CIPS L3M4 Practice Verified Answers - Pass Your Exams For Sure! [2025]
Valid Way To Pass CIPS Level 3 Advanced Certificate in Procurement and Supply Operations's L3M4 Exam
NEW QUESTION # 80
Which one of the following is very commonly seen as being the primary role of the procurement function (especially by those outside the procurement function)?
- A. And yet on many occasions, it should not be the primary focus.
- B. Participating in international procurement conferences and developing staff
- C. Cost reduction
- D. Sourcing new materials for products under development
- E. Developing deep relationships with long-term suppliers of key goods and services
Answer: A
Explanation:
Cost reduction is often seen as being not only the primary role, but sometimes the only role, of the procurement function.
The other answer options give an indication of what activities can sometimes be more significant.
NEW QUESTION # 81
The letters 'BPR' stand for:
- A. Business People Re-training
- B. Business Project Re-engineering
- C. Business Procurement Re-engineering
- D. Business Process Re-engineering
Answer: D
Explanation:
Business Process Re-engineering is the correct answer.
As far as I am aware, the other terms do not exist. They are 'red herrings'.
NEW QUESTION # 82
'The power of an individual to persuade others may come from perceived attractiveness and right to be given respect' Which of French and Raven's categorisations applies here?
- A. Referent
- B. Reward
- C. Legitimate
- D. Coercive
Answer: A
Explanation:
The answer is 'referent power'.
An example might be a long-standing employee who 'knows the ropes' and helps others. Or it may be a famous person whose fame gives them power.
In some sources this may be known as 'charisma power'.
For me a great example of this form of power is Bill Clinton, who combined his allegedly substan-tial charisma, along with legitimate power and informational power. Presumably as US President, he also had access to coercive power as well as reward power. A powerful guy in a powerful position. People who have dealt with him long after he ceased to be the President say that his referent / cha-risma power lives on, hugely.
NEW QUESTION # 83
'The individual does not believe that the change is really happening and looks for evidence that it is not true'. Which stage of the Kubler-Ross model does this describe?
- A. Depression
- B. Shock
- C. Frustration and anger
- D. Denial
Answer: D
Explanation:
Denial - disbelief that whatever it is has actually happened.
The other answers shown are part of the Kubler-Ross cycle which is: shock, denial, frustration and anger, depression, experimentation, decision, integration.
NEW QUESTION # 84
One of the appendices to a formal contract should be a 'pricing schedule'. This is because price is the most important item of a contract and it is a requirement for it to be detailed in a pricing schedule. Is this a correct statement?
- A. Yes, because the contract is always a very large document and the parties need easy access to price information to negotiate increases
- B. Yes, because all contracts are required to have detailed pricing terms, such as fixed prices, incentives, and price escalation, which must be attached
- C. No, because it is not a requirement to attach a pricing schedule if complex pricing terms are not applicable to that particular contract
- D. No, a pricing schedule is required only if other attachments such as a non-disclosure agreement and insurance policy are also appended
Answer: C
NEW QUESTION # 85
Goals should be either / or (choose two):
- A. SMARTA
- B. SMARTIES
- C. SMARTLY
- D. SMART
Answer: A,D
Explanation:
Specific, measurable, achievable, realistic, time-bound, and possibly actionable or accountable.
'Smartly' is an adverb which is not relevant, and for those who don't know, 'Smarties' are a branded chocolate sweet.
NEW QUESTION # 86
Giving employees the right to make modest decisions in an independent and self-directing way, on behalf of the organisation. Trusting employees to do the right thing, for example, when faced with a customer complaint.
- A. Endorsement
- B. Empowerment
- C. Entitlement
- D. Endowment
Answer: B
Explanation:
Empowerment enables some decision-making to be at the 'lowest level' of the organisation, often creating enhanced levels of customer and job satisfaction. Empowerment can sometimes include small-scale authority to commit modest funds. Empowerment can enable staff to 'own' a problem.
The other terms shown are not relevant.
NEW QUESTION # 87
'A person may exert power on the basis of their formal authority or status' Which of the French and Raven sources of power is being described here?
- A. Legitimate
- B. Reward
- C. Expert
- D. Referent
Answer: A
Explanation:
The Chief Executive has power because they are in the post of the Chief Executive.
The Head of Procurement has power because they carry that job title.
They may also have other sources of power such as expert power, or charisma, but the correct re-sponse to the question 17
'Coercive' and 'informational' can also be sources of power not shown in the question.
NEW QUESTION # 88
'Positivity' is about (choose one):
- A. A 'can do' attitude
- B. Adopting a particular viewpoint
- C. A tendency to develop theories
- D. Knowledge of electronics
Answer: A
Explanation:
This is a reference to the idea that by thinking positively, one can achieve more - by having a 'can do' attitude.
The other answers are puns on the word 'positivity'. More or less.
NEW QUESTION # 89
Daryl was expecting some spare parts to arrive from abroad by air freight. He hears on the news that flights have been delayed due to an ash cloud from a volcano that has erupted. Which contract provision is likely to deal with this scenario?
