CIPS L4m5 Commercial Negotiation Exam Questions & Answers

All 22 questions

1. Q1 Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation?1. Depersonalise the argument2. Focus on positions3.…
2. Q2 XYZ Ltd needs to purchase a bundle of IT products from suppliers. The procurement manager requests details of costs regarding designing and…
3. Q3 Which of the following should be the final step of a negotiation process if both parties cannot reach an agreement?
4. Q4 Which of the following is definition of elasticity of demand in microeconomics?
5. Q5 Personal power is only used in distributive approach. Is this statement true?
6. Q6 Understanding supplier's mark-up and margin can provide procurement professional a comprehensive insight into supplier's net profits. Is this statement true?
7. Q7 Stalemate is more likely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?
8. Q8 An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is…
9. Q9 A supplier’s mark-up on all products is 25%. Supplier's profit margin is...?
10. Q10 Which of the following are intangible values created by trust in business relationships? Select TWO that apply.
11. Q11 Why is it important for a buyer to understand the macroeconomic conditions of the supplier’s country before negotiating with them?
12. Q12 Which of the following are most likely to be sources of conflict that can emerge from the content of commercial negotiations? Select…
13. Q13 What is a true characteristic of a monopolistic market?
14. Q14 A procurement professional is preparing for a negotiation of purchasing non-critical commodity products. He knows that the product can be easily replaced…
15. Q15 Which of the following are components of active listening?1. Summarizing the speaker’s points to ensure understanding.2. Interrupting the speaker to ask questions.3.…
16. Q16 Aubral Ltd is a company that finds and hires talented people for other businesses. The businesses pay Aubral a fee for using…
17. Q17 Which of the following are examples of probing questions? 1. Does your company use ERP system? 2. If we buy 1000 units,…
18. Q18 Which of the following practices are most likely to make a buying organisation less appealing to potential suppliers? Select TWO that apply.
19. Q19 Which of the following would cause a demand curve for a good to be price inelastic?
20. Q20 Which of the following must be done in the preparation stage of a negotiation? 1. Sweeting the deals 2. Planning the concessions…
21. Q21 What letter R in the acronym SMART stands for?
22. Q22 Which of the following are features of a perfect competition? Select TWO that apply.