Free 2023 CIPS Level 5 Advanced Diploma in Procurement and Supply L5M2 dumps are available on Google Drive shared by Pass4guide
Welcome to download the newest Pass4guide L5M2 PDF dumps: https://torrentvce.pass4guide.com/L5M2-dumps-questions.html ( 117 Q&As)
NEW QUESTION 33
Which of the following will you put into box 5?
- A. NDA
- B. Force Majeure
- C. service credits
- D. Conformance Specification
Answer: A
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION 34
Which of the following are key areas of ISO 26000 Social Responsibility? Select THREE.
- A. human rights
- B. efficient systems
- C. consumer issues
- D. organisational governance
- E. quality management
Answer: A,C,D
Explanation:
Explanation
1 3 and 4 are the correct answers. There are 7 key areas that ISO 26000 focuses on. As well as these three, there is also labour practices, the environment, fair operating practices and community involvement. See p. 51 of the study guide. ISOs are a popular exam topic so do revise these before the exam.
NEW QUESTION 35
Risk Management is a process with several steps. Which of the following is the last step of the cycle?
- A. treat
- B. monitor and review
- C. communicate and consult
- D. identify risks
Answer: B
Explanation:
Explanation
monitor and review is the last stage. The full cycle is; establish context - identify risks - analyse and evaluate risks - treat -communicate and consult - monitor and review. See p. 142
NEW QUESTION 36
Which of the following will you put into box 2?
- A. terminate
- B. tolerate
- C. treat
- D. transfer
Answer: C
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
Cashflow issues can lead to serious financial problems and the company going bust. Therefore this risk must be treated.
NEW QUESTION 37
Kevin is a consultant who works for himself and is predominantly based at home, except for when he visits clients. He has recently taken on a role advising a client about the feasibility of building a new railway station in a village. Which of the following insurances would be vital for Kevin to take out?
- A. trade credit
- B. product liability
- C. public liability
- D. professional indemnity
Answer: D
Explanation:
Explanation
As a consultant he will need Professional Indemnity insurance. This insurance is for roles that include providing advice, designs and services. Insurances comes up a bit in the exam so revise this from p.96-100
NEW QUESTION 38
Which of the following will you put into box 4?
- A. treat
- B. terminate
- C. tolerate
- D. transfer
Answer: B
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated with low confidence
NEW QUESTION 39
Which of the following will you put into box 5?
- A. outsource
- B. insurance
- C. forward contract
- D. new technology
(Correct)
Answer: D
Explanation:
Explanation
New technology (ie a new web portal or payment mechanism) would help treat this risk.
NEW QUESTION 40
SA 8000 is an alternative to which ISO?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
Explanation:
Explanation
SA8000 is Social Accountability, this is an alternative to ISO 20400 which is Sustainable Procurement. This is explained on p.53 of the study guide. ISOs are a popular exam topic, so ensure you know these four mentioned here before the exam
NEW QUESTION 41
Portobello is an Italian manufacturing company that produces canned tomato sauces. It imports a lot of its tomatoes from Latin America as there isn't the capacity to grow that many tomatoes in Italy. One of the major risks posing Portobello is that the tomatoes must be transported via cargo ship, and there is a risk that the ship may sink, or be delayed by bad weather. Portobello has taken out insurance to cover the cost of the tomatoes should this happen. What technique has Portobello used?
- A. treat
- B. terminate
- C. transfer
- D. tolerate
Answer: C
Explanation:
Explanation
The risk has been transferred to the insurance company. This question is based on the 4Ts from p.32- this is a popular exam topic, for both the multiple choice questions and the drag and drop
NEW QUESTION 42
Which of the following FIDIC Contracts would be suitable for a contract for offshore wind projects?
- A. Minor Works Contract
- B. Measured Term Contract
- C. Construction Contract
- D. Yellow Book Contract
Answer: D
Explanation:
Explanation
This is the Yellow Book. This is briefly mentioned on p.74 and can often be missed by students. There is a question in the exam about which type of FIDIC contract can be used for construction projects and this is NOT explained in the study guide - so here is a link to FIDIC so you can revise this before the exam:
https://fidic.org/sites/default/files/FIDIC_Suite_of_Contracts_0.pdf
NEW QUESTION 43
Which of the following statements about binomial distribution are true? Select THREE
- A. they are based on continuous events
- B. there are only two outcomes
- C. each trial has the same probability
- D. there is only one outcome per event
- E. the events of one trial will impact on the next one
Answer: B,C,D
Explanation:
Explanation
1, 3 and 4 are the correct options. Binomial is based on discreate events not continuous and it assumes the events of each trial are independent of one another. This YouTube video explains it all perfectly using the chance that an ice-cream cone is broken. It's a nice memorable example to help you remember what binomial distribution is and how it works: https://www.youtube.com/watch?v=3EZbX2ftCUk - it's a very memorable example and really helped me. You can also see more info in the cips textbook p.131
NEW QUESTION 44
Juan is a Spanish business owner who imports several parts from Japan. Juan's business operates in Euros and the parts that he buys from Japan can often take a long time to arrive, this means that the price of the items sometimes fluctuates due to the exchange rate. Which of the following would be the best option for Juan?
- A. have the supplier match geographical profiles of customer sales with supplier purchases
- B. terminate the contract with the foreign supplier
- C. have the supplier quote in Juan's currency
- D. have the supplier quote in their own currency
Answer: C
Explanation:
Explanation
quoting in Juan's currency would reduce the risk to Juan - the risk of currency exchange rate fluctuations would then sit with the supplier. See p.23 for more information on currency risks.
NEW QUESTION 45
A black swan event is what type of occurrence?
- A. an occurrence with a negative outcome
- B. an unusual occurrence
- C. a common occurrence
- D. an occurrence with a good outcome
Answer: B
Explanation:
Explanation
A black swan event is an unusual occurrence - something that is rare. See p.124
NEW QUESTION 46
Which of the following is an example of hedging?
- A. audits
- B. insurance
- C. dual-sourcing
- D. risk assessments
Answer: B
Explanation:
Explanation
Insurance is a form of hedging. Hedging is using a financial instrument to offset the potential risk of an adverse loss (p.93) none of the other options mentioned are financial instruments.
NEW QUESTION 47
Which of the following form part of the Stakeholder Salience Model? Select TWO
- A. legitimacy
- B. interest
- C. attitude
- D. level
- E. power
Answer: E
Explanation:
Explanation
Power and Legitimacy are part of the Stakeholder Salience Model - the third characteristic is Urgency. See p.
138
NEW QUESTION 48
Which of the following will you put into box 6?
- A. intellectual property
- B. strategic
- C. operational
- D. environment
Answer: C
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION 49
Which of the following will you put into box 6?
- A. Conformance Specification
- B. NDA
- C. Force Majeure
- D. service credits
Answer: A
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION 50
Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?
- A. value at risk
- B. Poisson Distribution
- C. normal distribution
- D. binomial distribution
Answer: B
Explanation:
Explanation
Poisson Distribution would be used for this. Poisson Distribution predicts the likelihood of an event occurring.
This is explained on p. 129 of the study guide but this YouTube video explains it a lot better:
https://www.youtube.com/watch?v=zA7fp2s7FlM
NEW QUESTION 51
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Tested Material Used To L5M2: https://torrentvce.pass4guide.com/L5M2-dumps-questions.html