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CIPS Commercial Negotiation – L4M5 paper *9.
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1.
Which of the following are sources of conflict that are likely to arise in a negotiation process? Select THREE that apply
2.
An organisation has encountered a conflict with one of its critical suppliers. According to the organisation’s procurement, the conflict is caused by poor quality materials that the supplier has been providing. According to the information above, what is the most suitable approach the procurement manager can use to resolve conflict?
3.
In which of the following situations is a position-based negotiation suitable to be used by the parties in a negotiation?
1. Critical product with high market complexity
2. Low-value product with an ease of switching
3. Supplier is ahead of others in terms of technical expertise
4. The supply contract is a one-off requirement of insignificant value
4.
Giving away something valuable in a negotiation refers to...
5.
Stakeholder engagement is always necessary in every negotiation. Is this statement correct?
6.
In contract management, payments and use of incentive ensures which of the following?
1. Improved performance
2. Competitive benchmarking
3. Supplier motivation
4. Customer loyalty
7.
Actions taken by the buyer to improve supplier’s capacity, capability and performance is known
8.
Providing training and preparation in the pre-negotiation phase is an important step to achieving a positive negotiation outcome. Training and preparation should encompass which of the following elements? Select THREE that apply.
9.
When undertaking high risk and high value negotiation, a high skilled and experienced negotiation team is required for which of the following reasons. Select TWO that apply.
10.
A buyer is seeking to use a conflict management style which takes into account its own concerns and those of the supplying organisation. Is ‘accommodating’ the right conflict management style to use in this situation?
11.
A buying organisation is about to enter into a negotiation meeting with one of its strategic suppliers. They are seeking to reach an agreement for the supply of a raw material which is critical to the buyer’s operation process. Both parties have agreed to use a negotiation approach which will allow them to focus on areas of common ground and mutual benefits. Is distributive negotiation the right approach to be used by the parties?
12.
A definition of a commercial negotiation is that it is aimed at achieving which ONE of the following?
13.
Which ONE of the following conditions is typical of a collaborative negotiation?
14.
Which ONE of the following is the best example of a BATNA (best alternative to a negotiated agreement)?
15.
Most negotiations require the buyer to be having an alternative for in case the negotiation doesn’t go as planned, normally called best alternative to the negotiated agreement (BATNA). Which of the following is not an advantage of having a best alternative to the negotiated agreement?
16.
Which of the following are the elements of a principled negotiation that both parties should take into account to establish a long term working relationship?
1. Separate people from the problem
2. Use of bargaining power to extract the best value
3. Focusing more on positions rather than the interest of the parties
4. Devising many options for mutual gains before deciding what to do
1. Separate people from the problem
2. Use of bargaining power to extract the best value
3. Focusing more on positions rather than the interest of the parties
4. Devising many options for mutual gains before deciding what to do
17.
Distributive negotiations are most typically associated with which ONE of the following?
18.
A collaborative negotiation requires both parties to devise a range of options that will be useful in identifying a mutually beneficial solution. Which of the following may be the obstacles to identifying the options for problem solving? Select the TWO that apply.
1. Researching more about the problems and the concerns of the other party
2. Taking the final decisions without considering other possible options
3. Asking effective question to gain clarity on what the other party’s position is
4. Using power to limit the options generated by the other party
19.
In a collaborative negotiation the ideal outcome is...
20.
Which of the following is a benefit of team negotiating compared to negotiating individually?
1. Ability to influence the other party
2. Ease of choice of location between the parties
3. Involvement of wider range of experts
4. Enhanced decision making
21.
Which of the following are the sources of personal power in a negotiation? Select the THREE that apply.
22.
Which of the following describes the power that arises from an individual’s high levels of skills and knowledge?
23.
A logistics company has a preferred supplier for the replacement of its vehicle fleet. The preferred supplier knows it is the only organisation that can meet the logistics company’s needs, in terms of the type of vehicle required the volume of vehicles required and in the timescales required. Which ONE of the following would be a BATNA (best alternative to a negotiated agreement) for the logistics company to use as leverage in the negotiation?
24.
Which of the following may enhance the buyer’s attractiveness to the supplier organisation? Select the TWO that apply.
25.
Which ONE of the following is a characteristic of an arm’s length relationship between two parties?
26.
A category manager is having an unsuccessful negotiation with a supplier, and it has decided to adopt a different approach to the negotiation. The category manager reminds the supplier of its contractual obligations and says ‘if we cannot reach agreement here today’ do not forget that i can serve notice to terminate the contract. This is an example of which type of power?
27.
A procurement professional is able to influence the outcome of a negotiation due to their superior knowledge and because they have threatened to cancel the contract if they are unhappy with the outcome. Which of the following sources of personal power are being used?
1. Reward power
2. Referent power
3. Coercive power
4. Expert power
28.
In which ONE of the following situations will a collaborative negotiation be most suitable to be used by the parties?
29.
Which of the following are examples of direct costs for a manufacturing organisation? Select the TWO that apply.
30.
Costs that are affected by the change in level of output are known are known as...
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