#CIPS L4M5 paper!

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You are about to practice the questions set for
#CIPS L4M5 paper!.
Please put away any distractions and focus all your efforts on passing.
⏱️Time limit: 1 hour 30 minutes

At the end of your examination practice, you will
📝 View your grade
✅ View the correct answers

NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification.

To begin your exam practice,
wait a few seconds for the start button to appear,
then tap the START button.
"We're rooting for you all the way!" All the best. 😃

Question 1

The cost of the opportunity forgone by making a choice of one option over another is known as what?

Opportunity Lost

Misallocation of resources

FOMO

Opportunity Cost

None

Question 2

What is equilibrium price?

The point where VC+FC=TC

The point where the quantity demanded is equal to the quantity supplied

The point where TC=R

The point where the quantity demanded is equal to the cost

None

Question 3

When considering the affect of a change In exchange rates. If you pay a supplier in your currency and your currency appreciates, which of the below is a likely impact?

You (as the buyer) are now in a weak position to negotiate discounts

The supplier's product has become cheaper to buy

The supplier's product has become more expensive to buy

You {as the buyer) are now in a strong position to negotiate discounts

None

Question 4

Quotas and tariffs can be considered to be what type of macroeconomic factor?

Economic growth factor

Exchange rate factor

Protectionism factor

Unemployment rate factor

None

Question 5

What is the “bargaining mix”?

All the concessions that will be made during the negotiation

All the people who will be involved in the negotiation

All the Issues in a project that are up for negotiation

Who the TOP is

None

Question 6

When entering into a commercial negotiation which is considered by the buying organization non Strategic”. How should the procurement professional prepare?

They should consider their strategy prior to the negotiation and detail ~ it may only be a single page

They shouldn’t. As the negotiation is “non-strategic” there is no need. The professional can improvise

They shouldn't be entering into a negotiation for a non-strategic purchase

They should prepare a large document detailing their strategy

None

Question 7

If you have a relationship with a supplier that is key to your business what sort of tactics are you likely to employ?

Ones that will ensure the TOP’s needs are met

Ones that will ensure the TOP’s needs are met as well as yours

Ones that will ensure your needs are met at the expense of TOP

Ones that will ensure your needs are met

None

Question 8

Your BATNA could also be described as

Your bargaining mix

Your break even point

Your opportunity cost

Your fallback position

None

Question 9

“MIL” can be used when Identifying the preferred outcomes of a negotiation. What does “MIL” stand for?

Must, intend, lowest

Must, intend, lose

Most, intend, like

Must, intend, like

None

10.

Question 10

If a person has a warm negotiation style, which of the below would be one of their strengths?

Relates well to people

Assumes beading role in meetings

Methodical approach

Assertiveness

None

11.

Question 11

If a person has a logical negotiation style, which of the below would be one of their weaknesses?

Tends to focus on issues and not the people involved

Adopts rigid positions

Too accommodating

Tends to neglect long-term goals

None

12.

Question 12

A negotiator who | impulsive and can be impatient would probably have what type of negotiation style?

Logical

Tough

Dealer

Warm

None

13.

Question 13

The Thomas-Kiimann conflict mode instrument (TKI) produced five approaches to conflict resolution, each with its own objective. What is the objective for collaborating?

To yield

To delay

To find a middle ground

To find a win-win solution

None

14.

Question 14

The Thomas-Kilmann conflict mode instrument (TKI) produced five approaches to conflict resolution, each with its own objective. What is the objective for compromising?

To yield

To win

To find a middle ground

To delay

None

15.

Question 15

Taking the five conflict management styles and considering there are two parties to a conflict, how many possible combinations are there?

None

16.

Question 16

What are connected stakeholders? as

Those who, by contractual or commercial relationships, have a significant stake In organizational activity and have a high level of influence on procurement negotiations

Those who, by contractual or commercial relationships, have a small stake in organizational activity and have a low level of Influence on procurement negotiations

Those who, by contractual or commercial relationships, have a significant stake in organizational activity but have a low level of influence on procurement negotiations

Those who, by contractual or commercial relationships, have a small stake in organizational activity and have a high level of influence on procurement negotiations

None

17.

