CIPS L4M5 PRACTICE EXAM SOFTWARE FOR WINDOWS USERS

CIPS L4M5 Practice Exam Software For Windows Users

CIPS L4M5 Practice Exam Software For Windows Users

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CIPS Commercial Negotiation Sample Questions (Q132-Q137):

NEW QUESTION # 132
There are no commitments in hypothetical questions. Is this statement true?

  • A. Yes, because hypothetical questions only mention possible situations
  • B. Yes, because hypothetical questions generate a specific response
  • C. No, because the party who makes hypothetical questions cannot withdraw their proposals
  • D. No, because hypothetical questions are made explicitly to the other party

Answer: A

Explanation:
There are four types of questions that can be used in a commercial negotiation:
Hypothetical questions, where you ask about a possible situation or abstract concept, are very useful at the testing and proposal phases. Hypothetical question does not state any commitment as it is only about 'if something happens, then ...'. This type of question can be useful at giving suggestion.
Text Description automatically generated

LO 3, AC 3.3


NEW QUESTION # 133
SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients.
To some suppliers, SBL spend claims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?

  • A. Drop the business with SBL immediately
  • B. Charge a higher price to compensate for all the pain SBL has put
  • C. Hold on and keep SBL happy but make sure that the business is profitable
  • D. Win and keep business with SBL at any costs, even without profits

Answer: B

Explanation:
:
According to Paul Steele's 'The Seller's Perspective', customer can be classified into 4 categories as below:
Chart, treemap chart Description automatically generated

In this scenario, although SBL's spend claims large portion in suppliers' revenues, their draconian treatment will reduce SBL's attractiveness in supplier's perspective. SBL falls into Exploit quadrant. With exploitable customers, suppliers tend to 'milk' the customer and charge a high price to compensate for all the pain customer put on them.


NEW QUESTION # 134
Which of the following is most likely a consequence of falling interest rate?

  • A. Increase savings
  • B. Decrease investment
  • C. Increase aggregate demand
  • D. Decreaseconsumption

Answer: C

Explanation:
If interest rate are too low and credit is too, cheap rates can fund a spending boom with consumers and businesses buying (investment) more than they can afford to pay back.


NEW QUESTION # 135
Win-lose approach is most likely to be associated with which of the following type of relationship?

  • A. Adversarial
  • B. Partnership
  • C. Strategic alliance
  • D. Outsourcing

Answer: A

Explanation:
Distributive approach to negotiation used when the interested parties are attempting to divide something up or distribute something of value, also known as zero-sum approach or win-lose. Win-lose approach is useful when the relationship with the other party (TOP) is short-term and once-off.
The question mentions 4 types of relationship:
Adversarial: Both seek to maximize position at the expense of the other. Almost no trust, communication and cooperation. These suppliers will probably provide non-core products or services with the buyer purchasing them on a one-off basis.
Outsourcing relationship: Use competent suppliers to manage non-core businesses previously done in-house.
Require high level of trust and collaboration
Partnership: Both work closely on long term development by sharing information, technology and ideas.High level of trust with the aim to benefit both parties (win-win) Strategic alliance: Both parties identify areas where they could collaborate to create mutual benefits Among these 4 types ofrelationship, only adversarial is once-off. Then it is the correct answer.


NEW QUESTION # 136
Which of the following roles would support negotiations with an external supplier when planning a negotiation for a low-value, routine purchase? Select TWO that apply.

  • A. An internal business user
  • B. A legal advisor
  • C. The Chief Executive Officer (CEO)
  • D. The Human Resource (HR) manager
  • E. The procurement manager

Answer: A,E

Explanation:
For low-value, routine purchases, the involvement of The procurement manager (C) and An internal business user (E) is appropriate. The procurement manager brings expertise in supplier engagement, while the internal business user provides insights on specific needs for the product or service. Involving high-level roles, like the CEO or a legal advisor, is unnecessary for routine purchases, as per CIPS guidance on resource alignment in procurement.


NEW QUESTION # 137
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