CIPS New 2022 L4M5 Test Tutorial (Updated 165 Questions) [Q52-Q70]

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CIPS New 2022 L4M5 Test Tutorial (Updated 165 Questions)

L4M5 Exam Questions Dumps, Selling CIPS Products

CIPS L4M5 Exam Syllabus Topics:

Topic	Details
Topic 1	Identify the different types of relationships that impact on commercial negotiations Pragmatic and principled styles of negotiation
Topic 2	Analyse the application of commercial negotiations in the work of procurement and supply Negotiation in relation to the stages of the sourcing process
Topic 3	Building relationships based on reputation, and trust Repairing a relationship The relationship spectrum
Topic 4	Differentiate between the types of approaches that can be pursued in commercial negotiations Distributive win-lose, distributive approaches to negotiation
Topic 5	Team management and the influence of stakeholders in negotiations Definitions of commercial negotiation
Topic 6	Costing methods such as absorption, marginal or variable and activity based costing Know how to prepare for negotiations with external organisations
Topic 7	Setting targets and creating a best alternative to a negotiated agreement (BATNA) Collaborative win-win integrative approaches to negotiations
Topic 8	Analyse how to assess the process and outcomes of negotiations to inform future practice Protecting relationships after the negotiation
Topic 9	Understand key approaches in the negotiation of commercial agreements with external organisations Sources of conflict that can arise in the work of procurement and supply
Topic 10	Macroeconomics and its influence on commercial negotiations Contrast the economic factors that impact on commercial negotiations
Topic 11	Organisational power: comparing the relative power of purchasers and suppliers Explain how the balance of power in commercial negotiations can affect outcomes

NO.52 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

NO.53 IHL has beensupplying 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

NO.54 If a negotiation results in an offer which does not meet the buyer’s minimum requirements, which of the following could the buyer pursue?

PESTLE

BATNA

ZOPA

STEEPLE

NO.55 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

NO.56 Economic growth can be measured by…?

The PPI

GDP

The CPI

SBLI

NO.57 Jasmine and the IHL sales team have a negotiation scheduled with one of AB’s lead buyers, Samuel, at AB’s premises. This is one of the biggest negotiations that Jasmine has been involved in and is eager not to make any mistakes. Jasmine has heard from a colleague that Samuel tends to adopt an integrative negotiation style.
IHL senior management decides to send a team of three members to the negotiation. Jasmine is among the team and she is assigned to check body language, reactions, feeds insight to her leader and to record important comments and information from the meeting for minutes. Which of the following are roles of Jasmine in the forthcoming negotiation? Select TWO that apply.

Secretary
(Correct)

Commercial expert

Technical expert

Chief negotiator

Observer

NO.58 Which of the following is NOT a barrier to entry in amonopolized 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

Monopolies exist in many markets in real life for very different reasons:
Ownership of a Key Resource: When one company exerts sole control over a resource that is necessary for the production of a specific product,the market may become a monopoly. For example, the only medication deemed acceptable to treat a disease comes from a particular ingredient X, and knowledge of this ingredient X is owned by a single family owned company. The company can, therefore, be saidto have a monopoly over ingredient X that is needed to cure the disease because it is the only company that can produce a product deemed acceptable.
Government Franchise: In certain instances, a monopoly may be explicitly created by the government if it grants a single company, whether private or government-owned, the right to conduct business in a particular market. For example, when a national railways transportation service is created by the government, in most cases they are granted a monopoly on the operation of passenger trains in the country. As a result, other firms are only able to offer passenger train services with the cooperation and/or permission of the government-owned provider.
Intellectual Property Protection: Extending intellectual propertyprotection to a company in the form of patents and copyrights is yet another way in which monopolies are created. When a government does this, it is in fact giving a single company an exclusive right to provide a particular product / service to the market. Patents and copyrights work in providing owners of intellectual property with the right to act as an exclusive provider of a new product for a specific length of time. This creates a temporary monopoly in the market with regards to new products and services.
Natural Monopoly: A market may also become a monopoly simply because it may be more cost-effective for one company to serve the whole market than to have several smaller firms in competition with one another. A company with virtually unlimited economies of scale is referred to as a natural monopoly. Such firms become monopolies due to their position and size, which makes it impossible for new entrants in the market to compete price-wise. Natural monopolies are common in industries with high fixed costsand low marginal costs of operation such as providers of television, telephone, and internet services.
In this question, ‘A single firm is very large’ is not enough to tell whether this market is monopolistic.

