Practice Free CIPS L5M5 Exam Questions Online, L5M5 Free Demo

Question 1 Selectable Answer

Freedom of association is a protected right under the ILO convention.
What does this allow workers to do?

A. have a second job
B. have work-life balance
C. join a union
D. avoid slavery

Answer:
Explanation:
Freedom of Association is the right to join a union or workers group. P.179

Question 2 Selectable Answer

Vincent is a Procurement Manager based at a manufacturing organisation in France. His company are considering signing up to the EU's EMAS system (Eco-Management and Audit Scheme).
Which of the following are advantages of doing this? Select THREE

A. it focuses the organisation on improving environmental performance
B. it will increase profits
C. it allows the organisation to prove it complies with environmental legislation
D. it will benefit the company's reputation
E. there is no cost to set up

Answer:
Explanation:
1 3 and 4 are correct. EMAS will not increase profits and there is usually a set-up cost involved. See p.211 for more information on this. This bit of the study guide is quite interesting, it's worth reading up on EMAS and ISO140001 as it may be useful to your job as well as exams.

Question 3 Selectable Answer

Samir is the Project Manager of a large construction project. Due to the complexity of the build, the main contractor has employed further specialist companies to provide electrical wiring and fire doors.
What is the disadvantage of using subcontractors for this work?

A. increased costs
B. lower quality of work
C. less control
D. compliance with the law

Answer:
Explanation:
One major downside to using subcontractors is the loss of control. This is because the main contractor is responsible for the performance of the subcontractor- Samir has lost this control. See p.110 for more on subcontracting.

Question 4 Selectable Answer

Ruby is a Contracts Manager at ACE Ltd and manages a contract with Spades Ltd which provides raw materials to ACE. She has found a serious issue in Spade's conduct.
Which TWO documents should Ruby complete?

A. KPIs and Root Cause Analysis
B. Root Cause Analysis and Corrective Action Plan
C. Corrective Action Plan and SWOT Analysis
D. SWOT Analysis and KPIs

Answer:
Explanation:
Ruby should complete a Root Cause Analysis and Corrective Action Plan. This is from p.162 of the study guide. KPIs should already have been drawn up at the start of the contract, and an issue in conduct doesn't necessarily mean the supplier isn't hitting their KPIs. A SWOT Analysis isn't appropriate in this situation.

Question 5 Selectable Answer

1.The unethical practice of using information that is not publicly available to trade on the stock market is commonly known as what?

A. bribery
B. kickback
C. insider trading
D. greasing the wheels

Answer:
Explanation:
This is Insider Trading- the definition is on p.2

Question 6 Selectable Answer

Which of the following statements is TRUE about the adjudication form of dispute resolution? Select TWO

A. it is an informal process
B. it is quicker than going through the courts
C. a decision must be made within 28 days
D. the decision cannot be legally binding

Answer:
Explanation:
adjudication is quicker than going through the courts and a decision is made within 28 days. These are the true statements. Decisions can be legally binding and it's a fairly formal process. There's a full table of dispute resolutions on p.169. It’s pretty much exactly what you saw at Level 4 but worth revising as there are questions about this in the exam.

Question 7 Selectable Answer

Which of the following tools allows you to asses internal factors or drivers?

A. SWOT
B. STEEPLED
C. GDP
D. ABC Analysis

Answer:
Explanation:
SWOT assesses internal factors. STEEPLED assesses external factors. GDP= Gross Domestic Product and ABC Analysis is a supplier analysis tool.

Question 8 Selectable Answer

Charlie is 13 years old and sometimes helps his parents in the corner shop that they run. He helps out stocking shelves at weekends. Charlie attends school and completes his homework during weekdays. Is this an example of Child Labour?

