Get L4M5 Products Practice Material for L4M5 Exam Question Preparation [Q72-Q89]

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Get L4M5 Products Practice Material for L4M5 Exam Question Preparation

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CIPS L4M5 Exam Syllabus Topics:

Topic	Details
Topic 1	Analyse how to assess the process and outcomes of negotiations to inform future practice Protecting relationships after the negotiation
Topic 2	Identify the different types of relationships that impact on commercial negotiations Pragmatic and principled styles of negotiation
Topic 3	Differentiate between the types of approaches that can be pursued in commercial negotiations Distributive win-lose, distributive approaches to negotiation
Topic 4	Costing methods such as absorption, marginal or variable and activity based costing Know how to prepare for negotiations with external organisations
Topic 5	Setting objectives and defining the variables for a commercial negotiation Use of telephone, teleconferencing or web based meetings
Topic 6	How purchasers can improve leverage with suppliers The importance of power in commercial negotiations
Topic 7	How behaviours should change during the different stages of a negotiation Compare the key communication skills that help achieve desired outcomes
Topic 8	Organisational power: comparing the relative power of purchasers and suppliers Explain how the balance of power in commercial negotiations can affect outcomes
Topic 9	Analyse the application of commercial negotiations in the work of procurement and supply Negotiation in relation to the stages of the sourcing process
Topic 10	Macroeconomics and its influence on commercial negotiations Contrast the economic factors that impact on commercial negotiations
Topic 11	Building relationships based on reputation, and trust Repairing a relationship The relationship spectrum
Topic 12	Setting targets and creating a best alternative to a negotiated agreement (BATNA) Collaborative win-win integrative approaches to negotiations

NEW QUESTION 72
A buying organisation with a low spend but the reputation for paying on-time. In order to increase buyer’s leverage in negotiation with suppliers, which of the following should be a priority of this buyer?

Unclear tender award criteria

Volume separation

Spend concentration

Unavailable technical support

NEW QUESTION 73
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

NEW QUESTION 74
Commercial negotiation ends at the award of a contract. Is this statement true?

Yes, because there are no rooms for negotiation after the contract is awarded

Yes, because the supplier will comply with legally binding obligations

No, because improvements can be achieved through post-award negotiation

No, because real commercial negotiation begins after the contract is awarded

NEW QUESTION 75
Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier?
1. Spend candlesticks
2. Spend tree
3. Aggregate expenditure model
4. Spendwaterfall

2 and 4 only

3 and 4 only

1 and 2 only

1 and 3 only

NEW QUESTION 76
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

NEW QUESTION 77
A new manager has been appointed with responsibility for an organisation’s category which has major impact on organisational cost base and there are little competitions in the supply market. They have an objective to improve supplier cost structures over time. Which of the following should they carry out first?

Purchase price cost analysis

Competitive rivalry analysis

Volume concentration

STEEPLE analysis

NEW QUESTION 78
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

NEW QUESTION 79
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

NEW QUESTION 80
Should a buyer use closed questions in a negotiation?

Yes, because closed questions help to reconfirm certain facts

Yes, because they urge the supplier to provide more detailedExplanation::

No, the buyer should maximise the use of open questions

No, supplier will consider closed questions as provocation

NEW QUESTION 81
Which of the following are most likely to be fundamentals of Fisher & Ury’s principled negotiation?
1. Depersonalise the argument
2. Focuson positions
3. Generate creative options
4. Using subjective criteria

2 and 3 only

2 and 4 only

1 and 3 only

1 and 4 only

NEW QUESTION 82
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

NEW QUESTION 83
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

NEW QUESTION 84
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

NEW QUESTION 85
Which of the following are examples of push techniques in commercial negotiations? Select TWO that apply.

Threat of punishment, costs and damage

Listening to, involving andsupporting others

Argument based on information, logic and reason

Working together to define the problem, the goals and the best solution

Using language and imagery to ‘paint a picture others can see’

NEW QUESTION 86
Win-lose approach is most likely to be associated with which of the following type of relationship?

Adversarial

Partnership

Strategic alliance

Outsourcing

NEW QUESTION 87
Which of the following statements about oligopoly isincorrect?

A few firms play an important role in the sale of a product

Oligopolistic firms recognize their interdependence

One firm’s behaviour is a function of what its rivals do

Prices in oligopoly are predicted to fluctuate widely and frequently

NEW QUESTION 88
XYZ Ltd is importing goods from overseas. They prefer to pay theirsupplier in their own currency. Which of the following is a true statement?

Supplier will receive less if XYZ’s currency appreciates

XYZ has an advantage in negotiating discounts if their currency appreciates

XYZ is able to pay less if their currency depreciates

XYZ has to pay more if their currency depreciates

NEW QUESTION 89
An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?

No, because negotiating over telephone is enough to collect information on supplier’s capability

Yes, because the visit would increase the buyer’s bargaining power

Yes, because this is an opportunity to assess the supplier’s capacity

No, because the travel would incur unnecessary costs