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CIPS Supplier Relationships Sample Questions (Q31-Q36):
NEW QUESTION # 31
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
- A. there are no barriers to entry
- B. competition is not strong
- C. competition is at its highest level possible
- D. suppliers are selling differentiated products
Answer: A,C
Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40
NEW QUESTION # 32
Robbie is a procurement manager at a public sector organisation. He is running a tender which is worth £2m and so will advertise this on OJEU. His manager has reminded Robbie to include CPV codes on the tender. What purpose would this serve?
- A. To ensure suppliers know the deadline for tender submission
- B. To ensure suppliers can find the opportunity
- C. To ensure more suppliers bid for the tender
- D. To ensure only qualified suppliers bid for the tender
Answer: B
Explanation:
CPV codes help suppliers find opportunities they can bid for. CPV codes are a numerical classification for products e.g. Strawberry Jam is 15332296 and when they are included on a Tender, any supplier who is registered with that same CPV code will get a notification that the tender is live. CPV codes are discussed on p.72 but not in much detail- so don't worry if you don't know much about them. So long as you know the above, you'll be fine.
NEW QUESTION # 33
Tim manages the procurement department at a large retailer. He wants to ensure that his team are achieving value for money in their procurement activities. Which of the following should Tim set up?
- A. Audit
- B. Framework
- C. Contract
- D. ITT
Answer: A
Explanation:
Tim should do an audit. P.71 of the textbook says "to ensure that a procurement department is achieving value for money, an audit should be undertaken"
NEW QUESTION # 34
The use of technical jargon can result in what?
- A. Increased price
- B. Lack of trust
- C. Lack of transparency
- D. Misunderstanding
Answer: D
Explanation:
Using technical jargon can lead to misunderstandings if not all parties understand the jargon. See p. 158 on communication issues
NEW QUESTION # 35
Which of the following relationship types require the most investment from the buyer?
- A. adversarial
- B. single source
- C. partnership
- D. strategic alliance
Answer: C
Explanation:
Partnerships require the most investment out of those listed. The only relationship type that requires more investment than Partnerships is Co-Destiny. See p.9 for more information on this
NEW QUESTION # 36
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