CIPS Commercial Negotiation Exam L4M5 Dumps Questions

1. An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 months would be beneficial for the company.

Would this be a right thing to do?

2. Jane is planning for a forthcoming negotiation with a key supplier. She has learned what are important to the supplier and what are important to her company from previous contracts between them. In order to avoid negotiation deadlocks, she has set up several concession plans. But Jane has little experience in dealing with suppliers and doesn't know when to trade these concessions.

When is the best time in a negotiation to trade concessions?

3. Which of the following are examples of push techniques in commercial negotiations? Select TWO that apply.

4. Which of the following is the internal factor that is taken intoprice of a product?

5. A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits. Supplier's mark-up and employee benefits are examples of which of the following?

6. Which of the following are signs indicating that TOP is using coercive power in commercial negotiation? Select TWO that apply.

7. Ma Bell was the sole provider of landline telephone service to most of the US in 1980s.

This is an example of...?

8. One difference between perfect competition and monopolistic competition is that...?

9. Which of the following should be the final step of a negotiation process if both parties cannot reach an agreement?

10. Which of the following are most likely to help buyer become preferred customer in supplier's perspective? Select TWO that apply.

11. When is the best time in procurement process in which procurement should get involved so that the cost-saving opportunities are the greatest?

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

13. Which of the following are macroeconomic factors that may have influence to the commercial negotiation? Select TWO that apply

14. Which of the following will help to indicate personality preferences in four dimensions?

15. Which of the following will positively affect reputational strength of an organisation? Select TWO that apply.

16. In a commercial negotiation, a procurement professional believe that the larger the order quantity from buyer, the lower the supplier's average costs. Is this assumption true?

17. Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

18. Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?

19. A negotiation is coming to the end. Both parties haven't had any official commitments. Right before leaving the room, the buyer strongly disagrees with supplier's set up prices and requests a discount. The supplier doesn't reply but nods and smiles.

Can the buyer consider these actions as an acceptance?

20. Which of the following are recognised techniques in contract negotiation? Select THREE that apply.

21. Procurement team is required to improve leverage with their suppliers through spend consolidation.

To check whether there is any opportunity to consolidate spend, which of the following should be priority of procurement team?

22. Which of the following is the area where two or more negotiating parties may find common ground?

23. What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

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

Is this assumption true?

25. Understanding supplier's mark-up and margin can provide procurement professional a comprehensive insight into supplier's net profits. Is this statement true?

26. Before engaging in a negotiation with a supplier of rechargeable lights, procurement team tries to visualise the breakdown of supplier's costs to calculate its break-even point. They estimate that total fixed expenses related to rechargeableelectric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. The supplier charges its customer $180 per unit.

Within its current capacity, this supplier will make a profit at which of the following?

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

28. Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.

29. Which of the following is the best description of direct cost?

30. Which of the following is considered a weakness of a ‘dealer’ style negotiator?

31. Which of the following statements about oligopoly is incorrect?

32. Professional buyer is planning for the next negotiation of a simple one-off contract. This negotiation is typified by which of the following? Select TWO that apply.

33. During a negotiation, a procurement manager suggests that the two companies should split the difference which would benefit both the supplier and buyer .

Which persuasion method is she using?

34. Which of the following is definition of elasticity of demand in microeconomics?

35. To buying organisation, savings can be achieved from different saving levers or tactics .

Which of the following are means that deliver savings through optimising specifications?

36. Influence

37. Which of the following are most likely to beindirect costs of a garment manufacturer? Select THREE that apply.

38. Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.

39. When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?

40. Which of the following is categorised as fixed cost?

41. A procurement professional is preparing for anegotiation 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?

42. After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers.

Which of the following will be the objective of XYZ procurement team in this negotiation?

43. Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.

44. A supplier’s mark-up on all products is 25%. Supplier's profit margin is...?

45. Broken record

46. 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 suppliersis 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?

47. Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?

48. Which of the following is the process enabling the buyer to share with the supplier their purposes and needs to focus on some specific areas such as quality, cost, social and environmental standards, etc in the supplier's bids?

49. Which of the following is NOT a barrier to entry in amonopolized market?

50. Which of the following are the most typical characteristics of integrative approach to

negotiation? Select TWO that apply.

51. Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.

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

53. At the first stage of CIPSP rocurement and Supply Cycle (Understand need), which of the following is the most important duty of procurement professional?

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

55. Which of these personal power bases stems from the manager's position in the organisation and the authority that lies in that position?

56. Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.

57. Which of the following best describes Leverage quadrant in Kraljicmatrix?

58. Spendwaterfall

59. How contribution is calculated in break-even analysis?

60. Which of the following would cause a demand curve for a good to be price inelastic?