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CIPS L4M6 Exam (page: 3)
CIPS Supplier Relationships
Updated on: 25-Dec-2025

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L4M6 PDF 226 Questions

An amicable style approach to ending a buyer-supplier relationship would be most appropriate in which of the following circumstances?

  1. 1 and 2
  2. 1 and 3
  3. 3 and 4
  4. 1 and 4

Answer(s): A

Explanation:

An amicable approach is critical when alternative suppliers are limited or when ongoing collaboration is required during the termination period. Maintaining positive relations ensures smooth operations and protects reputations in the marketplace.



When a large organization partners with a small supplier to develop new technology, it is necessary for regular communication. Is this statement true?

  1. No, because partnerships do not require regular communication during development of new technology
  2. Yes, because partnerships require regular communication to succeed in meeting mutual objectives
  3. Yes, because a small supplier must be told what to do and when, because they have fewer employees
  4. No, because regular communication will stop a small supplier from doing their work

Answer(s): B

Explanation:

Effective communication is essential in partnerships to ensure alignment on objectives, progress updates, and issue resolution. Regular communication builds trust and fosters collaboration, leading to successful outcomes.



In the STEEPLED framework, which of the following is an economic factor?

  1. Unemployment rates
  2. Demographics
  3. Supply chain labor standards
  4. Election results

Answer(s): A

Explanation:

Economic factors such as unemployment rates affect labor availability, wages, and consumer purchasing power, directly impacting business operations and supply chains.



Which one of the following would constitute a succession issue when terminating a relationship?

  1. Processing penalties
  2. Deletion of old specifications
  3. Continuity of supplies
  4. Payment of old invoices

Answer(s): C

Explanation:

Ensuring continuity of supplies is critical during termination to avoid disruptions. Succession issues focus on maintaining essential operations while transitioning to new suppliers or arrangements.



Price fluctuations can affect profitability. Is this statement correct?

  1. Yes, if the product's costs increase and the price does not
  2. No, only decisions made by the chief executive affect the price
  3. No, price is not related to profitability
  4. Yes, as sales may drop if the product is price inelastic

Answer(s): A

Explanation:

Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost-price relationships is key to managing profitability in procurement.



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Marial Manyang 7/26/2023 10:13:00 AM

please provide me with these dumps questions. thanks
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