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The practice questions for L4M6 exam was last updated on 2025-12-15 .

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Question#1

When overcoming stakeholder resistance in a procurement-led project, which of the following groups would have the highest level of influence on other stakeholders?

A. 2 and 3 only
B. 1 and 4 only
C. 1 and 2 only
D. 3 and 4 only

Explanation:
Negative leaders and promoters hold the most influence. Negative leaders can sway opposition, while promoters can actively advocate for project success. Managing these stakeholders effectively is crucial in procurement projects.

Question#2

High financial investment is required to enter the marketplace

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 4 only
D. 2 and 4 only

Explanation:
Comprehensive and Detailed
A restricted market is characterized by high barriers to entry, often due to stringent government regulations and the need for substantial financial investment. These factors limit the number of new entrants, resulting in a market dominated by a few established suppliers. While existing suppliers may offer excellent services, the key defining features of a restricted market are the regulatory constraints and the significant capital required to compete.
Reference: CIPS L4M6 Study Guide

Question#3

Which of the following is characteristic of an adversarial relationship?

A. The communication is always poor
B. The price is more important than the quality of the product
C. They are only used for one-off purchases
D. The outcome of the deal is more important than the long term relationship

Explanation:
In an adversarial relationship "the outcome of the deal… is more important than maintaining the relationship over a long-term period" p.7. They can be characterised by poor communication and can be used for one-off purchases but be careful for words in answers such as 'only' and 'always', as these can be misleading; adversarial relationships aren't always for one-off purchases, and communication isn't always poor. The other answer is incorrect (price is more important) because it doesn't describe the relationship, which is what the question asked.

Question#4

A doctor's surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company.
What is the Manager's main motivation for doing this?

A. The supplier is an expert in their field
B. This will result in economies of scale
C. This will free-up internal resources
D. This will result in cost-savings

Explanation:
The reason for outsourcing in this example is that the IT firm is an expert in their field. The requirement is complex and important and this is the reason why it is not being delivered in-house. The other answers given CAN be reasons for out-sourcing, but don't relate to this example. For a full list of reasons a company could use outsourcing see p. 4-5

Question#5

Which of the following documents would you expect a supplier to submit as part of a Request for Proposal? Select THREE

A. Full pricing information
B. Liquidity Ratio
C. Risk Assessments
D. Method Statements
E. Gearing Ratio

Explanation:
You would expect a supplier to submit full pricing information, risk assessments and method statements. However, depending on what you’re procuring, you might not need to see risk assessments or method statements. Liquidity and Gearing may be looked at during the Pre-Qualification stage, but wouldn’t form part of a RFP. See p.76

Exam Code: L4M6Q & A: 243 Q&AsUpdated:  2025-12-15

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