CIPS Commercial Negotiation – L4M5 paper 1

L4M5 paper 1 – Free

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31
Questions
60
Minutes

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Question 1 of 31

1 What are potential sources of conflict between the buyer and the supplier? Select two that apply:
2 Which among the following is an example of fixed costs?
3 Is effective listening important in integrative negotiation?
4 Which of the following are considered effective influence techniques in contract negotiation? Select THREE that apply:
5 Which communication skill is key to a successful international negotiation, given the impact of culture?
6 Which of the following are characteristics of the push approach?

1.Exerting power
2.Aimed at securing compliance of often against resistance of influence
3.Influences may not be consciously aware of the process
4.Persuasion or interpersonal influence

7 Which of the following are characteristics of an effective negotiation objective? Select two that apply:
8 Dave, a procurement manager, is preparing for a high-value, long-term procurement and reviewing how the country’s economy may influence his position. Where would he find relevant macroeconomic information?

1.Company accounts
2.Stock exchange
3.Government forecast
4.Trade fairs

9 As a buyer, if a supplier has let you down and you’ve lost trust in their ability to deliver, which of the following would be the best approach to rebuild the relationship?
10 Which sources of personal power are relevant in commercial negotiations?

1.Expect power
2.Informational power
3.Reward power
4.Charismatic power

11 Which scenario best describes the buyer having relatively higher bargaining power compared to the supplier?

1. Few substitute products in the market
2. Demand is not urgent
3. The buyer can produce in house
4.There are limited supplier in the market

12 Listening is a key activity in any negotiation. The listening process in negotiation includes which two of the following?

1. Hearing
2. interpreting
3. Rapport
4. Influencing

13 Rachel, a junior buyer, is negotiating with an international supplier and is concerned the supplier might not respect her authority. She decides to hold the negotiation at her office. What is the greatest advantage of negotiating at her office?
14 Which of the following are external factors in pricing decisions? Select two that apply:
15 Steph is negotiating with an internal stakeholder who believes the product she developed isn’t suitable. She suggests the stakeholder attend the product development meeting to voice their opinions. Which influence technique is Steph using?
16 Which task should be carried out during the closure stage of a commercial negotiation?
17 Open questions are typically used for which of the following?
18 Is it always necessary to have a BATNA (Best Alternative to a Negotiated Agreement) at the start of negotiations?
19 Which persuasion technique might include a statement of negative consequence?
20 A supplier’s expenditure that can be attributed to a specific product is known as:
21 A manufacturer produces two products: A and B. The total cost of making product A is $108, and for product B, it’s $120. What would the mark-up value be for products A and B, respectively?
22 Which of the following resources are crucial for supporting a supplier negotiation, besides involving colleagues? Select two that apply:
23 What are two advantages of team negotiation?
24 What are the potential sources of conflict between the buyer and the supplier? Select two that apply:

1.Price elasticity of demand
2.Environmental Factor
3.Risk management
4.Stages in the product life cycle

25 Which of the following is considered on-the-job training?

1.Taught workshop
2.Feedback
3.Coaching
4.Anchoring

26 Mike, a junior buyer specializing in purchasing procedures, has built strong relationships within his team and other departments. What source of power is Mike likely to possess?
27 Which negotiation approach is focused on a win-lose outcome?
28 Is it ethical to use emotions as a persuasion technique in contract negotiations?
29 A procurement manager is preparing for negotiation with a major supplier and is withholding important information to gain stronger leverage. Is this appropriate in an integrative negotiation style?
30 Break-even analysis helps determine when a business neither makes a profit nor a loss. What formula is used to calculate the break-even point?
31 How can the outcome of a commercial negotiation be assessed?

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