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  1. Home
  2. CIPS Certification
  3. L4M6 Exam
  4. CIPS.L4M6.v2023-05-24.q44 Dumps
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Question 1

A company has just hired a new cleaning firm to clean their offices. The specification for the clean was detailed in an appendix in the contract and included a list of pre-approved products that the cleaning firm should use. The cleaners that were sent to site had not read the contract and therefore did not use the appropriate products. What is the reason for the failure of this?

Correct Answer: A
This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.
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Question 2

Which of the following is a valid reason for ending a relationship with a supplier?

Correct Answer: C
CIPS state the following reasons for the end of supplier relationships; the contract comes to a natural end, the contract is re-tendered, a material breach or the supplier becomes insolvent (p.15) In this case the only valid option is 'the contract has ended'.
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Question 3

Which of the following are Intellectual Property Rights that you would you encounter in procurement and supply contracts? Select THREE.

Correct Answer: C,D,E
Intellectual Property Rights include; Patents, Copywrite, Trademarks and Trade Secrets. P.114
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Question 4

In a monopoly market, which of the following statements is true?

Correct Answer: A
In a monopoly there is only one supplier- therefore their power is strong. Buyers in this market are price takers and their power is weak. There is generally a strong barrier to entry into a monopoly market so the threat of new entrants is low. There is no rivalry. There are many questions in the exam on Porter's 5 Forces - see p. 39
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Question 5

Why is it more difficult for buyers in the public sector to build relationships with suppliers?

Correct Answer: D
It can be difficult for buyers in the private sector to build relationships with suppliers because of rules that state competitive tenders must be undertaken every few years (within the EU this is usually every 4). This means that both parties aren't as invested in developing the relationship as it's possible the contact will end shortly. Competitive tendering is a requirement in the public sector to ensure value for money for taxpayers. See p.79 for further details. There are no rules stating Public Sector organisations can't have good relationships with suppliers, and in fact most will have good relationships with their current suppliers- the issue is that neither party can get too invested in the relationship as everyone knows it may end shortly. There are rules, however, against entering into Partnership relationships (which is discussed in chapter 3).
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