CIPS L4M2 Practice Exams
Last updated on Oct 23,2026- Exam Code: L4M2
- Exam Name: Defining Business Needs
- Certification Provider: CIPS
- Latest update: Oct 23,2026
CP Group places emphasis on the following business objectives:
Responsive production processes to react quickly to market changes
Collaboration and technological integration
New products launched and on sale very quickly
Which of the below business markets does CP Group belong to?
- A . Construction
- B . Financial
- C . Retail
- D . Agriculture
CP Group places emphasis on the following business objectives:
Responsive production processes to react quickly to market changes
Collaboration and technological integration
New products launched and on sale very quickly
Which of the below business markets does CP Group belong to?
- A . Construction
- B . Financial
- C . Retail
- D . Agriculture
Which of the following is the process for improving the value of a new product or service?
- A . Value engineering
- B . Porter’s Five Forces
- C . Planning and design
- D . Value analysis
A
Explanation:
Value Engineering (VE) is concerned with new products. It is applied during product development.
The focus is on reducing costs, improving function or both, by way of teamwork-based product evaluation and analysis. This takes place before any capital is invested in tooling, plant or equipment.
This is very significant, because according to many reports, up to 80% of a product’s costs (throughout the rest of its life-cycle), are locked in at the design development stage. This is under-standable when you consider the design of any product determines many factors, such as tooling, plant and equipment, labour and skills, training costs, materials, shipping, installation, maintenance, as well as decommissioning and recycle costs.
Reference: CIPS study guide page 171-172
LO 3, AC 3.4
John has been asked to develop a business case before obtaining approval to purchase a large piece of capital equipment for a glove manufacturing unit.
Is this the right thing to do?
- A . Yes, because this will help compare alternatives and options
- B . No, because risk consideration is not John’s responsibility
- C . Yes, because this will assist the purchase order
- D . No, because this can lead to business-focused thinking
A
Explanation:
A business case allows for the evaluation of alternatives and ensures alignment with strategic goals. It also assesses risks, benefits, and financial impact, providing a comprehensive basis for decision-making.
Reference: CIPS Level 4, Capital Expenditure and Business Case Development.
Waste disposal costs
- A . 1 and 2
- B . 2 and 3
- C . 3 and 4
- D . 1 and 4
Waste disposal costs
- A . 1 and 2
- B . 2 and 3
- C . 3 and 4
- D . 1 and 4
Waste disposal costs
- A . 1 and 2
- B . 2 and 3
- C . 3 and 4
- D . 1 and 4
It could be argued that wherever possible, specifications should be more output and outcome focused.
Why is this?
- A . So that they can be amended easily after contract award
- B . To allow as many suppliers as possible to respond
- C . To reduce the number of options available
- D . So that a specific branded product is provided
What would provide the best method to ensure a car manufacturer can make adjustments to vehicle production to meet future market demands, such as the inclusion of an additional battery to make a hybrid model?
- A . Correct product specification in place to allow variations
- B . Investment in innovation to predict future trends
- C . Investment in versatile robotics to meet changing demand
- D . Adequate labour contracts in place to meet changing demand