CIPS L4M8 CHAPTER 2 EXAM
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
Identifying and vetting those suppliers who are able to supply the product or service, as
required in a specification from a procurement professional - ANS Sourcing involves
- User need
- Raise requisition
- Approved process
- Issue PO
- Receive goods/service
- Approve invoice - ANS Different stages of Ordering
- Understand the need
- Develop strategy
- Raise requisition
- Source suppliers
- Issue ITT/RFQ
- Negotiate and award contract
- SRM/contract management - ANS Different stages of Sourcing
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,- Localised
- Regional
- National
- Global - ANS Sourcing can take place in the following locations
conducted with suppliers who are near to the buying organisation - ANS Localised sourcing
conducted with suppliers in the same area, but slightly further away than the localised choices -
ANS Regional sourcing
conducted throughout an entire country. EG suppliers may be hundreds of miles away from the
buying organisation but they are still controlled by the same legislation and regulations -
ANS National sourcing
conducted worldwide. This type of sourcing often involves different legislation and regulations
to those of the buying organisation - ANS Global sourcing
- Urgency of need: local suppliers shorter lead times
- Volume of need: larger quantities for economies of scale better for global sourcing
- Quality of need: high quality may need further than local
- Budget allocated to need: low budget may need global sourcing - ANS The buyer needs to
think about the following factors when deciding which type of sourcing is best
Verbal or Written - ANS Contracts can either be
1. Intention
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 2. Capacity
3. Offer
4. Consideration
5. Acceptance - ANS The five stages of forming a contract
the contracting parties must intend to enter into a legal contract. If there is no intention to
create a legal relationship, the contract is not legally binding - ANS Stages of a contract:
1.Intention
all parties should be of sound mind and fully aware of their contractual obligations -
ANS Stages of a contract: 2. Capacity
the promise in exchange for performance from the other party - ANS Stages of a contract: 3.
Offer
the exchange of one thing for another within an agreement - ANS Stages of a contract: 4.
Consideration
the point where the offeree accepts the proposal from the offeror. Offers can be accepted by
body language, a formal letter or email or by paying for the goods/services - ANS Stages of a
contract: 5. Acceptance
an expression of willingness to negotiate with the intention of forming a contract -
ANS Invitation to treat
are always present in a contract in a contract and are set by national law. The do not have to be
written or verbally agreed: they always exist - ANS Implied terms
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2025/2026.
Identifying and vetting those suppliers who are able to supply the product or service, as
required in a specification from a procurement professional - ANS Sourcing involves
- User need
- Raise requisition
- Approved process
- Issue PO
- Receive goods/service
- Approve invoice - ANS Different stages of Ordering
- Understand the need
- Develop strategy
- Raise requisition
- Source suppliers
- Issue ITT/RFQ
- Negotiate and award contract
- SRM/contract management - ANS Different stages of Sourcing
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,- Localised
- Regional
- National
- Global - ANS Sourcing can take place in the following locations
conducted with suppliers who are near to the buying organisation - ANS Localised sourcing
conducted with suppliers in the same area, but slightly further away than the localised choices -
ANS Regional sourcing
conducted throughout an entire country. EG suppliers may be hundreds of miles away from the
buying organisation but they are still controlled by the same legislation and regulations -
ANS National sourcing
conducted worldwide. This type of sourcing often involves different legislation and regulations
to those of the buying organisation - ANS Global sourcing
- Urgency of need: local suppliers shorter lead times
- Volume of need: larger quantities for economies of scale better for global sourcing
- Quality of need: high quality may need further than local
- Budget allocated to need: low budget may need global sourcing - ANS The buyer needs to
think about the following factors when deciding which type of sourcing is best
Verbal or Written - ANS Contracts can either be
1. Intention
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 2. Capacity
3. Offer
4. Consideration
5. Acceptance - ANS The five stages of forming a contract
the contracting parties must intend to enter into a legal contract. If there is no intention to
create a legal relationship, the contract is not legally binding - ANS Stages of a contract:
1.Intention
all parties should be of sound mind and fully aware of their contractual obligations -
ANS Stages of a contract: 2. Capacity
the promise in exchange for performance from the other party - ANS Stages of a contract: 3.
Offer
the exchange of one thing for another within an agreement - ANS Stages of a contract: 4.
Consideration
the point where the offeree accepts the proposal from the offeror. Offers can be accepted by
body language, a formal letter or email or by paying for the goods/services - ANS Stages of a
contract: 5. Acceptance
an expression of willingness to negotiate with the intention of forming a contract -
ANS Invitation to treat
are always present in a contract in a contract and are set by national law. The do not have to be
written or verbally agreed: they always exist - ANS Implied terms
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
