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CIPS Supplier Relationships Sample Questions (Q89-Q94):

NEW QUESTION # 89
A restricted market is a market where there are only a small number of capable and competent suppliers. Which of the following is not a reason for a marketplace to be restricted?

A. The product is easy to source elsewhere
B. Low levels of profitability
C. Strong governmental regulation
D. High barriers to entry

Answer: A

Explanation:
The correct answer is 'The product is easy to source elsewhere'. The other three are given as reasons a marketplace might be restricted on p.138. Other reasons also include; brand loyalty, difficult access to distribution channels, and companies colluding.

NEW QUESTION # 90
Polly Manufacturing is a company which manufactures bicycle parts. It has several factories around the country and is one of the leading suppliers of wheels, bells and pedals. Which of the following is Polly Manufacturing likely to outsource? Select TWO options.

A. Cleaning
B. Manufacturing of all bicycle parts
C. Facilities Management
D. Manufacturing of bells only

Answer: A,C

Explanation:
They could outsource cleaning and facilities management. These are auxiliary services. The manufacturing of bike parts is their 'core' business so they should retain this in-house

NEW QUESTION # 91
The use of technical jargon can result in what?

A. Increased price
B. Misunderstanding
C. Lack of transparency
D. Lack of trust

Answer: B

Explanation:
Using technical jargon can lead to misunderstandings if not all parties understand the jargon. See p. 158 on communication issues

NEW QUESTION # 92
According to Michael Porter, what is procurement?

A. a primary activity which provides a source of competitive activity
B. a support activity which provides a source of competitive advantage
C. a secondary activity which provides value for money
D. a primary activity which provides value for money

Answer: B

Explanation:
This question refers to Porter's Value Chain (p.35). There's a couple of questions on this in the exam so try to learn it. Procurement is a 'support activity' on this matrix along with firm infrastructure, HR and technology development

NEW QUESTION # 93
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

A. No- partnerships have end dates as they are contractual relationships
B. Yes- partnerships do not have end dates because there is never a contract involved
C. No- partnerships should have end dates so both parties have a way out if things don't work out
D. Yes-partnerships do not have end dates because they involve significant investment

Answer: D

Explanation:
The correct answer is 'Yes-partnerships do not have end dates because they involve significant investment'. This is explained on p.126. Partnerships can involve contracts - so the other 'yes' answer is incorrect.

NEW QUESTION # 94
......

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