SSS has adopted some outsourcing practices in order to improve efficiency of its operations.

Vendor: CIMA
Product: E1
Update on: Jul 29, 2025
Questions: 336

CIMA E1 Question Answer

SSS has adopted some outsourcing practices in order to improve efficiency of its operations. One of the managers has been made aware that the supplier is now also working for a competitor. Which TWO of the following should SSS be concerned with regarding the supplier's and ompetitor's new relationship?

Risk of loss of confidential information

Risk of continuity of supply

Risk of increased transaction costs

Risk of losing core competence