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CIPS L4M6 Exam (page: 7)
CIPS Supplier Relationships
Updated on: 25-Dec-2025

Viewing Page 7 of 37
L4M6 PDF 226 Questions

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?

  1. Employee rights
  2. Confidentiality
  3. Finance
  4. Security

Answer(s): B

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.



When using competitive forces theory, suppliers are powerful in which of the following situations? Select THREE that apply.

  1. There are few substitute products
  2. The product is highly differentiated
  3. There is potential for backward integration
  4. The switching costs are high
  5. The volume purchased is not important
  6. The product is undifferentiated

Answer(s): A,B,D

Explanation:

Suppliers gain power when their products have limited substitutes, are highly differentiated, or when switching costs are high. These factors reduce buyer leverage and increase supplier influence, as described in Porter's Five Forces model.



Which of the following are advantages of partnering?

  1. Supply chain consolidation
  2. Continual improvement
  3. Hard to displace
  4. Prioritization of transactions

Answer(s): A,B

Explanation:

Partnering supports supply chain consolidation and continual improvement by fostering collaboration and shared objectives. These benefits align with the strategic goals of building resilient and efficient supply chains.



Which of the following are the stages of team development?

  1. Starting, forming, benchmarking, performing
  2. Forming, storming, norming, performing
  3. Beginning, working, reviewing, performing
  4. Introducing, forming, managing, performing

Answer(s): B

Explanation:

The stages of team development as defined by Tuckman include forming, storming, norming, and performing. These stages reflect how teams evolve and mature through collaboration and problem- solving.



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?

  1. Adversarial
  2. Closer tactical
  3. Outsourcing
  4. Partnership

Answer(s): A

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.



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

please provide me with these dumps questions. thanks
Anonymous