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NEW QUESTION # 46
Red Ltd and Blue Ltd have had a disagreement over a high value project they have been partnering on. They have been unable to resolve the issues inhouse and Red Ltd has suggested Mediation as an option. Is this a good option?
Answer: A
Explanation:
The correct answer is 'Yes- mediation involves a neutral third party and gets both parties to attempt to reach a compromise'. Be careful not to confuse mediation with arbitration - arbitration is when the buyer and supplier agree to accept a third party's decision which will solve the disagreement issues. See p.112 for more information on solving disputes
NEW QUESTION # 47
Cigarettes and alcohol are often described as having an 'inelastic price'. What does this mean?
Answer: A
Explanation:
A product with an 'inelastic price' means that consumption doesn't really depend on how much it costs. So you could increase the price of alcohol and cigarettes and people would tend to still buy them. A product with an elastic price means that a change in price would have a large affect on the number of people who bought the item. See p.95 for more details on price elasticity.
NEW QUESTION # 48
When outsourcing, which legislation details the rights of employees who may find themselves now working for the outsourcing company?
Answer: A
Explanation:
The correct answer is TUPE: Transfer of Undertakings (Protection of Employment). Details on TUPE can be found on p.115
NEW QUESTION # 49
Which of the following factors would you use to analyse the macro-environment? Select THREE.
Answer: B,C,E
Explanation:
STEEPLE is what is used to analyse the macro-environment; the factors are; social, technological, economic, environmental, political, legislative and ethical. Details of this can be found on p.43-44
NEW QUESTION # 50
Partnership relationships are long-term relationships without a defined end period. Is this statement TRUE?
Answer: D
Explanation:
The correct answer is 'Yes-partnerships do not have end dates because they involve significant investment'. This is explained on p.126. Partnerships can involve contracts - so the other 'yes' answer is incorrect.
NEW QUESTION # 51
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