CIPS Updated L4M6 Exam Questions and Answers by asa

Comprehensive and Detailed Explanation:

Statement B:A strategic alliance is an agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations. It is typically managed jointly by the partners to achieve mutual benefits without forming a new legal entity.Wikipedia

Statement C:In a joint venture, two or more parties create a new, separate legal entity by contributing equity, and they share in the revenues, expenses, and control of the enterprise. This new company is formed to undertake specific business activities.

Explanation

The correct answer is ‘reduced product life-cycles’. In this example the reason for entering a partnership is to be able to produce new models of phones more quickly- this is likely because consumers are wanting to change mobile phones more often than they did in the past, so in order to keep up withdemand, Phone Maker Incorporated need to produce more phones, more quickly. Drivers of Partnership Sourcing is a key topic in the exam – you can revise these by looking at p.127 in the Study Guide

Explanation

The correct answer is ‘Yes- joint innovation projects are often a strong motivation for entering into a partnership’. The other options are simply not true statements. A lot of the questions on the ‘Partnerships’ chapters of the book are common-sense questions like this. It involves reading the QUESTION NO: and using logic, rather that relying on your knowledge of procurement. If you found this QUESTION NO: easy – that’s a good sign for the exam.

Value-added benefits are additional services offered by suppliers that enhance the buyer’s operations without significant additional cost. These typically include:

Free training (A) – improves buyer staff skills.

Customer service hotlines (C) – improves responsiveness and support.

Expert consulting services (D) – provides specialist knowledge.

Options B, E, and F are operational necessities, not “value-added extras.”