- A. Warranties
- B. Force majeure
- C. Caveat emptor
- D. Confidentiality
Answer: B
NEW QUESTION # 90
Northern Province Authority (NPA) seeks to use market dialogue to improve the contract specification for a new procurement tender of a domestic waste collection contract. Which of the following topics would be appropriate for dialogue with potential suppliers?
- A. Pricing proposals
- B. Contract terms
- C. Human resourcing
- D. Service innovation
Answer: D
NEW QUESTION # 91
'Collaborate, communicate, XXXX and coerce'. Select the missing term.
- A. Decide
- B. Consult
- C. Dictate
- D. Direct
Answer: D
Explanation:
'Collaborate, communicate, direct and coerce.'
Methods of communicating change. These terms are taken directly from your syllabus for this sub-ject, and reflect a decreasingly co-operative approach to communicating / implementing change.
Managers can decide where they wish to be on this spectrum of behaviours, rather like McGregor suggests with Theory X and Y.
NEW QUESTION # 92
Peter Kraljic first published his Portfolio Purchasing Model in a paper entitled 'Purchasing Must Become Supply Management' in the Harvard Business Review in September of which year?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
Explanation:
It was in 1983.
The original paper is available for purchase for a very modest fee from the Harvard Business Review website.
The original paper is lucid, thought-provoking and in my opinion desirable reading for any-one who wishes to seriously learn about procurement. Especially tutors of procurement - ask your CIPS tutor if they've read the original work!
If you're having trouble understanding what some of all this 'Kraljic talk' is about, treat yourself for $5 to the original work - the matrix has since been much discussed and developed, but is widely misunderstood, even by many who should know better. Professor Kraljic will appreciate the royal-ties. :)
NEW QUESTION # 93
While it is recognised that longer-term contracts have the potential to drive significant benefits for the organisation, a number of situations are more suited to making one-off purchases. Which of the below situations is likely to be more suited to a one-off purchase?
- A. The purchase of compatible IT infrastructure equipment
- B. The ordering of equipment for a special project
- C. The purchase of internal and external audit services
- D. A requirement for the maintenance of buildings
Answer: B
NEW QUESTION # 94
Which one of the following is unlikely to appear in an organisational procurement manual?
- A. Procedures
- B. Policies
- C. Staff names
- D. Instructions
Answer: C
Explanation:
Staff names.
One of the 'benefits' of the creation of organisations large enough to have procurement manuals is that individuals can be replaced in their posts by others. This is part of the basis of Weber's theory of bureaucracy.
Charles Handy, a great UK management writer tells a story of how he took up a new post for a large oil company, and on his office door the job title was affixed permanently, but his own name was presented in a readily-replaceable label. He realised when he saw this how easily his employer thought he could be replaced.
Thus, procurement manuals are unlikely to name individual staff members - policies and procedures, posts and activities, yes.
NEW QUESTION # 95
Which of the following is a benefit from compliance with procurement processes and procedures? Select all that apply.
- A. Reducing error
- B. Reducing the opportunity for fraud / crime
- C. Minimising the likelihood of damage to the organisation's reputation
- D. Avoiding unnecessary costs
Answer: A,B,C,D
Explanation:
All of these options apply.
NEW QUESTION # 96
Thinking about the PESTEL model, under which category would climate change most suitably fall?
- A. Legal
- B. Socio-cultural
- C. Economic
- D. Environmental
Answer: D
Explanation:
Environmental - a rather straightforward question and answer.
NEW QUESTION # 97
A cross-functional team is created to help progress the development of a new product in a manufac-turing business. Which two of the following activities are unlikely to be allocated to the representa-tive from the accounting and finance function?
- A. To calculate anticipated sales demand at the target price
- B. Calculate the expected overall cost of the product
- C. Check that the expected cost provides a suitable profit margin
- D. Plan the recruitment of additional staff and training of them
Answer: A,D
Explanation:
Calculating sales demand is likely to be a sales / marketing activity; planning the recruitment / train-ing of staff is likely to be a human resources activity.
The other two activities shown are likely to be right up accounting and finance's street.
NEW QUESTION # 98
The Grain Building Limited company contracts with many smaller suppliers on projects where agents can create uncertain working conditions, including changes to the scope of work, start times and late changes. The work is often affected by the weather, shortages of parts, or client indecision. To mitigate this, Grain Building Limited contracts with known and reliable suppliers on the basis of the cost-plus pricing model.
Which is the correct meaning of the term "cost-plus"?
- A. Costs plus overheads, profits, and taxes
- B. Costs plus agreed profit
- C. Costs plus delivery and profit
- D. Costs plus taxes and profit
Answer: B
NEW QUESTION # 99
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L3M4 practice test questions, answers, explanations: https://drive.google.com/open?id=1lS12Z6J2MBUto2ysBbYjK_U09MdSIO1a
