ISM LEAD practice materials Questions Answers

Exam Code:
LEAD
Exam Name:
Leadership and Transformation in Supply Management Exam
Last Update:
Jun 01,2026

165 Questions Answers Verified by Experts!


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ISM LEAD Questions for CPSM Certification Exam 2026

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Leadership and Transformation in Supply Management Exam LEAD practice questions with explanations

 

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Page: 1 / 33
Total Questions: 165

Questions & Answers PDF

• Question 1

  

  A company conducts an audit of its environmental management system (EMS) for ISO 14001 compliance. In this situation, which of the following factors is MOST likely to be of concern?

  • The EMS audit is scheduled to be conducted by an entity within the company.
  • The EMS plan's targets and goals are subjective and non-quantifiable.
  • The implementation of the EMS plan includes a continuous improvement requirement.
  • The EMS plan has been communicated internally, as well as to suppliers and customers.

  Reveal Answer Answer: B Next Question

• Question 2

  

  Jones is a highly motivated leader who exceeds all standards for excellence. However, Jones has also been criticized for micro-managing employees, taking over tasks, giving employees little feedback or direction, and cutting comers during busy periods in order to meet production goals. Jones is MOST likely which of the following types of leaders?

  • Affiliation-oriented
  • Achievement-oriented
  • Personalized power-oriented
  • Socialized power-oriented

  Reveal Answer Answer: B Next Question

• Question 3

  

  An assistant contract administrator has been promoted to a newly-created contract management position in charge of sourcing a new product line. The position will work closely with other departments. The new manager is familiar with the firm's general procedures and organization but needs to expand skills in areas related to the increased responsibilities of the new position.Which of the following will be MOST effective in this situation?

  • Exploring outside professional development opportunities
  • Concentrating on training in new technologies
  • Providing mentors to assist with orientation
  • Employing functional rotation with related departments

  Reveal Answer Answer: D Next Question

• Question 4

  

  A supply manager for JKL, Inc. has been asked to develop a risk management plan for suppliers. The supply manager has identified the sources of risk and the probability of occurrence. In order to develop a risk management process, the supply manager should NEXT

  • execute the risk management strategy
  • allocate resources to address the risk
  • develop a risk profile
  • estimate the likely impact of the risk

  Reveal Answer Answer: D Next Question

• Question 5

  

  A firm’s five-year strategic plan forecasts annual sales revenue growth primarily based on product quality improvements. The firm's chief procurement officer (CPO) wants to monitor supply management's contribution to the plan by applying business intelligence. Which of the following is the BEST way for the CPO to achieve this objective?

  • Measure the quality of the firm's primary suppliers and their degree of collaboration with the company's business units
  • Monitor supply trends and developments, and the political and economic changes that affect primary suppliers and raw materials
  • Assign supply managers by company function rather than supply category, to better focus attention on reaching the firm's objectives
  • Certify at least two new suppliers annually, to manage supply risk and to keep current suppliers focused on quality improvements

  Reveal Answer Answer: A Next Question

• Question 6

  

  Supply management can track supplier performance, send alerts on important dates and generate reports for compliance officers through which of the following?

  • Business intelligence software
  • Contract management software
  • Performance management software
  • Spend analysis software

  Reveal Answer Answer: B Next Question

• Question 7

  

  A supply management department's resources have been stretched thin, and there are few opportunities for staff growth. To improve this situation, the supply manager plans to implement an e-sourcing system, which will streamline routine procurements and allow more time for supply professionals to concentrate on value-added tasks. The supply manager wants to introduce the system in a way that will help motivate the department staff. Which of the following will MOST likely bring about this result?

  • A reduction in procurement process costs
  • A shift from a transactional to a strategic approach
  • A greater flexibility in department staffing
  • A lower total cost of ownership

  Reveal Answer Answer: B Next Question

• Question 8

  

  A highly-customized computer part needed to complete the assembly of a product would be classified as which of the following?

  • Fixed cost
  • Target cost
  • Direct cost
  • Variable cost

  Reveal Answer Answer: C Next Question

• Question 9

  

  An employee who has been competent and reliable in the past suddenly exhibits erratic behavior and makes mistakes which could have a serious impact on the department as well as the company. The department supervisor learns that the employee is trying to cope with extraordinary family challenges. Given this situation, which of the following is the BEST course of action for the supervisor to take?

  • Remind the employee of the firm's expectations and consequences of failure
  • Refer the employee to the company’s employee assistance program
  • Retrain the employee in any areas of weak performance
  • Document performance problems and begin the termination process

  Reveal Answer Answer: B Next Question

• Question 10

  

  Employee fraud or theft can MOST likely be uncovered through which of the following?

  • Risk assessment
  • Sarbanes-Oxley audit
  • Performance audit
  • Centralized procurement structure

  Reveal Answer Answer: B Next Question

Page: 1 / 33
Total Questions: 165

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