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NEW QUESTION 50
What are service credits?
- A. A clause in a contract that allows for additional bonus payments for meeting KPIs
- B. When a buyer makes a purchase on credit
- C. A type of payment where goods are delivered before payment is made
- D. A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance
Answer: D
Explanation:
The correct answer is "A mechanism for performance management where the buyer has the right to deduct money from payments owed for under performance". A definition is provided on p.113 and states "If a supplier fails to meet the standard set in the service credits, the buyer has the right to deduct set amounts of money from payments owed to the supplier"
NEW QUESTION 51
Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.
- A. competition is not strong
- B. there are no barriers to entry
- C. competition is at its highest level possible
- D. suppliers are selling differentiated products
Answer: B,C
Explanation:
In a 'perfect competition' there are no barriers to entry or exit, and competition is at its highest possible level. For more information on different types of market see p.40
NEW QUESTION 52
Grey Stone Memorial Hospital is a private medical facility which has an idea for a vaccine to a deadly disease, but does not have the capacity to make the vaccine itself. It is considering partnering with a well-known pharmaceutical company in order to bring the vaccine to market. What is the biggest risk to Grey Stone?
- A. Uninformed stakeholders
- B. Low quality product
- C. Increased Costs
- D. Intellectual Property Rights
Answer: D
Explanation:
The correct answer is 'Intellectual Property Rights'. Grey Stone will need to share its idea for the vaccine with the pharmaceutical company and this is risky if there is no trust between the parties. See p.134 for more information on Risks of Partnerships.
NEW QUESTION 53
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