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L4M5 Exam Dumps - Commercial Negotiation

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L4M5 Questions and Answers

Question # 1

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?

A.

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

B.

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

C.

No, procurement should insist the payment term remains 60 days

D.

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

Question # 2

A good negotiator invests time in understanding the needs of the individuals in a negotiation. Is this statement true?

A.

Yes, because individuals' needs always unify with their own organisation's needs and wants

B.

No, becausenegotiator should attempt to satisfy the needs of the other organisation only

C.

No, because satisfying individual needs will lead to conflict of interest and unethical practices

D.

Yes, because individual needs largely influence the outcomes of the negotiation

Question # 3

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?

A.

MIL

B.

RAQSCI

C.

TIMWOOD

D.

PPCA