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CIPS L4M5 Questions Answers

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Total 317 questions

Commercial Negotiation Questions and Answers

Question 41

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?

Options:

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

Question 42

A buying organisation with a low spend but the reputation for paying on-time. In order to increase buyer's leverage in negotiation with suppliers, which of the following should be a priority of this buyer?

Options:

A.

Unclear tender award criteria

B.

Volume separation

C.

Spend concentration

D.

Unavailable technical support

Question 43

One of the most important steps in preparing for negotiations is to appraise the relative power of the parties. The buying organisation must assess its bargaining power against that of the supplier it intends to negotiate with. This information is necessary in facilitating the preparation, the negotiation team and the negotiation strategy.

In what situation is the bargaining power of buyers likely to be high relative to suppliers?

Options:

A.

The supplier’s product is critical to the buyer’s business

B.

There are fewer buyers relative to suppliers

C.

The buyer’s requirement is urgent and cannot be postponed

D.

There are few suppliers relative to buyers

Question 44

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

Options:

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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Total 317 questions