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When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?
When conducting a competitive tender, is it appropriate to use a supplier's credit rating as a criteria for pre-section?A . yes- because a low rating would have a negative impact on the company's reputationB . yes- because a low rating would indicate the supplier is financially unstableC . no- because...
Which negotiation tactic is the supplier using?
In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony. Which negotiation tactic is the supplier using?A . competitiveB . collaborativeC . compromisingD . accommodatingView AnswerAnswer: D Explanation: This is accommodating: the supplier puts the buyer's...
What should Greg do about his concerns?
Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?A . use the Return on Investment RatioB ....
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?A . that there is little demand in the marketplaceB . demand is exceeding supplyC . there is a threat of substitutionD . the marketplace is a monopolyView AnswerAnswer: B...
Which of the following is an example of intracompany trading? Select TWO
Which of the following is an example of intracompany trading? Select TWOA . a manufacturer in the UK buys raw copper from a supplier in ChileB . two companies owned by the same entity conduct businessC . two companies join together to create a new productD . two departments within...
What relationship style would be best suited?
Brooklyn Ltd is a manufacturer of windows and has a single sourcing relationship with their supplier of glass. What relationship style would be best suited?A . collaborativeB . transactionalC . adversarialD . non-criticalView AnswerAnswer: A Explanation: When single sourcing, you should aim to have a collaborative relationship with the supplier....
Which of the following should be considered when calculating ratios relating to a supplier's liquidity?
Which of the following should be considered when calculating ratios relating to a supplier's liquidity?A . inventoryB . reservesC . receivablesD . profitView AnswerAnswer: A
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?
Which of the following financial ratios would indicate a supplier's potential exposure risk to a steep rise in inflation?A . acid testB . current ratioC . gross profit marginD . gearing ratioView AnswerAnswer: D Explanation: The correct answer is 'gearing ratio'. Gearing measures how much of a company's funding is...
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?A . develop strategyB . supplier selectionC . contract awardD . asset managementView AnswerAnswer: B Explanation: At supplier selection stage, unsuitable suppliers should be removed (those...
Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the correct thing to do?
Pierre is constructing a tender for a security contract. As well as cost, he would like to ask the security companies some questions about their health and safety processes and staff qualifications. He has created several questions and weighted these so that they add up to 25. is this the...