Question 17

How should a procurement professional handle a stakeholder with a high level of influence but a low level of interest during commercial negotiations?

Engage

Inform

Make

involve

None

18.

Question 18

What is the difference between an integrative approach and a distributive approach?

An integrative approach calls for collaboration between two parties so enable a win-win situation whereas a distribution approach Is uncollaborative and causes a win-lose situation for both parties.

An integrative approach creates unbalances levels of value between the buyer and seller, whereas a distributive approach creates a balanced approach

An integrative approach is uncollaborative and causes a win-lose situation for both parties whereas a distribution approach calls for collaboration between two parties so enable a win-win situation

An integrative approach is generally a short-term/once-off relationship with the other party (TOF), whilst a distributive approach is generally long-term/regular engagement.

None

19.

Question 19

Principled negotiation is based on four fundaments: people, interests, options, and...

Leverage

Location

Criteria

Scale

None

20.

Question 20

According to the price plateau, which is the principled approach?

Cold Easy

Warm Easy

Cold Tough

Warm Tough

None

21.

Question 21

What is wrong with using a ‘positional bargaining’ process? Select two that apply.

Expensive

Encourages stubbornness

Time-consuming

Causes a win-loss approach

22.

Question 22

Which of the below are tradeables? Select two that apply.

Payment Terms

Staff

Price

Place

23.

Question 23

What are the six bases of power?

Expert, informationals, Referent, Legitimate, Reward, Coercive

Expert, informationals, Referent, Legitimate, Position, Attitude

Expert, informationals, Referent, Position, Legitimate, Reward

Expert, informationals, Referent, Legitimate, Reward, Coercive

None

24.

Question 24

Which tool can be used to understand the macro-environmental forces that influence the balance of power?

STEEPLE

Porter’s Five Forces

Customer Attractiveness and Purchasing Power Matrix

The Supplier Positioning Model

None

25.

Question 25

From the three levels to consider when considering the relative power of buyers and suppliers, which would you use Porter's Five Forces for?

Level 3: One-to-one Buyer/Supplier Dynamics

Level 2: Microenvironment

Level 2 & 3

Level 1: Macro Environment

None

26.

Question 26

How can the leverage be increased to project the organization you work for as an attractive customer, even if it is currently not a big spender?

False claims

Prompt payment

Entertaining i.e, meats out, tips away

Unfriendly staff

None

27.

Question 27

What is a spend cube?

A review of spend date highlighting the three dimensions: sub-categories and commodity groups purchased across the organization, stakeholders or departments buying the category and comparative spend with difference suppers

A data collection tool used to gather supper Information on spend

A three-dimensional model which displays a supplier's spend across the year

A costing tool used to calculate budgets

None

28.

Question 28

Which of the below is not a sign of trust in business relationships?

Sharing of information

Reducing payment terms

Mutually agreed KPIs

Supplier being encouraged to Innovate

None

29.

Question 29

What is goodwill trust?

Trust based on threats

Trust based on TOP experience

Trust based on TOP professional qualifications

Trust based on knowing TOP has your interests and heart and will not behave opportunistically

None

Please proceed to view your grade. Fingers crossed🤗

Time's up

Time is Up!

Before you begin ✍️ You are about to practice the questions set for #CIPS L4M5 paper!. Please put away any distractions and focus all your efforts on passing. ⏱️Time limit: 1 hour 30 minutes

At the end of your examination practice, you will 📝 View your grade ✅ View the correct answers

NOTE: The answers provided haven't been verified by an official CIPS-affiliated entity, therefore consider discussing your concerns with the instructor or fellow students for clarification.

To begin your exam practice, wait a few seconds for the start button to appear, then tap the START button. "We're rooting for you all the way!" All the best. 😃

Please proceed to view your grade. Fingers crossed🤗

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Before you begin ✍️

You are about to practice the questions set for
#CIPS L4M5 paper!.
Please put away any distractions and focus all your efforts on passing.
⏱️Time limit: 1 hour 30 minutes

At the end of your examination practice, you will
📝 View your grade
✅ View the correct answers

To begin your exam practice,
wait a few seconds for the start button to appear,
then tap the START button.
"We're rooting for you all the way!" All the best. 😃