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L4M6 Exam Dumps : Supplier Relationships

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Supplier Relationships Questions and Answers

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Question 1

In a partnership who is responsible for decision making?

Options:

A.

The project steering committee

B.

Both the supplier and the buyer

C.

The buyer

D.

The supplier

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Question 2

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

Question 3

Within a supplier's terms and conditions, they have a 'mutual termination for convenience' clause, which requires either party to provide 30 days' notice. Before the buyer signed the agreement, a procurement colleague recommended that the buyer should request this be amended to 90 days' notice. Was this amendment the correct thing to do?

Options:

A.

Yes, as this will allow the buyer enough time to mobilize a new contract

B.

Yes, as the buyer will then be responsible for providing additional business to the supplier

C.

No, as this will be in breach of statutory contract law requirements

D.

No, as this will guarantee a hostile end to the buyer-supplier relationship

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