NO.59 Which of the following are macroeconomic factors that may have influence to the commercial negotiation?
Select TWO that apply

Equilibrium price

Supply curve

Unemployment rate

Bargaining power of supplier

Rising import tariffs

NO.60 According French and Raven’s base model, which of the following are sources of personal power that can be used in commercial negotiation? Select THREE that apply.

Purchasing spend power

Expert power

Competitive power

Trademark power

Coercive power

Legitimate power

NO.61 Under EU public procurement directives, which of the following are procedures in which there is no commercial negotiation allowed?

Innovation Partnerships

Open Procedure

Restricted Procedure

Competitive Dialogue

Competitive Procedure with Negotiation

NO.62 Distributive approach in negotiation is typified by which of the following?

Distributive approaches are inherently inferior tointegrative 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’

NO.63 Which of the following is the best description of direct cost?

Direct costs are only variable raw materials that constitute a product

Direct costs include raw materials, labour andoverheads

Direct costs include only raw materials and labour of making the final product

Direct costs include raw materials, labour and other expenses attributable to the final product

NO.64 Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply

In a competitive market, both buyers and sellers areprice givers

Firms can freely enter or exit the market

In a perfectly competitive market, each seller has a large impact on the market price A perfectly competitive market consists of products that are all slightly different from one another

There are many buyers and sellers in the market

NO.65 An organisation is developing the specification for a capital purchase project. An important stakeholder has doubt on the draft specification. The buyer invites him to the product function meetings. In these meeting the attendees can raise their concerns, the specification development team takes in all the concerns and adjusts the specification accordingly. What kind of technique is the specification development team using?

Directive

Persuasive reasoning

Coalition

Visionary

NO.66 Which of the following is mostlikely to be a reason why a supplier charges its customer higher price after it has reached the break-even point?

Supplier may need to open new facilities to meet increasing customer’s demand

Supplier may have high fixed cost – variable cost ratio

Supplier may want to encourage buyer’s demand

The supplier may have reached economy of scale

NO.67 During a negotiation, the supplier requests for payment term shortened to 45days from 60 days. Seeing that this proposal lies within the concession plan, the procurement manager asks for 5% discount in return. Is that right thing to do?

Yes, the procurement manager should keep that 5% for himself because that amount is a fair compensation for his effort

No, it is unethical to exploit the weakness of the other party

No, procurement should insist the payment term remains 60 days

Yes, since procurement manager has his own cost savings target to achieve and he should make use of supplier’s financial status

NO.68 An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons whynegotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

Underlying interests of TOP are overlooked

MIL objectives are well established

Both parties focus on common interests

Buyer helps to create a co-operative atmosphere

Unachievable objectives were set up

NO.69 Which of the following are effective approaches when procurement professionals negotiate with monopoly suppliers?
1. Delaying payment with monopoly suppliers as long as possible to increase bargaining power
2. Setting up stronger BATNA
3. Engaging in the negotiation with a distributive approach
4. Eliminating requirements in the specification that prioritises monopoly suppliers

1 and 4 only

3 and 4 only

2 and 3 only

2 and 4 only

NO.70 Whenimplementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements?

SMART

STOPS WASTE

OWN-IT

SAMOA

L4M5 Cert Guide PDF 100% Cover Real Exam Questions: https://www.prepawaytest.com/CIPS/L4M5-practice-exam-dumps.html

CIPS L4M5 Exam Syllabus Topics:

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