Free Commercial Negotiation Practice Questions

Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

Why is the use of power important for integrative commercial negotiations?

Moving negotiations forward when they get stuck on certain issues

Maximising the share of value gains for the negotiator's side

Coercion of the other party into a submissive agreement

Breaking through negotiation barriers related to attitude

Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?

Which of the following are variable costs?

John is in a negotiation with a supplier. They have decided that their future

relationship will be long term, built on trust and respect, and that gains and risk

will be shared between the parties. The parties will also share ideas and

collaborate on those ideas. Which of the following is this type of relationship?

According to Mendelow’s Matrix, how should stakeholders with high interest but low power be managed?

Which of the following are stages of a win-win approach to negotiations?

Find out where the interests of both parties align

Design new options, where everyone gets more of what they need

Limit the resources to a fixed number

Insist that the agreement includes subjective regulatory standards

A break-even analysis uses which aspects as part of the calculation?

Fixed cost

Buying cost minus variable cost per unit

Variable cost

Selling price minus variable cost per unit

Sunita’s supplier states: “Meeting your needs is meeting my needs because we are in this together.” What type of negotiation is being undertaken?

Understanding supplier's mark-up and margin can provide procurement professional a comprehensive insight into supplier's net profits. Is this statement true?