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CIPS L4M6 Practice Test Questions Answers

Exam Code: L4M6 (Updated 263 Q&As with Explanation)
Exam Name: Supplier Relationships
Last Update: 02-Mar-2026
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Questions Include:

  • Single Choice: 213 Q&A's
  • Multiple Choice: 50 Q&A's

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    L4M6 Questions and Answers

    Question # 1

    In a monopoly market, which of the following statements is true?

    A.

    bargaining power of suppliers is strong

    B.

    bargaining power of buyers is strong

    C.

    There is strong rivalry

    D.

    There is a threat of new entrants

    Question # 2

    A company's analysis shows that some of their products from a supplier fall into the 'strategic' segment of the supply positioning grid. They are meeting with the supplier with the intention that they enter into a partnership. The supplier views the company as 'core' to their business. Which one of the following factors would be most important in determining that a partnership agreement would be good for both companies?

    A.

    They have a high spend with the supplier

    B.

    They have a low spend with the supplier

    C.

    Their products are technically simple

    D.

    There are many suppliers in the market

    Question # 3

    Which of the following relationship types are characterised by low levels of trust? Select TWO options

    A.

    Adversarial(Correct)

    B.

    Arm's Length

    C.

    Outsourced

    D.

    Single- Sourced

    E.

    Partnership

    Question # 4

    Fashion buyer Kamal Sumai is working closely with a key overseas supplier and is monitoring and forecasting cost volatility within the fabric market. Kamal has decided it is the right time to raise a purchase order with his supplier, for a greater quantity of fabric than he currently needs. Kamal is attempting to avoid an imminent pricing increase. What is this tactic known as?

    A.

    Hedging buying

    B.

    Forward buying

    C.

    Derivative buying

    D.

    Spot buying

    Question # 5

    Phone Maker Incorporated is a manufacturer of mobile phones. It is considering investing in a partnership with its supplier of batteries and circuit boards as it wishes to produce new models of its phone more regularly. What is the main driver for Phone Maker Incorporated?

    A.

    Cheaper costs

    B.

    Changes in the marketplace

    C.

    Better quality products

    D.

    Reduced product life-cycles

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