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?

AIntroduction of minimum wage regulations

BHigh and increasing levels of investment required to enter the market

CRequirement for all companies to have 10,000 or more employees

DDe-regulation of a previously government-run industry

Show Suggested Answer

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

by Janine at Jun 02, 2024, 01:12 PM

Limited Time Offer

25%

20 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.

upvoted 0 times

Enola

1 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.

upvoted 0 times

...

Jesusita

24 days ago

I think option D, de-regulation of a previously government-run industry, would increase the number of suppliers.

upvoted 0 times

...