Real L4M5 Commercial Negotiation PDF Questions Help You Pass CIPS L4M5 Exam Successfully

Regina2021-10-27T08:08:26+00:00

We have introduced CIPS exam details to all before through article “How Can I Start Your CIPS Qualifications With L4M5 Commercial Negotiation Certification Exam?” and recommended candidates to start CIPS certification at completing CIPS Level 4 Diploma in Procurement and Supply certification. L4M5 Commercial Negotiation exam is one of the CIPS Level 4 certification core modules. Real L4M5 Commercial Negotiation pdf questions also have been released online with actual questions and answers for helping candidates pass CIPS L4M5 exam successfully. L4M5 pdf questions may be obtained in PDF format and you can prepare for the CIPS L4M5 exam qestions exactly where ever you wish to prepare from.

Come to here to read CIPS L4M5 free questions for checking real L4M5 pdf questions

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1. 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?

Value engineering

Part substitution

Budgetlinkages

Compare total cost of ownership

Volume pooling

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

Adopting out-of-date technology

Weak internal coordination

Great gap between reputation and reality

High ethical standards

Strong customer focus

3. 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?

In the testing phase

In the proposing phase

At bargaining stage

At opening stage

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

Yes, because supplier’s mark-up and margin are two most valuable sources of information to procurement

No, because mark-up and margin inform little about supplier's net profit

No, because margin is enough to tell procurement about supplier's profitability

Yes, because these are two indicators of supplier's future prospect

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

In perfect competition, firms produce slightly differentiated products

A perfectly competitive industry has fewer firms.

Monopolistic competition has no barriers to entry

Firms in monopolistic competition face a downward-sloping demand curve

6. 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

7. At the first stage of CIPSP rocurement 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

8. 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?

Compromise

Threat

Good cop/bad cop

Logic

9. 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?

No, because supplier's average costs will rise as the buyer's demand increases

No, because the supplier may need to invest in new facility to meet buyer's demand

Yes, because larger order quantity will bring a considerable profit to supplier

Yes, because larger order quantity will always enable the supplier to reach its economy of scale

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

Deadlocked

Lose lose

Win lose

Win win

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11. 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?

Web conferencing

Telephone

Teleconferencing

In-person meeting

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

Framing and reframing

Ratification

Pacing and leading

Validation

Role ethics

Anchoring

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

Coercive power

Legitimate power

Expert power

Reward power

14. 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?

Spend waterfall

Spend cube

Spend tree

Addressable spend

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

Avoidance of submitting important documentations

Reduced response time during contract performance

Resolving some conditions that would otherwise have them competing for resources

Subjective assessment of performance

Exploring a disagreement to learn from each other's insights

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

Cleaning services

Coal

Seniormanagement salary

Insurance for production lines

Scrap metal

Hourly production wages

17. Influence

3 and 4 only

1 and 3 only

1 and 2 only

2 and 3 only

18. 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.

Continuous dialogue with supplier

Total cost of ownership is the most important criterion

Vendor ratings will be used

Arm's-length approach

Pricing is the most important criterion

19. 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?

Yes, financial budgeting task would be a lot easier with fixed pricing arrangement

No, fixed price should be only applied to contracts that last 60 months or longer

No, the refinery would not be able to reap the benefits from falling commodity price and currency rates

Yes, the supplier would bear the risk when the material price increased

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Real L4M5 Commercial Negotiation PDF Questions Help You Pass CIPS L4M5 Exam Successfully

Come to here to read CIPS L4M5 free questions for checking real L4M5 pdf questions

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