CIPS L5M5 Exam Questions (Updated 2026) 100% Real Question Answers [Q31-Q45]

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CIPS L5M5 Exam Questions (Updated 2026) 100% Real Question Answers

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NEW QUESTION 31
A discrimination claim has been filed against ASDA Stores Ltd, a leading UK retailer. The claimant alleges discrimination based on skin color and religion, violating the Equality Act 2010. If the claim is successful, what is the maximum compensation award?

90 days’ pay per employee

£10,000 only

£20,000 per worker

No limit

NEW QUESTION 32
A homeowner planning to purchase a new air conditioner notices an energy rating label on each model. This rating scheme provides details on the unit’s energy efficiency, cooling capacity, and environmental impact. How does this information assist the buyer in making a decision?

It ensures that all air conditioners have the same level of performance

It provides clear information on energy efficiency and expected electricity consumption

It guarantees that the air conditioner will last for a specific number of years

It ensures that the most expensive air conditioner is always the best choice

NEW QUESTION 33
Peacock Clothing Manufacturing has a superior IT system compared to competitors. What form of competitive advantage is this?

Culture

Processes

Intellectual property (IP)

People

NEW QUESTION 34
A manufacturing company experienced frequent breakdowns of a critical machine due to improper maintenance. To resolve this, management is investigating the root cause and implementing measures to prevent future occurrences. What type of plan is the management prioritizing?

Corrective Action Plan

Preventative Action Plan

Root Cause

Risk mitigation plan

NEW QUESTION 35
Forced labor, including all forms of modern slavery, remains a significant issue affecting many supply chains. Procurement professionals and suppliers must collaborate to effectively eliminate forced labor. Which of the following strategies can procurement professionals use to address forced labor practices?
1. Boycotting the goods produced from modern slavery
2. Inclusion of anti-slavery and human trafficking clauses in contracts
3. Training for employees and suppliers to raise awareness of slavery issues
4. Treat all women and men fairly at work

1 and 2

2 and 3

4 and 1

2 and 4

NEW QUESTION 36
Jan is a procurement manager exploring Low-Cost Country Sourcing. Which of the following is a legitimate motive for this?

To exploit other countries’ natural resources

To avoid stringent restrictions in your own country

To get free holidays

To reduce operational expenses

NEW QUESTION 37
The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?

Yes- reports must be filed regularly on process

Yes – it is voluntary to join, but it is legally binding once signed up

No- it is voluntary to join and not legally binding

No- it is not legally binding and there is no requirement to publish any progress reports

NEW QUESTION 38
A small tech startup (Startup A) is negotiating a partnership with a large corporation (Corp B). Corp B proposes to cover 80% of the development costs but requires Startup A to assume 90% of the risk in the event of product failure.
What is the most significant issue with Corp B’s proposal in this negotiation?

Corp B is offering a higher percentage of funding than Startup A

Startup A will have limited control over the development process

The risk is disproportionately shared, placing an unfair burden on Startup A

The partnership will likely lead to profit-sharing conflicts later

NEW QUESTION 39
Expert Determination is a form of contract dispute resolution which is best suited to what circumstances?

High value contracts

International contracts

Technical disputes

Personality disputes

NEW QUESTION 40
A company seeks a fair-trade certification that covers its entire business operations instead of just individual products. Which organization offers certification for the entire organization rather than a single product?

Fair Trade USA

Fair for Life

Fairtrade International

Fair Trade Federation

NEW QUESTION 41
Which of the following standard operating procedures do procurement professionals use to prevent fraud within a company?

Allowing a single employee to handle all procurement transactions without oversight

Implementing a whistleblower hotline to report suspicious activities anonymously

Using verbal agreements for procurement contracts to expedite the process

Bypassing formal bidding processes for convenience in purchasing decisions

NEW QUESTION 42
Ruben is buying new machinery for his factory. He chooses a more expensive option after considering ESG factors. Why might this be?

The higher-priced item will be of better quality

The higher-priced item is from a more reputable company

In terms of life-cycle costing, the more expensive item may be cheaper in the long term

The more expensive item will be more environmentally friendly

NEW QUESTION 43
Roogy Ltd, a UK SME, considers implementing its own environmental standard instead of a global one. What is the advantage of this?

It will be more easily understood by customers

It will be cheaper

It ensures compliance with local regulations

This is a form of greenwashing

NEW QUESTION 44
Scenario:
Apor is an online retailer of clothing and shoes. It sells four different fashion product lines:
Product 1: Apor has achieved competitive advantage on this product line by producing clothing cheaply. This has been achieved through investment in advanced manufacturing technology, which allows items to be made more cheaply than competitors.
Product 2: Apor is marketing to a younger customer segment for this product and has developed unique features that appeal to teenagers in particular.
Product 3: This product is a specialist type of shoe only purchased by professional dancers. Apor’s strategy is to appeal to this small and specific customer segment, and it achieves advantage through low cost of manufacture. However, demand has been affected recently due to import duty and tax changes.
Product 4: The marketing slogan for this product is “Greener Clothing for the Planet”. Although slightly more expensive than other ranges, Apor achieves advantage through the product’s eco-friendly features, appealing to a smaller, specific segment.
Task:
For each product, match the correct Macro Environment Driver and the correct Source of Competitive Advantage.

NEW QUESTION 45
According to the International Institute for Sustainable Development, which of the following are part of the 6 key components of a CSR Plan? Select THREE

Introduction

Financial analysis

Implementation plan and activities

CSR commitment to stakeholder engagement

Verification and evaluation of results