CIPS Level 2 – Certificate in Procurement and Supply

Operations

Stakeholders Relationships
[L2M3]

Sample Exam Questions (Objective Response)

The correct answer will be listed below each question

L2M3 Sample Questions V4 Sept 2020

 Q1. Which of the following are considered ‘internal’ stakeholders to an organisation?

a. Customers
b. Employees
c. The Government
d. Pressure groups

LO: 1
AC: 1
Correct answer: B

Q2. Which of the following internal stakeholder groups is involved when high capital equipment is
required?

a. Production, marketing agency and sales

b. Administration, managing director and customer
c. Local community, finance, marketing
d. Finance, production, senior management, design and production

LO: 1
AC: 1.2
Correct answer: D

Q3. Drag and drop the correct option into the blank space.

is a market dominated by a few large competing suppliers.

Oligopoly
Monopoly
Duopoly
Oligopsony

LO: 2
AC: 2.3
Correct answer: Oligopoly

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q4. The cross over point on the demand and supply curve where supply equals demand is known as …

a. interference price
b. equilibrium price
c. fair price
d. firm price

LO: 2
AC: 2.2
Correct answer: B

Q5. The primary sector of the economy includes …

a. forestry, mining and manufacturing

b. training, consultancy and operations
c. extractive industries and mechanics
d. forestry, mining and agriculture

LO: 2
AC: 2.1
Correct answer: D

Q6. Drag and drop the correct option into the blank space.

is a negotiation conflict handling style described as ‘the use of bargaining with each party trading
concessions and gains’.

Compromising
Determining
Accommodating
Synchronising

LO: 3
AC: 3.2
Correct answer: Compromising

Q7. Group cohesiveness is a key method to achieve …

a. effective team working

b. supplier control
c. on time supply
d. quality

LO: 3
AC: 3.4
Correct answer: A

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q8. Giving a contract to a business which has a family connection to the purchaser would result in …

a. achieving stakeholder buy-in

b. a conflict of interest
c. a quick negotiation
d. a long term agreement

LO: 4
AC: 4.2
Correct answer: B

Q9. Drag and drop the correct option into the blank space.

may result in conflict between stakeholders in procurement and supply.

Poor Communication
Timely Communication
Clear Direction
Cross Functional Working

LO: 4
AC: 4.2
Correct answer: Poor Communication

Q10. Customers and suppliers represent which of the following in the supply chain?

a. internal stakeholders
b. external stakeholders
c. shareholders
d. consumers

LO: 1
AC: 1.1
Correct answer: B

Q11. Elise visits a shop and buys some sweets for her grandma. Elise’s grandma enjoys eating the sweets. In
this situation, which party is the customer and which party is the consumer?

a. Elise is the customer and the consumer

b. Elise’s grandma is the customer and the consumer
c. Elise is the customer and grandma is the consumer
d. Elise is the consumer and grandma is the customer

LO: 1
AC: 1.1
Correct answer: C

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q12. Suppliers that do not have a financial interest and are not employed by an organisation are known as
which type of stakeholders?

a. Internal
b. Connected
c. External
d. Minor

LO: 1
AC: 1.3
Correct answer: C

Q13. An organisation that provides a service to its customers and consumers belongs in which sector?

a. Primary
b. Tertiary
c. Secondary
d. Third

LO: 2
AC: 2.1
Correct answer: B

Q14. A situation where there are lots of suppliers who are offering non differentiated products is an example
of which type of market structure?

a. Perfect competition
b. Imperfect competition
c. Oligopolistic competition
d. Duopolostic competition

LO: 2
AC: 2.3
Correct answer: A

Q15. Hans has written a letter to his customers, with supporting evidence stating “due to a shortage in raw
materials, I am afraid that I have to notify you of a 10% price increase starting on 1st July 2020”. What
situation has presented itself to result in the letter written by Hans?

a. Demand exceeds supply

b. Supply has exceeds demand
c. Supply and demand are equal
d. The supplier wants more profit

LO: 2
AC: 2.2
Correct answer: A

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q16. Porter’s 5 Forces model is an aid to understand what?

a. Product categorisation
b. Supplier relationships
c. Stakeholder management
d. Competitive influences

LO: 2
AC: 2.3
Correct answer: D

Q17. Which of the following completes the team development model: Forming, Storming, Norming …

a. Persuading
b. Performing
c. Personalising
d. Pre-empting

LO: 3
AC: 3.4
Correct answer: B

Q18. Select the correct answer from the drop down box.

If the price is set too high for a product/service, that buyers are unwilling to pay, there will be excess
in the market.

demand
supply
elasticity
competition

LO: 2
AC: 2.2
Correct answer: B

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question
Q19. A negotiation style which has a high concern for the supplier’s needs but a low consideration for the
buyer’s needs is …

a. Avoiding
b. Altercating
c. Accommodating
d. Abandoning

LO: 3
AC: 3.2
Correct answer: C

Q20. A stakeholder who has high power but low interest should receive what treatment?

a. Keep informed
b. Manage closely
c. Monitor
d. Keep satisfied

LO: 3
AC: 3.3
Correct answer: D

Learning outcome (LO) Assessment criteria (AC) The correct answer is listed below each question