CIPS – Whole Life Asset Management (L4M7) paper *4 Leave a Comment / By Admin / June 12, 2024 Before you begin ✍️ You are about to practice the questions set for CIPS - Whole Life Asset Management (L4M7) paper *4. 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 Opportunity Cost Misallocation of resources FOMO None Question 2 What is equilibrium price? The point where the quantity demanded is equal to the cost The point where TC=R The point where VC+FC=TC The point where the quantity demanded is equal to the quantity supplied 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? 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 You (as the buyer) are now in a weak position to negotiate discounts None Question 4 Quotas and tariffs can be considered to be what type of macroeconomic factor? Economic growth factor Unemployment rate factor Protectionism factor Exchange rate factor None Question 5 What is the “bargaining mix”? Who the TOP is All the Issues in a project that are up for negotiation All the people who will be involved in the negotiation All the concessions that will be made during the negotiation 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 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 They should consider their strategy prior to the negotiation and detail ~ it may only be a single page 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 your needs are met Ones that will ensure your needs are met at the expense of TOP Ones that will ensure the TOP’s needs are met as well as yours Ones that will ensure the TOP’s needs are met None Question 8 Your BATNA could also be described as Your fallback position Your bargaining mix Your break even point Your opportunity cost None Question 9 “MIL” can be used when Identifying the preferred outcomes of a negotiation. What does “MIL” stand for? Must, intend, lose Must, intend, like Must, intend, lowest Most, intend, like None Question 10 If a person has a warm negotiation style, which of the below would be one of their strengths? Assumes beading role in meetings Methodical approach Relates well to people Assertiveness None Question 11 If a person has a logical negotiation style, which of the below would be one of their weaknesses? Too accommodating Tends to focus on issues and not the people involved Tends to neglect long-term goals Adopts rigid positions None Question 12 A negotiator who | impulsive and can be impatient would probably have what type of negotiation style? Warm Logical Dealer Tough None 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 delay To find a middle ground To find a win-win solution To yield None 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 find a middle ground To yield To delay To win None Question 15 Taking the five conflict management styles and considering there are two parties to a conflict, how many possible combinations are there? 25 28 30 26 None Question 16 What are connected stakeholders? as 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 Those who, by contractual or commercial relationships, have a significant stake In organizational activity and have a high level of influence on procurement negotiations None 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? Inform Make involve Engage None Question 18 What is the difference between an integrative approach and a distributive approach? 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 generally a short-term/once-off relationship with the other party (TOF), whilst a distributive approach is generally long-term/regular engagement. 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 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 None Question 19 Principled negotiation is based on four fundaments: people, interests, options, and... Scale Location Criteria Leverage None Question 20 According to the price plateau, which is the principled approach? Warm Tough Warm Easy Cold Tough Cold Easy None Question 21 What is wrong with using a ‘positional bargaining’ process? Select two that apply. Causes a win-loss approach Time-consuming Encourages stubbornness Expensive Question 22 Which of the below are tradeables? Select two that apply. Staff Place Price Payment Terms Question 23 What are the six bases of power? Expert, informationals, Referent, Legitimate, Position, Attitude Expert, informationals, Referent, Legitimate, Reward, Coercive Expert, informationals, Referent, Position, Legitimate, Reward Expert, informationals, Referent, Legitimate, Reward, Coercive None Question 24 Which tool can be used to understand the macro-environmental forces that influence the balance of power? STEEPLE The Supplier Positioning Model Customer Attractiveness and Purchasing Power Matrix Porter’s Five Forces None 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 2 & 3 Level 1: Macro Environment Level 2: Microenvironment Level 3: One-to-one Buyer/Supplier Dynamics None 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? Entertaining i.e, meats out, tips away Prompt payment Unfriendly staff False claims None Question 27 What is a spend cube? A data collection tool used to gather supper Information on spend A costing tool used to calculate budgets A three-dimensional model which displays a supplier's spend across the year 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 None Question 28 Which of the below is not a sign of trust in business relationships? Mutually agreed KPIs Sharing of information Supplier being encouraged to Innovate Reducing payment terms None Question 29 What is goodwill trust? Trust based on TOP professional qualifications Trust based on TOP experience Trust based on threats Trust based on knowing TOP has your interests and heart and will not behave opportunistically None Your comment matters to us😊. Please share your experience. Please proceed to view your grade. Fingers crossed🤗 Time's upTime is Up! 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