussion 0
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