Free Practice CIPS L5M6 Exam Questions 2025

Stay ahead with 100% Free CORE Level 5 Advanced Contract & Financial Management L5M6 Dumps Practice Questions

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Total 122 Questions | Updated On: Jun 04, 2025

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Question 1

Which of the following will you put into box 4?

A : Threat of New Entrants - Low

B : Threat of Substitutes - Low

C : Bargaining Power of Buyer- Low

D : Competitive Rivalry- High

Answer: B

Question 2

What is contract leakage?

A : when spend with a supplier is more than was stated in the contract

B : when spend with a supplier is less than was forecast

C : the gap between proposed KPI levels and those actually achieved by the supplier over the course of a contract

D : the gap between benefits identified in the pre-award stage of the contract and those actually achieved

Answer: D

Question 3

In order for Category Management to be a success, it is important to have business commitment and stakeholder buy-in. Is this TRUE?

A : Yes- if the organisation is to realise the benefits of Category Management, it must be fully endorsed and supported by top management

B : Yes- Category Management is a tactical approach to sourcing and therefore requires cross-functional teamworking to succeed

C : No- Categories can work independently of each other and therefore do not require stake-holder buy-in.

D : No- business commitment is only required for high spend categories

Answer: A

Question 4

What is the purpose of a Category Board?

A : to select the Category Manager

B : to approve spending over a certain amount

C : to develop and implement a category strategy

D : to mitigate all risks

Answer: C

Question 5

On the BCG Matrix, what is a cash cow?

A : high market share, high market growth

B : high market share, low growth

C : low market share, low growth

D : low market share, high growth

Answer: B

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Total 122 Questions | Updated On: Jun 04, 2025

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