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L4M5 Commercial Negotiation is now Stable and With Pass Result | Test Your Knowledge for Free

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L4M5 Practice Questions

Commercial Negotiation

Last Update 4 days ago
Total Questions : 395

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Our free CIPS Level 4 Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L4M5. Use this test to pinpoint which areas you need to focus your study on.

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Question # 111

A buyer is preparing for an upcoming negotiation with a large supplier on a contract renewal price. The buyer has undertaken some analysis and is concerned that changes in the organisation’s macro-environment over the last year will result in a price increase. The buyer’s analysis has identified changes in which of the following?

Options:

A.  

Exchange rates

B.  

Supplier power

C.  

Changes in demand

D.  

Internal policies

Discussion 0
Question # 112

When is an adversarial style of negotiation appropriate?

Options:

A.  

When one party has high bargaining power

B.  

When a buyer feels the relationship is important

C.  

When both parties want a win/win outcome

D.  

When a sustainable partnership is key

Discussion 0
Question # 113

A negotiation meeting commences with the supplier asking the buyer 'How do you feel about the service you receive from us currently?', followed by 'What do you think about our latest products?' and 'How do we compare with other suppliers you use?'

The supplier is using which type of questions?

Options:

A.  

Probing questions

B.  

Closed questions

C.  

Open questions

D.  

Hypothetical questions

Discussion 0
Question # 114

An integrative negotiation style involves ...

Options:

A.  

Maintaining a distant (arm's length) relationship with a supplier and the avoidance of information sharing

B.  

The buyer demanding concessions without offering anything in return

C.  

Creating mutually beneficial outcomes for all parties and collaborative problem solving with a supplier

D.  

A competitive approach with a focus on winning at all costs

Discussion 0
Question # 115

Maria, an NHS buyer, needs cost savings due to budget cuts. She plans to achieve savings with a collaborative supplier. Which negotiation approach should she use?

Options:

A.  

Win–Lose

B.  

Lose–Lose

C.  

Win–Perceived Win

D.  

Win–Win

Discussion 0
Question # 116

Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract. Is this statement true?

Options:

A.  

Yes, because all parties must have exactly the same goals in integrative negotiation

B.  

No, because any party may leverage its own advantage during the contract

C.  

Yes, because both parties have well understood each other's goals when they engage in collaborative negotiation

D.  

No, because the parties will always find a compromise solution in integrative approach

Discussion 0
Question # 117

Toby is an international sourcing category buyer within a third sector (not-for-profit) organisation. He has chosen to use a more adversarial style of negotiation as he believes his organisation has greater bargaining power over the supplier.

In what other situation would an adversarial relationship be used by Toby?

Options:

A.  

In a monopoly market, as the supplier will allow the category buyer quantity discounts

B.  

When there is a mutual objective from the category buyer and supplier for efficiencies

C.  

In all forms of negotiation as each party is always trying to gain advantage over the other

D.  

When there is a short-term transaction focus from the category buyer’s organisation

Discussion 0
Question # 118

A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

Options:

A.  

Leading

B.  

Hypothetical

C.  

Reflective

D.  

Multiple

Discussion 0
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