CIPS Level 4 Qualification L4M5 Free Dumps (Part 3, Q81-Q120) of V12.02 Are Available – Prepare with Updated L4M5 Exam Questions

CIPS L4M5 exam questions from DumpsBase have been verified by certified professionals, which are valid for Commercial Negotiation (L4M5) exam preparation. Our L4M5 dumps (V12.02) contain 394 practice questions and answers, specifically designed to align with the latest CIPS standards and exam patterns. You can access quality by reading our free dumps first:

• L4M5 free dumps (Part 1, Q1-Q40) of V12.02
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We have L4M5 free dumps (Part 3, Q81-Q120) of V12.02 below to help you check more:

1. Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

ABC provides the information required to take action and realise improvements

Limited understanding of true costs incurred

ABC has tended to over cost products on long runs and under cost those on short runs

Costs are allocated based on volume

Variable and all related overhead expenses are specifically assigned to a business activity

2. Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising transport costs have necessitated this increase.

Which influencing tactic is the supplier using?

Rational persuasion

Inspirational appeal

Coalition

Personal appeal

3. Are tactical ploys only used in distributive approach?

No, because tactical ploys strengthen the other party's position

No, because tactical ploys will be more effective with integrative approach

Yes, because tactical ploys will help to gain insights into the other party's interests

Yes, because they will be irritants to long-term relationship

4. The stages of commercial negotiation involve which of the following characteristics?

Preparation, proposal, bargain, leave

Open, testing, bargaining, closing, revisiting

Preparing, opening, bargaining, agreement, closure

Opening, debating, promising, testing, disagreeing, closing

5. Where a negotiator uses numerical reasoning with facts as part of their negotiation approach, which of the following techniques will they be adopting?

Threat

Logic

Emotion

Power

6. Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.

Ratification

Rule ethics

Framing and re-framing

Validation

Anchoring

7. Which of the following stages of the CIPS Procurement Cycle are typically where commercial negotiations take place?

1) Contract management and improvement

2) Develop tender documentation

3) Market sector analysis

4) Contract award and implementation

1 and 4

1 and 3

3 and 4

2 and 3

8. The National Schools Purchasing Forum (NSPF) is a procurement organisation that purchases goods and services on behalf of schools on a national scale. NSPF is close to concluding negotiations in a meeting with Hygienics For All (HFA) for the supply of consumables to school washrooms. Both parties have reached an agreeable position, and NSPF feels it is important that they conclude the negotiation at this point.

What type of questions should NSPF ask HFA to achieve this?

Hypothetical questions

Open questions

Closed questions

Probing questions

9. Champion Toys (CT) is negotiating a large order of luxury toys with its supplier, Top Teds. CT has identified that lead times, order quantities, and delivery locations are tradeables that could be used in this negotiation.

At which negotiation stage should CT introduce these tradeables?

Bargaining

Closure

Proposing

Opening

10. At the first stage of CIPS Procurement and Supply Cycle (Understand need), which of the following is the most important duty of procurement professional?

Demand management

Evaluating the interests from suppliers

Undertaking 'reverse marketing'

Deciding whether RFQ or ITT should be used

11. When is the best time for buyer to propose the negotiation agenda to potential supplier?

At opening stage

At conclusion stage

At testing stage

At preparation stage

12. Any commercial negotiation process has only three potential stakeholders: procurement, the budget olders, and the users.

Is this TRUE?

Yes, and the budget holder is the most important one because of the finances involved

Yes, the role of procurement is to ensure that the technical specifications are fit for purpose

No, only procurement, the user, and suppliers have an interest in the products negotiated

No, other stakeholders, such as directors, and IT might also be interested in the negotiation outcomes

13. Distributive approach in negotiation is typified by which of the following?

Distributive approaches are inherently inferior to integrative approaches in commercial negotiation

Both parties understand each other's goals

Each party attempts to maximise the value obtained at other's expense

Both parties share 50:50 of the 'pie'

14. Which of the following is a description of mark-up?

Profit expressed as a percentage of the selling price

Profit expressed as a percentage of costs

Profit expressed as a percentage of fixed costs

Profit expressed as a percentage of variable costs

15. According to Dr. Mari Sako, which of the following is potentially the weakest trust to be built?

Competence trust

Goodwill trust

Charitable trust

Contractual trust

16. Effective listening is important in integrative negotiations. Is this statement correct?

Yes, as it allows issues to be shared and understood between all parties

Yes, as it means the supplier’s attempts at negotiation can be stopped quickly with reasoning

No, as what the other party has to say is not important

No, as effective listening is important only in a distributive negotiation

17. Which of the following are variable costs?

Rent

Loan repayments

Insurance

Packaging

18. It may be more difficult to buy on a credit from supplier who locates in a country with a hyperinflation?

Is this assumption true?

No, because supplier's bank will take risks from currency fluctuation

Yes, because the supplier's currency will lose its value overtime

Yes, because buyer has more advantage if they make payment in their own currency

No, because the higher the inflation rate, the stronger the supplier's currency

19. Which of the following are common forms of collaborating approach in Thomas-Kilmann conflict resolution model? Select THREE that apply.

