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CIPS Supplier Relationships Sample Questions (Q13-Q18):
NEW QUESTION # 13
Which of the following relationship types are characterised by low levels of trust? Select TWO options
Answer: D,E
Explanation:
Adversarial and Arm's Length relationships have low levels of trust. Single Source, Partnership and Outsourcing require high level of trust. See p.5 for the Supplier Relationship Spectrum
NEW QUESTION # 14
Supplier development should be undertaken with all suppliers that a buyer uses. Is this statement TRUE?
Answer: B
Explanation:
Supplier development is time-consuming and resource-intensive so should only be done with strategic suppliers. P.14
NEW QUESTION # 15
When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?
Answer: A
Explanation:
Effective communication is essential in partnerships to ensure alignment on objectives, progress updates, and issue resolution. Regular communication builds trust and fosters collaboration, leading to successful outcomes.
NEW QUESTION # 16
Which of the following is characteristic of an adversarial relationship?
Answer: A
Explanation:
In an adversarial relationship "the outcome of the deal... is more important than maintaining the relationship over a long-term period" p.7. They can be characterised by poor communication and can be used for one-off purchases but be careful for words in answers such as 'only' and 'always', as these can be misleading; adversarial relationships aren't always for one-off purchases, and communication isn't always poor. The other answer is incorrect (price is more important) because it doesn't describe the relationship, which is what the question asked.
NEW QUESTION # 17
Which of the following are typical examples of partnering between companies? Select the TWO that apply.
Answer: D,E
Explanation:
Comprehensive and Detailed Explanation:
Joint venturesandstrategic alliancesare common forms of partnerships between companies:
* Joint Venture:A business arrangement where two or more parties agree to pool their resources for a specific task, creating a new entity.
* Strategic Alliance:An agreement between companies to pursue objectives while remaining independent organizations.
"Sole trader," "limited company," and "public limited company" refer to business structures, not partnership arrangements.
Reference:
CIPS L4M6 Study Guide
NEW QUESTION # 18
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