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L4M5 Exam Dumps - Commercial Negotiation

Question # 4

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

A.

Cleaning services

B.

Coal

C.

Seniormanagement salary

D.

Insurance for production lines

E.

Scrap metal

F.

Hourly production wages

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Question # 5

At which stage in a negotiation would questions be asked to obtain missing information?

A.

The bargaining stage

B.

The proposing stage

C.

The opening stage

D.

The testing stage

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Question # 6

Information generated through Purchase Price Cost Analysis can be useful to the purchaser, by helping to identify which of the following costs relating to the supplier? Select the THREE that apply.

A.

External costs

B.

Profit

C.

Material costs

D.

Market costs

E.

Budgeted costs

F.

Depreciation on equipment

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Question # 7

Economic growth can be measured by...?

A.

The PPI

B.

GDP

C.

The CPI

D.

SBLI

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Question # 8

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

A.

Innovation Partnerships

B.

Open Procedure

C.

Restricted Procedure

D.

Competitive Dialogue

E.

Competitive Procedure with Negotiation

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Question # 9

Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.

A.

Both parties understand each other's goals

B.

Focusing onpositions

C.

Conflict management skills

D.

Constant shadowing and oversights

E.

Emotional-based assessment

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Question # 10

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?

A.

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

B.

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

C.

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

D.

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

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Question # 11

Rose is a senior buyer from a skiing equipment retailer. Rose is concerned about the current ski boot shortage and the number of invoicing problems from a key supplier. Shehas decided to have a video conference with Victor, CEO of the supplier. Initially, she intends to threaten Victor with contract termination unless he can improve the situation. However, she is a little wary of doing this as the switching costs are high. Eventually, she decides to seek solutions by encouraging the other party to offer their views and ideas. Rose also prepares some ideas to discuss with Victor. Which of the following is the persuasion method that Rose intends to use in the forthcoming conference?

A.

Directive (push)

B.

Persuasive reasoning (push)

C.

Collaborative (pull)

D.

Visionary (pull)

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Question # 12

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?

A.

Spend waterfall

B.

Spend cube

C.

Spend tree

D.

Addressable spend

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Question # 13

Which of the following are examples ofnon-verbal negotiation? Select THREE that apply.

A.

Asking the supplier to repeat their proposal

B.

Getting messages across with facial expressions

C.

/ Speaking softly with long pauses

D.

Communicating with the other party by using gestures

E.

Explaining to the supplier about the scope of the project

F.

Using the body language

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Question # 14

A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

A.

Develop

B.

Nuisance

C.

Core

D.

Exploit

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Question # 15

In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the others to buy intoinfluencer's ideas?

A.

Persuasive reasoning (push)

B.

Collaborative (pull)

C.

Visionary (pull)

D.

Directive (push)

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Question # 16

When prices of input materials increase, supply curve shifts to the left while demand remains stable. The shift of supply will tend to cause which of the following?

A.

An increase in the equilibrium price and quantity

B.

A decrease in the equilibrium price and quantity

C.

A decrease in the equilibrium price and an increase in the equilibrium quantity

D.

An increase in the equilibrium price and a decrease inthe equilibrium quantity

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Question # 17

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

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Question # 18

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

A.

Avoidance of submitting important documentations

B.

Reduced response time during contract performance

C.

Resolving some conditions that would otherwise have them competing for resources

D.

Subjective assessment of performance

E.

Exploring a disagreement to learn from each other's insights

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Question # 19

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?

A.

Value engineering

B.

Part substitution

C.

Budgetlinkages

D.

Compare total cost of ownership

E.

Volume pooling

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Question # 20

Which of the following is the first step in the development of negotiation strategies?

A.

Determining your BATNA

B.

Developing scenarios around possible options

C.

Recognising TOP'sneeds and wants

D.

Defining overarching objectives

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Question # 21

Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.

A.

Purchase of aircraft

B.

Catering services

C.

Advertising and promotion

D.

Flightcrew training

E.

Fuel

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Question # 22

Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?

A.

Engage and keep them satisfied

B.

Engage and consult with them regularly

C.

Keep these people inform through general communication media

D.

Manage them closely

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Question # 23

In addition to organisational power, personal power of each negotiator can influence the outcomes of a negotiation. A good negotiator can leverage different sources of power. Is this statement true?

A.

Yes, because the good negotiator recognises his own power in a negotiation

B.

No, because each person has only one superior source of personal power

C.

Yes, because allsources of power have similar effectiveness in every situation

D.

No, because only organisational power can be leveraged during a negotiation

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Question # 24

After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers.Which of the following will be the objective of XYZ procurement team in this negotiation?

A.

Yielding the supplier's point of view

B.

Postponing the issue

C.

Seeking a quick middle-ground position

D.

Confronting and trying to find a creative solution immediately

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