Exploring a disagreement to learn from each other’s insights

Yielding to another’s point of view

Resolving some conditions that would otherwise have them competing for resources

Trying to win at any cost

Trying to find a creative solution to current problem

Seeking a quick middle-ground position

20. A procurement professional is sourcing low value items. He conducts market analysis and realise that these items can be provided by many suppliers and switching cost between suppliers is relatively low. He also assume that the relationship between buyer and supplier will be transactional rather than long-term.

According to Thomas-Kilmann conflict model instrument, which of the following is the most appropriate style that the procurement professional should adopt when negotiating with these suppliers?

Avoiding

Compromising

Competing

Collaborating

21. John Browne, a junior buyer for a corporation, is analyzing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research.

Should John consider the foreign exchange rates?

No, as they only affect the bank's interest rates for loans

Yes, only if the organization can handle foreign currencies in their accounts

Yes, as they can affect profit and turnover

No, exchange rates only apply to the national economy

22. At which stage in a negotiation would questions be asked to obtain missing information?

The bargaining stage

The proposing stage

The opening stage

The testing stage

23. A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

Develop

Nuisance

Core

Exploit

24. What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?

To aid detailed pre-meeting data gathering and analysis

To reduce financial and logistical risk for both parties

To be able to confidently walk away from an unfavorable deal

To facilitate information sharing between both parties

25. Which of the following two are recognized strategies to achieve a win-lose outcome?

1) Making the other party lower its resistance point

2) Making the other party think this settlement is the best it can achieve

3) Employ empathy to gain mutual understanding

4) Using compromise and creativity tactics

1 and 2 only

3 and 4 only

1 and 3 only

2 and 4 only

26. Which of the following is NOT a barrier to entry in a monopolized market?

The costs of production make a single producer more efficient than a large number of producers

A single firm is very large

The government gives a single firm the exclusive right to produce some good

A key resource is owned by a single firm

27. Which of the following are types of questions that are useful in opening and testing phases of a negotiation? Select the TWO that apply.

Closed

Narrow

Probing

Leading

Open

28. Different types of relationships impact commercial negotiations.

At a negotiation, which one of the following sources would help to support leverage for the buyer?

Legitimate power

Personality power

Powerful colleagues

Friends power

29. Langham Industries is seeking to expand its operations globally. The CEO has asked the procurement department to engage in a macroeconomic analysis for its potential new supply chain to meet organisational objectives and outcomes.

Which of the following would be a source of macroeconomic data?

Competitor analysis

Attending trade conferences

Published market indices

Online supplier forums

30. What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

Persistent late payment of the supplier’s invoices

Unequal sharing of gains, risks, and costs with the supplier

Requesting early supplier involvement

Planning scheduled visits to the supplier site

Scheduling agreed supplier delivery dates

31. Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.

Cleaning services

Coal

Senior management salary

Insurance for production lines

Scrap metal

Hourly production wages

32. IHL has been supplying to XYZ Ltd for months. XYZ Ltd procurement manager Diana realises that the IHL's input prices are dropping and this is a good time to re-negotiate the price of the contract. She invites IHL representative to XYZ headquarter to make a bargain on the current price. At the opening stage of the negotiation, Diana requests a 10% reduction in price with an increase in volume purchased.

Is Diana's action appropriate in the opening phase?

Yes, because the negotiation should be done as quick as possible

Yes, because Diana's proposal is a fair trade for both parties

No, because Diana should state exactly the increasing quantity

No, because Diana has put the markers down too soon

33. A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation.

What would be an appropriate response from the procurement manager?

Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating

Accept the offer as this would save time; a supplier visit and negotiation could be done at the same time

Decline the offer as it would take too much time to go and visit the supplier

Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage, as they will be in a familiar environment

34. The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer's greater bargaining power over the suppliers.

In what other circumstances should an adversarial relationship be used?

When the supplier is likely to respond with further concessions to maintain a long-term relationship

In all forms of negotiation as each party is always trying to gain advantage over the other

In a monopoly market as the supplier will respond by conceding quantity discounts

When the issues concerned are non-negotiable, for example, health and safety commitments

35. According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?

Litigation

Persuasion

Negotiation

Gambling

36. Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract.

Is this statement true?

Yes, because all parties must have exactly the same goals in integrative negotiation

No, because any party may leverage its own advantage during the contract

Yes, because both parties have well understood each other's goals when they engage in collaborative negotiation

No, because the parties will always find a compromise solution in integrative approach

37. Which of the following occur within the planning and preparation stage in a negotiation process? Select THREE that apply.

Understanding the other party

Defining the constituents

Making as few concessions as possible

Using questions to elicit information

Narrowing the range of solutions

Analyse the bargaining power

38. Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms.

Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply

SRI's purchase amount makes significant proportion of supplier revenue

Costs of changing suppliers are high

Rubber from different suppliers is virtually similar

SRI sets up its own rubber plantation

There are no close substitutes for rubber

39. A procurement expert has been asked to ensure they consider emotional intelligence in their negotiation strategy. They have agreed to this and have started planning their approach.

Which of the following describes emotional intelligence?

An individual's ability to gain leverage by persuading the other party to agree to their terms

An individual's ability to fully understand another party's cost drivers and profit margins

An individual's ability to understand their own feelings and those of other people

An individual's ability to place themselves in a position of authority during a negotiation

40. A procurement professional is preparing for a negotiation with supplier. She is setting targets for price which her company is seeking to achieve.

Which of the following acronyms can help her identify limits before engaging in the negotiation?

MIL

RAQSCI

TIMWOOD

PPCA

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