L4M6: Supplier Relationships

L4M6: Supplier Relationships practice questions, page 2 of 3, with answer review and explanations.

Question 6

A large construction group has a critical contract with a brick supplier. This represents high-value spend and the contract has a five-year duration. What type of commercial relationship would be the most appropriate?

  1. Partnership
  2. Transactional
  3. Closer Tactical
  4. Outsourcing

Question 7

Which of the following are advantages for the buyer, of early supplier involvement with the buyer’s product development team? 1. It ensures that the supplier takes leadership of the entire process 2. It ensures that the supplier understands the process timescales 3. It ensures that the buyer’s team gains dependency on the supplier 4. It ensures that the buyer’s team is aware of the supplier’s capabilities

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

Question 8

A software developer is seeking to develop a new fitness trends app. They are looking to create a contract with a fitness expert to give advice on the type of changing fitness trends. What agreement should the app developer aim to achieve?

  1. Traditional contracting relationship
  2. Partnering relationship
  3. Quality-based relationship
  4. Cost-based relationship

Question 9

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

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

Question 10

Which of the following are correct statements with regards to a joint venture and with regards to a strategic alliance? (Choose two that apply.)

  1. A strategic alliance creates a new company formed between the partners
  2. A strategic alliance is managed by both partners
  3. In a joint venture, a new company is formed between the partners
  4. A joint venture is also known as vertical integration
  5. A strategic alliance is a permanent arrangement