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CIPS L4M2 Practice Test Questions Answers

Exam Code: L4M2 (Updated 268 Q&As with Explanation)
Exam Name: Defining Business Needs
Last Update: 04-Nov-2025
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Questions Include:

  • Single Choice: 223 Q&A's
  • Multiple Choice: 45 Q&A's

  • L4M2 Overview

    CIPS L4M2 Exam Overview 

    Feature Description
    Module Code L4M2
    Module Title Defining Business Needs
    Credit Value 6
    Assessment Type Objective Response (Multiple Choice)
    Exam Format Computer-based
    Exam Duration 1.5 hours
    Passing Score Not publicly available (generally around 60-70%)

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    CIPS L4M2 Exam Topics Breakdown

     

    Feature Description
    Question Type Objective Response (Multiple Choice)
    Number of Questions Not publicly available (likely multiple-choice questions)
    Content Coverage Focuses on knowledge and understanding of topics related to defining business needs in procurement and supply. This may include:
    * Identifying and understanding stakeholder needs
    * Specifying requirements
    * Sourcing strategies
    * Cost analysis
    * Supplier selection criteria

    CIPS L4M2 CIPS Level 4 Diploma in Procurement and Supply Practice Exam Questions and Answers

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    CIPS L4M2 Exam Dumps FAQs

    The CIPS L4M2 exam is a certification exam that tests the candidates knowledge of market management and competitive forces of goods and services in procurement and supply. It is part of the Level 4 Diploma in Procurement and Supply qualification.

    The CIPS L4M2 exam is ideal for professionals seeking to:

    1. Develop their skills in defining and documenting business needs.
    2. Build expertise in market analysis and supplier selection.
    3. Advance their procurement and supply chain careers.
    4. Earn a recognized CIPS qualification.

    The CIPS L4M2 exam covers the following topics:

    • Understanding the role of market management and competitive forces of goods and services in procurement and supply
    • Devising a business case for requirements to be sourced from external suppliers
    • Understanding the use of specifications in procurement and supply

    The CIPS L4M2 exam typically consists of 60 multiple-choice questions.

    The duration of the CIPS L4M2 exam is 120 minutes.

    The passing score for the CIPS L4M2 exam is 50%.

    Solution2Pass offers a comprehensive package to help you ace the L4M2 exam, including:

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    Yes, Solution2Pass interactive CIPS L4M2 exam questions simulates the actual exam environment with real-time scoring and detailed feedback. It is the perfect way to test your knowledge and identify areas for improvement.

    L4M2 Questions and Answers

    Question # 1

    Datong is a defence and law enforcement equipment supplier. They are developing new product but largely concerns about the detailed specifications of components and the capability of supply market. Which of the following approach should Datong adopt in order to optimise the specification and shorten time to market?

    A.

    Request for quotation from potential suppliers

    B.

    Invite the supplier to tendering process

    C.

    Early supplier involvement

    D.

    Control the budget tightly

    Question # 2

    Warwickshire Ambulance Service (WAS) is an NHS Trust. It operates throughout Warwickshire and the neighbouring areas. It has three core areas of activity, namely the provision of Emergency Ambulance Services, routine Patient Transport Services, and Logistic Medical Services. The agency is working towards higher service level through benchmarking. Which of the following is the benefit of benchmarking to WAS?

    A.

    Benchmarking is a panacea for all WAS's problems

    B.

    It will help WAS create performance standards derived from an analysis of the best in business

    C.

    It helps WAS identify better ways to deliver service through a cookbook process

    D.

    It will help WAS analyse the competitors in the industry

    Question # 3

    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?

    A.

    Performance

    B.

    Design

    C.

    Conformance

    D.

    Technical

    Question # 4

    Lider Ltd is a leading bathroom furniture manufacturer in India. The company has more than 30 years experience in the market with extended knowledge of engineering and customers' taste. Lider is planning to launch a new type of bath fitting next year which offers Bluetooth connectivity and thermostat display. The company gathers a team of multi-disciplines, including engineering, procurement, sales and marketing. At the first team meeting, the project leader tells the team to discuss which functions will be valued by the customers, and how to deliver those functions with the lowest costs possible. Which of the following describes the process that the project team is undertaking?

    A.

    Cost analysis

    B.

    Standardisation

    C.

    Value engineering

    D.

    Just in time

    Question # 5

    Ray is a procurement officer working for a medium-sized enterprise. Ray is due to renew the IT support package for one of the company's software systems, which is used for selling a niche, but important product.

    Tech Solutions are the only supplier who can provide support for this specialist software. The software support package represents only 3% of Tech Solutions' overall sales income, however. Ray and Tech Solutions have an effective working relationship Which statement below describes the bargaining power in this situation?

    A.

    Tech Solutions has increased bargaining power because Tech Solutions and Ray have an effective relationship

    B.

    Tech Solutions has increased bargaining power because Tech Solutions are the only supplier available

    C.

    Ray has increased bargaining power, because the requirement for software support is ongoing

    D.

    Ray has increased bargaining power, because the software support package only supports 3% of Tech Solution’s sales

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