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NEW QUESTION # 209
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.
Answer: A,B
Explanation:
Trust may create value as following:
Text Description automatically generated with low confidence
LO 1, AC 1.4
NEW QUESTION # 210
It may be more difficult to buy on a credit from supplier who locates in a country with a hyperinflation? Is this assumption true?
Answer: D
Explanation:
If theinflation rate is running high, then obtaining credit as a buyer is normally more difficult or expensive as money in the future will be worth less than money today.
NEW QUESTION # 211
What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.
Answer: A,D
Explanation:
Persistent late payment of the supplier's invoices (A) and Unequal sharing of gains, risks, and costs with the supplier (B) are potential sources of conflict as they create dissatisfaction and imbalance in the relationship.
According to CIPS materials:
Late payments (A) can strain the supplier's cash flow, affecting their operational stability and leading to mistrust in the buyer.
Unequal sharing of gains, risks, and costs (B) can result in one party feeling exploited or unfairly treated, which undermines the collaborative spirit essential for long-term partnerships.
In contrast, requesting early supplier involvement, planning visits, or setting delivery dates are typically part of constructive relationship management practices and do not inherently lead to conflict.
NEW QUESTION # 212
According to Dr. Mari Sako, which of the following is potentially the weakest trust to be built?
Answer: D
Explanation:
:
Trust is the expectation that the other party will behave in a predictable and mutually acceptable way. In inter- firm relationships, the presence and absence of trust can affect the level of cost in a relationship. The existence of trust is taught to lower the transaction cost in a relationship. Dr. Mari Sako identified taxonomy of 3 types of trust in commercial relationship, which is very useful from the perspective of procurement.
Contractual trust: Trust based on the contract with TOP. This is potentially the weakest source of trust if there is nothing else to base the trust on, but it is the quickest to establish.
Competence trust: Trust based on TOP's professional qualifications or proven or certified technical capability or experience.
Goodwill trust: Trust based on knowing TOP has your interest at heart and will not behave opportunistically.
This is potentially the strongest type of trust, but it takes the longest time to build.
Otherwise, trust also has legal meaning. A trust is a legal document that can be created during a person's lifetime and survive the person's death. A trust can also be created by a will and formed after death. Charitable trusts are trusts which benefit a particular charity or the public in general.
NEW QUESTION # 213
Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.
Answer: C,D
Explanation:
Trust-destroying behaviours:
- Rumours of partnership or relationship breaking down
- Emotion-based assessment of performance
- Avoiding accountability, passing the blame to others
- General mood - resentment, distrust, frustration, etc
LO 1, AC 1.4
NEW QUESTION # 214
......
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