Free Access HBX.CORe.v2026-08-07.q212 Practice Test (Page 10)

Question 41

Supplier X provides software critical to production at EFG Corporation. Supplier X informs EFG that the software version it currently uses will no longer be supported and recommends an upgrade to a newer version.
However, EFG is very pleased with the performance of the current version, and the costs for upgrading are prohibitive at this time. EFG wants to find incentives for Supplier X to continue supporting EFG's needs. In this situation, which of the following would be the BEST course of action for EFG to take?

A.Request Information on the newer software version to persuade top management of its value

B.Contact EFG's legal department to review the liquidated damages clause in the contract with Supplier X

C.Identify additional business opportunities for Supplier X at EFG, as part of their ongoing relationship

D.Stress that failure to offer support will result in negative references for Supplier X

Question 42

A sourcing manager is negotiating a contract with a human resources supplier that has access to employee data, including social security numbers. The supplier proposes an annual cap of $10,000 on overall liability. In this situation, which of the following is the MOST important stakeholder for the sourcing manager to consult in regard to this supplier?

A.Risk Management

B.Operations

C.Legal

D.Information Technology (IT)

Question 43

TUV Inc., a small manufacturing firm, hopes to rebuild its customer base and return to profitability after a period of losing market share. Negotiations with a key supplier will be an important factor in this turnaround if target costs and pricing can be worked out.
Given this situation, which of the following would create the MOST challenging constraints In negotiations?

A.Demand for the supplier's products from competitors

B.Need for flexible delivery schedules

C.Troubled financial history of TUV

D.Unpredictable future volume

Question 44

EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment.
Supplier A has been very successful in meeting EFG's stringent quality specifications, which has been critical for EFG.
EFG learns that Supplier A plans to acquire a smaller firm which makes components similar to those under contract with EFG. EFG is concerned that the supplier may transfer its contract to the new subsidiary, leading to compromises in quality. Given this situation, which of the following is the BEST course of action for EFG to take?

A.Negotiate with Supplier A to remove the changes clause from the contract

B.Negotiate with Supplier A to strengthen the indemnification clause in the contract

C.Negotiate with Supplier A to add a consent of assignment clause to the contract

D.Take no action, as Supplier A must supply the chips at the same quality level no matter who manufactures them

Question 45

An organization focused on decreasing HIV in developing countries wishes to investigate the relationship between the prevalence of HIV and various education and economic factors. The organization collects data from 2011 for 98 different countries on the prevalence of HIV, as well as average years of schooling, gross domestic product (GDP) per capita, and health expenditures per capita, which they believe all have an impact on HIV prevalence. Which of the following options correctly runs the regression specified above?
A)