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CIPS L4M6 Exam With Confidence Using Practice Dumps

Exam Code:
L4M6
Exam Name:
Supplier Relationships
Vendor:
Questions:
243
Last Updated:
Nov 1, 2025
Exam Status:
Stable
CIPS L4M6

L4M6: CIPS Level 4 Diploma in Procurement and Supply Exam 2025 Study Guide Pdf and Test Engine

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Supplier Relationships Questions and Answers

Question 1

A 'restricted market' is likely to arise when the entry costs for new suppliers are prohibitively high, and levels of market profitability amongst existing suppliers may be relatively low. Is this a true statement?

Options:

A.

No, entry costs are low in all markets due to technology, and this is increasing profitability significantly

B.

Yes, these markets usually have only a small number of competent and capable suppliers

C.

No, usually these markets have a regular flow of new suppliers entering them

D.

Yes, new entrants are low; however, due to high competition, profit levels are always very high

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Question 2

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

Question 3

Which of the following are features of a partnership sourcing relationship compared with a traditional adversarial relationship? Select TWO that apply.

Options:

A.

Emphasis on quality with zero defects

B.

Emphasis on the lowest price

C.

Emphasis on inspection of incoming supplies

D.

Emphasis on short-term relationship

E.

Emphasis on long-term relationship