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CIPS Exam L4M2 Topic 3 Question 36 Discussion

Actual exam question for CIPS's L4M2 exam
Question #: 36
Topic #: 3
[All L4M2 Questions]

Which of the following events would increase the number of suppliers in a particular market?

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Suggested Answer: C

The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.


LO 3, AC 3.1

Contribute your Thoughts:

Minna
5 days ago
But what about option A, introduction of minimum wage regulations? Wouldn't that also attract more suppliers by ensuring fair wages for workers?
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Lashon
10 days ago
I agree with Jesusita. When a previously government-run industry is de-regulated, it allows more companies to enter the market, thus increasing the number of suppliers.
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Katina
10 days ago
Option D is clearly the correct answer. De-regulation would encourage more companies to enter the market, thereby increasing the number of suppliers.
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Jesusita
14 days ago
I think option D, de-regulation of a previously government-run industry, would increase the number of suppliers.
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