CIPS L4M1 2025 – VERIFIED ACCURATE QUESTIONS
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CIPS L4M1: Scope and Influence of Procurement and Supply - Practice MCQs
1. According to CIPS, what is the most accurate definition of procurement?
a) The process of ordering goods from a supplier.
b) The function responsible for all activities from identifying a need to the end of a product's life
cycle.
c) A business function focused solely on achieving the lowest purchase price.
d) The transactional process of buying goods and services.
Answer: B
2. The 'Five Rights' of procurement are a traditional measure of performance. Which of the
following is NOT one of the Five Rights?
a) Right Quality
,b) Right Supplier
c) Right Time
d) Right Sustainability
Answer: D
3. A Procurement Manager is evaluating a potential supplier's financial stability, technical
capability, and quality management systems. This process is best known as:
a) Supplier Sourcing
b) Supplier Evaluation
c) Supplier Segmentation
d) Supplier Relationship Management
Answer: B
4. Which of the following best describes the term 'Stakeholder' in a procurement context?
a) Anyone who is affected by or can affect the activities of procurement.
b) Only the budget holder for a specific requirement.
c) The internal customers of the procurement department.
d) The senior management team of the organization.
Answer: A
5. The process of systematically identifying, quantifying, and managing the risks associated
with a supply chain is known as:
a) Risk Mitigation
b) Supply Chain Management
c) Supply Chain Risk Management
d) Contingency Planning
Answer: C
6. Which of the following is an example of an external macro environment factor (PESTLE
factor) affecting procurement?
a) The organization's corporate social responsibility policy.
b) A new data protection law passed by the government.
c) The introduction of a new e-procurement system.
d) A restructuring of the finance department.
Answer: B
7. What is the primary purpose of a Service Level Agreement (SLA)?
a) To define the price of a service.
b) To legally define the transfer of ownership of goods.
c) To define the specific, measurable standards of service a supplier must meet.
, d) To outline the payment terms for a contract.
Answer: C
8. In the context of contract law, what does the term 'Consideration' mean?
a) The careful thought given before signing a contract.
b) The price paid for the goods or services.
c) Something of value exchanged between the parties to a contract.
d) The legal capacity of the parties involved.
Answer: C
9. Which type of intellectual property right would be most appropriate to protect a new and
inventive manufacturing process?
a) Trademark
b) Copyright
c) Patent
d) Design Right
Answer: C
10. A Kraljic Portfolio Matrix classifies spend items based on two dimensions. What are they?
a) Cost and Quality
b) Profit Impact and Supply Risk
c) Supplier Power and Buyer Power
d) Value and Complexity
Answer: B
11. In the Kraljic Matrix, 'Leverage' items are characterized by:
a) High profit impact and high supply risk.
b) Low profit impact and low supply risk.
c) High profit impact and low supply risk.
d) Low profit impact and high supply risk.
Answer: C
12. The primary goal of a 'Zero-Based Budgeting' (ZBB) approach is to:
a) Adjust the previous year's budget for inflation.
b) Justify every item of expenditure, starting from zero.
c) Allocate budgets based on departmental performance.
d) Reduce the budget to zero by the end of the financial year.
Answer: B
13. Which of the following is a direct cost?
a) The salary of the procurement director.
AND COMPLETE SOLUTIONS (A+ GRADED) || 100%
GUARANTEED PASS <RECENT VERSION>
CIPS L4M1: Scope and Influence of Procurement and Supply - Practice MCQs
1. According to CIPS, what is the most accurate definition of procurement?
a) The process of ordering goods from a supplier.
b) The function responsible for all activities from identifying a need to the end of a product's life
cycle.
c) A business function focused solely on achieving the lowest purchase price.
d) The transactional process of buying goods and services.
Answer: B
2. The 'Five Rights' of procurement are a traditional measure of performance. Which of the
following is NOT one of the Five Rights?
a) Right Quality
,b) Right Supplier
c) Right Time
d) Right Sustainability
Answer: D
3. A Procurement Manager is evaluating a potential supplier's financial stability, technical
capability, and quality management systems. This process is best known as:
a) Supplier Sourcing
b) Supplier Evaluation
c) Supplier Segmentation
d) Supplier Relationship Management
Answer: B
4. Which of the following best describes the term 'Stakeholder' in a procurement context?
a) Anyone who is affected by or can affect the activities of procurement.
b) Only the budget holder for a specific requirement.
c) The internal customers of the procurement department.
d) The senior management team of the organization.
Answer: A
5. The process of systematically identifying, quantifying, and managing the risks associated
with a supply chain is known as:
a) Risk Mitigation
b) Supply Chain Management
c) Supply Chain Risk Management
d) Contingency Planning
Answer: C
6. Which of the following is an example of an external macro environment factor (PESTLE
factor) affecting procurement?
a) The organization's corporate social responsibility policy.
b) A new data protection law passed by the government.
c) The introduction of a new e-procurement system.
d) A restructuring of the finance department.
Answer: B
7. What is the primary purpose of a Service Level Agreement (SLA)?
a) To define the price of a service.
b) To legally define the transfer of ownership of goods.
c) To define the specific, measurable standards of service a supplier must meet.
, d) To outline the payment terms for a contract.
Answer: C
8. In the context of contract law, what does the term 'Consideration' mean?
a) The careful thought given before signing a contract.
b) The price paid for the goods or services.
c) Something of value exchanged between the parties to a contract.
d) The legal capacity of the parties involved.
Answer: C
9. Which type of intellectual property right would be most appropriate to protect a new and
inventive manufacturing process?
a) Trademark
b) Copyright
c) Patent
d) Design Right
Answer: C
10. A Kraljic Portfolio Matrix classifies spend items based on two dimensions. What are they?
a) Cost and Quality
b) Profit Impact and Supply Risk
c) Supplier Power and Buyer Power
d) Value and Complexity
Answer: B
11. In the Kraljic Matrix, 'Leverage' items are characterized by:
a) High profit impact and high supply risk.
b) Low profit impact and low supply risk.
c) High profit impact and low supply risk.
d) Low profit impact and high supply risk.
Answer: C
12. The primary goal of a 'Zero-Based Budgeting' (ZBB) approach is to:
a) Adjust the previous year's budget for inflation.
b) Justify every item of expenditure, starting from zero.
c) Allocate budgets based on departmental performance.
d) Reduce the budget to zero by the end of the financial year.
Answer: B
13. Which of the following is a direct cost?
a) The salary of the procurement director.
