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L4M6 Practice Questions

Supplier Relationships

Last Update 10 hours ago
Total Questions : 263

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Our free CIPS Level 4 Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L4M6. Use this test to pinpoint which areas you need to focus your study on.

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Question # 31

Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.

Options:

A.  

there are no barriers to entry

B.  

suppliers are selling differentiated products

C.  

competition is at its highest level possible

D.  

competition is not strong

Discussion 0
Question # 32

Which of the following documents can be used at the selection stage of a tender process to ensure that short listed bidders meet the requirements of the buying organisation? Select TWO.

Options:

A.  

Request for Information

B.  

Request for Quotation

C.  

Pre-Qualification Questionnaire

D.  

Invitation to Tender

Discussion 0
Question # 33

You work at XYZ manufacturers and a competitor has just released a rival washing machine to the product that you make. This model is proving popular with customers. What competitive force is at play?

Options:

A.  

threat of substitution

B.  

threat of new entrant

C.  

supplier power

D.  

buyer power

Discussion 0
Question # 34

A comprehensive approach to managing the termination of a contractual relationship would include ...

Options:

A.  

Giving qualitative feedback only

B.  

Attacking the personalities, not the problem

C.  

Setting remedies and compensation for contractual breaches

D.  

Setting aside the value of existing work done by both parties

Discussion 0
Question # 35

Which of the following are NOT one of the four key principles of procurement in the EU?

Options:

A.  

Transparency

B.  

Value for Money

C.  

Non-Discrimination

D.  

Proportionality

Discussion 0
Question # 36

A company is relocating its manufacturing base to a low-cost country and is considering a partnership with a local supplier for its key components rather than a tender process. Although there are some concerns regarding confidentiality and component competitiveness, the procurement director is recommending a partnership strategy to the board of directors. The recommendation is based on a range of advantages including, but not limited to, gaining local market knowledge. Is this a valid recommendation?

Options:

A.  

No, because confidentiality risk will be higher in a partnership

B.  

Yes, as intellectual property costs will be lower in a partnership

C.  

No, local market knowledge is guaranteed in a tender process

D.  

Yes, as investment costs can be shared in a partnership

Discussion 0
Question # 37

Kyle Grant is a procurement director at ATSS Ltd and has introduced a new policy within the procurement function. The policy requires the procurement function to obtain quotations from multiple suppliers if a contract is worth over £10,000. What is the primary aim of this policy?

Options:

A.  

To deliver an agile process

B.  

To ensure value for money is achieved

C.  

To allow procurement to select the lowest price

D.  

To enable a reduction in competition

Discussion 0
Question # 38

A hospital located in a remote area experiences difficulties in attracting staff and regularly uses a staffing agency. Human resourcing is critical due to patient safety risks. The agency has been categorised as a strategic supplier. Which sourcing relationship should be adopted?

Options:

A.  

Transactional sourcing

B.  

Partnership sourcing

C.  

Competitive sourcing

D.  

Tactical sourcing

Discussion 0
Question # 39

A university based in Europe has an objective to increase the number of students coming from the United States of America (USA). The university appoints a consultant with specialist knowledge of the USA market and has issued them with a performance-based specification. Which of the following is a characteristic of a performance specification?

Options:

A.  

It provides details of how the services must be carried out

B.  

It encourages innovation from the supplier

C.  

It enables the buyer to detail technical information

D.  

It ensures the supplier must conform with the specification

Discussion 0
Question # 40

In an oliogopy market, what would a regulator do?

Options:

A.  

prevent price fixing and collusion

B.  

stop the market becoming a monopoly

C.  

ensure value for money for buyers

D.  

ensure health and safety standards

Discussion 0
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