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CIPS Certification
L5M5 Exam
CIPS.L5M5.v2026-02-26.q77 Dumps

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Question 26

People in the UK earn entitlements to Social Security through National Insurance contributions. Under what circumstances are payments provided? Select THREE

A.Sickness
B.Redundancy
C.Retirement
D.Change of job
E.Marriage

Correct Answer: A,B,C

Comprehensive and Detailed Explanation From Exact Extract of Documents:
Social Security in the UK provides benefits such as sick pay, redundancy support, pensions, and maternity/paternity payments. The L5M5 study guide (p.93) specifies that payments can be made in cases of sickness (A), loss of employment (B), and retirement (C). Benefits are not provided simply for changing jobs (D) or marriage (E), as these do not affect financial or employment security. Procurement professionals need to understand social security systems, especially when working with international suppliers, since welfare provisions differ globally and affect labour conditions.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.93

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Question 27

Jung Ltd is hiring a third-party auditor. Which two requirements should be mandatory?

A.At least 5 years' experience
B.Be approved by a certified body
C.Have sector-specific knowledge
D.Have an auditing qualification

Correct Answer: B,C

Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.210) specifies that independent auditors must be approved by a certified body (B) and have sector-specific knowledge (C) to assess compliance effectively. While qualifications (D) may be desirable, there is no universal "auditor qualification," and experience (A) varies by sector. CIPS also stresses the importance of auditor qualities such as independence, objectivity, and integrity. For procurement, selecting the right auditor ensures credible, reliable assurance of supplier compliance with ethical and sustainability requirements.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.210

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Question 28

Knowledge that is not taught or learned from books but gained through personal experience is known as what?

A.Inherent knowledge
B.Primary knowledge
C.Tacit knowledge
D.Implied knowledge

Correct Answer: C

Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (old p.40, new p.64) defines tacit knowledge as knowledge gained through personal experience, observation, and practice rather than formal education. For example, an employee may develop an instinct for supplier negotiation strategies over years of practice. By contrast, explicit knowledge can be formally recorded and taught. Tacit knowledge provides competitive advantage because it is harder for competitors to imitate. Procurement leaders must capture and share tacit knowledge within teams to strengthen organisational learning.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.64

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Question 29

Which tier of a supply chain would the original equipment manufacturer have the closest relationship with?

A.No tier
B.Tier 1
C.Tier 2
D.Tier 3

Correct Answer: B

As shown in the figure, Tier 1 suppliers directly provide systems or services to the OEM. According to the study guide, the correct answer is Choice B. Reference: LO-2.1; Page 146; Mapping supply chains to achieve supply chain transparency

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Question 30

Which of the following standards is applicable to governments rather than private businesses?

A.UN Global Compact
B.ILO Fundamental Principles of Human Rights
C.SA8000
D.OECD Guidelines for MNEs

Correct Answer: B

Comprehensive and Detailed Explanation From Exact Extract of Documents:
The ILO Fundamental Principles of Human Rights apply to governments, as ILO conventions must be ratified and enforced at the national level. The L5M5 study guide (p.271) contrasts this with frameworks aimed at businesses: UN Global Compact (A), SA8000 (C), and OECD Guidelines for Multinational Enterprises (D). Governments are responsible for implementing and enforcing ILO standards, while businesses align with other voluntary or certification frameworks. Procurement professionals must understand which standards apply to suppliers and which are obligations for governments when working internationally.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.271

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