A. yes- any work done by a person under the age of 16 is considered child labour
B. yes- Charlie should report his parents to the police
C. no- Charlie is old enough to not be considered a child
D. no- Child Labour doesn't apply to helping a family business

Answer:
Explanation:
4 is correct. Child Labour laws do not prevent a kid helping with a family business, providing that they attend school and the work doesn't harm them mentally, physically or socially. This is from p.182 of the study guide

Question 9 Selectable Answer

Nicolas is the Head of Procurement at Penny Dolittle Manufacturing Company. He is introducing a sustainability agenda to the company's procurement strategy.
Nicolas believes that an advantage of doing this is that it will drive innovation. Is he correct?

A. yes - reporting on sustainability can drive change and innovation
B. yes- reporting on sustainability is mandatory and always leads to innovation
C. no- reporting on sustainability will lead to an increased reputation
D. no- reporting on sustainability will increase costs

Answer:
Explanation:
1 is the correct answer. Firstly we decide if the answer is yes or no. The answer is yes so we discount options 3 and 4. Reporting on sustainability can increase innovation - this is from p.121 of the study guide. Then between options 1 and 2 - 2 is incorrect because reporting is NOT mandatory. By process of elimination 1 must therefore be the right answer

Question 10 Selectable Answer

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

A. sickness
B. redundancy
C. retirement
D. change of job
E. marriage

Answer:
Explanation:
Social Security can be claimed in sickness, loss of a job, retirement and the death of a partner. This is from the CIPS textbook p.65. They forgot to mention that it also pays out for maternity/ paternity.

Question 11 Selectable Answer

Which of the following are benefits to sustainable business practices? Select TWO

A. increased productivity and reduced waste
B. competitive advantage
C. weakened performance
D. increased spending

Answer:
Explanation:
The two benefits are increased productivity and reduced waste and competitive advantage. The other two options are potential downsides. These types of questions in the exam are pretty straight forward-just look for the logical answer. Benefits and risks of sustainable practices are explained on p.11-14

Question 12 Selectable Answer

ABC Construction is in a contract with DEF Developers to deliver the construction of 40 new houses on a new housing estate. There is a 'Payment is of the Essence clause' in the contract. They are halfway through the project and DEF Developers have failed to pay ABC Construction for the work already completed. ABC Construction have downed tools and walked off site.
Are they able to do this?

A. no- the contract has not been completed and therefore ABC must continue working
B. no- as long as payment is received at some point during the term of the contract ABC has no right to stop working
C. yes- ABC have the right to down tools as there has been a breach in contract
D. yes- it is a legal requirement to pay construction firms at regular intervals during a contract

Answer:
Explanation:
Yes- ABC can down tools as there has been a breach in contract. The 'Payment is of the Essence' clause is key- from a legal perspective is something is 'of the essence' it is fundamental to the contract and therefore failure to do it results in breach of the contract and the injured party can claim damages. You'll have come across 'time is of the essence' clauses in level 4. This is basically the same thing just with payment. P.129

Question 13 Selectable Answer

What forms of organisation form the Ethical Trading Initiative? Select THREE

A. private businesses
B. public sector businesses
C. governments
D. NGOs
E. Trade Unions

Answer:
Explanation:
Private Businesses, NGOs and Trade Unions form the ETI. P.190

Question 14 Selectable Answer

Jan is a procurement manager and is exploring the option of Low Cost Country Sourcing.
Which of these is a legitimate motive for this?

A. to exploit other countries natural resources
B. to avoid stringent restrictions in your own country
C. to get free holidays
D. to reduce operational expenses

Answer:
Explanation:
Reducing operational expenses is a common motivation for Low Cost Country Sourcing. The other three options are all unethical reasons why this would be undertaken and therefore not legitimate. P.47

Question 15 Selectable Answer

There are many different drivers of globalisation.
Which of the following would be considered a cost driver?

A. improvements in transport technology
B. to increase value for stakeholders
C. trading rules abroad less stringent
D. opportunity to build economies of scale

Answer:
Explanation:
Economies of scale is a cost driver for globalisation. Note option 2 isn’t correct- had this said increase profit for stakeholder (rather than value) then that might have been a cost driver, but value doesn't necessarily mean costs. See p.32 of the study guide. Note- Drivers of Globalisation can also come up as a Drag and Drop question

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