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Ace Your L4M5 CIPS Level 4 Diploma in Procurement and Supply Exam

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Total 373 questions
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Commercial Negotiation Questions and Answers

Question 53

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

Options:

A.

Yes, and the budget holder is the most important due to finances

B.

Yes, procurement ensures technical specifications are fit for purpose

C.

No, only procurement, the user and suppliers have interest in negotiations

D.

No, other stakeholders, such as directors and IT, may also be interested

Question 54

XYZ Ltd is importing goods from overseas. They prefer to pay their supplier in their own currency. Which of the following is a true statement?

Options:

A.

Supplier will receive less if XYZ's currency appreciates

B.

XYZ has an advantage in negotiating discounts if their currency appreciates

C.

XYZ is able to pay less if their currency depreciates

D.

XYZ has to pay more if their currency depreciates

Question 55

Cost and price analysis is very important for buyers when they are preparing for a negotiation with supplier. Which of the following is a benefit of knowing supplier's fixed costs?

Options:

A.

The buyer would be able to know the right volume to reach break-even point

B.

The buyer would be able to know the point at which the supplier would reject the offer

C.

With the sole understanding of supplier's fixed cost, the buyer would be able to know the volume at which supplier maximises their profit in short-run

D.

The buyer would be able to get a comprehensive picture of supplier's efficiency

Question 56

Amelia needs to negotiate prices with a potential client that she has not met before. She was due to attend their offices next week, but the meeting has been cancelled. The potentialclient has offered a telephone call as an alternative, but Amelia has declined the offer as she feels negotiations cannot succeed without a face-to-face meeting. Is this the right decision?

Options:

A.

Yes, because when negotiating for the first time it is essential to meet face-to-face

B.

Yes, because you can only do negotiations face-to-face to observe non-verbal cues

C.

No, because it can be a useful introduction for conditioning expectations prior to a face-to-face meet

D.

No, because telephone negotiations enable stronger arguments which lead to better influence

Page: 14 / 28
Total 373 questions
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