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CIPS Supplier Relationships Sample Questions (Q32-Q37):

NEW QUESTION # 32
A textile company is purchasing a new item which is low value. This item is likely never to be required again by the company and is widely available from many different suppliers. Which commercial relationship type would be most effective for the buyer to choose?

A. Partnership
B. Closer tactical
C. Adversarial
D. Outsourcing

Answer: C

Explanation:
For low-value, non-recurring items with many suppliers, an adversarial relationship focusing on competitive pricing and minimal engagement is most appropriate. Partnerships are unnecessary for such transactions.

NEW QUESTION # 33
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?

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

Answer: A

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 # 34
Red Manufacturing work with around 40 different suppliers. One of these suppliers is Blue Business. Red Manufacturing order regularly from Blue Business, and have never had any issues with their performance. The materials Blue Business supply are of low value and there are several other suppliers of these materials in the market. What type of relationship should Red Manufacturing seek to have with Blue Manufacturing?

A. adversarial
B. single-source
C. partnership
D. arms-length

Answer: D

Explanation:
The correct answer is 'arms length'. This is a tactical purchase (as it is low value) and keeping the supplier at arms-length means that Red Manufacturing could possibly exploit them to reduce their prices (think back to the Kraljic matrix and where Blue Business would likely fall). A Partnership or Single- Source relationship requires investment into the relationship, and as the products are low value and Red Manufacturing have a lot of other suppliers, they should not be investing time in developing that relationship with Blue Business. An adversarial relationship wouldn't be advantageous as it may lower the performance of the supplier. See the relationship spectrum on p.5 - this is a hot topic for the exam

NEW QUESTION # 35
A law firm is ending an agreement with a client they have represented for many years. What is the most important legal consideration to be taken before terminating?

A. Employee rights
B. Finance
C. Security
D. Confidentiality

Answer: D

Explanation:
Confidentiality is critical in professional relationships, especially for law firms, as they handle sensitive client information. Ensuring that all legal obligations to protect this information are met aligns with ethical and legal best practices.

NEW QUESTION # 36
Harry runs a hotel and has recently decided to contract an external supplier to provide the cleaning of the rooms. What is a disadvantage of doing this?

A. The supplier will not perform as well as an internal team
B. There is dependency on the supplier, which increases risk
C. This allows staff to focus on other areas
D. This will be more expensive than providing the service in house

Answer: B

Explanation:
Using an external supplier always comes with increased risk, as you become dependant upon them, and have less control over their performance (compared to an in-house team). In this example Harry will have the increased risk that the contract cleaners turn up late to their shifts, or don't do a good job. However, there is no reason to believe that the supplier will not perform as well as an internal team- we don't have enough information from the Question: for this to be true. What is true is the RISK is greater. The other answers are incorrect; the Question: doesn't indicate whether outsourcing the cleaning will be more or less expensive for Harry. Allowing staff to focus on other areas is an advantage not a disadvantage. See p.4 for more information on 'External Suppliers'

NEW QUESTION # 37
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L4M6 Sample Questions Pdf & Reliable L4M6 Exam Vce

Reliable CIPS L4M6 Exam Vce | Exam L4M6 Online

CIPS Supplier Relationships Sample Questions (Q32-Q37):

Quiz 2025 The Best CIPS L4M6 Sample Questions Pdf

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