CIPS Exam L4M6 Topic 3 Question 4 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 4
Topic #: 3

Francisco has entered a partnership with Pedro, who is a key supplier, and wants to ensure that the partnership achieves all of Francisco's goals. As well as qualitative and quantitative KPIs, what other measures could Francisco take to ensure the partnership is a success?

ADo frequent appraisals on the supplier

BConduct regular audits

CEnsure there is a damages clause in the contract

DThreaten the supplier with termination if he underperforms

Show Suggested Answer

Suggested Answer: B

The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.

by Paz at Jun 22, 2022, 10:45 AM

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