CIPS L4M5 Commercial Negotiation Exam Practice Test

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Total 163 questions
Question 1

Katie is preparing a negotiation with a strategic supplier. Through deep market analysis, she realises that her company and the supplier have equal bargaining power. Via regular communication, Katie knows that both parties are arguing on amount of liquidated damages and neither party shall concede all of their requirements but some are negotiable. Katie and her counterpart from supplying company still desire a long-term relationship and hope that the meeting between them will be a solution for current situation. Which of the following is the most appropriate approach that Katie should adopt to achieve the above outcome?

Answer : C

Question 2

Which of the following will shift the supply curve to the right?

Answer : B

Question 3

Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply

Answer : B, D

Question 4

End users are the only stakeholders that are involved in the preparation of a negotiation. Is this statement true?

Answer : D

Question 5

Which of the following is the area where two or more negotiating parties may find common ground?

Answer : A

Question 6

An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?

Answer : C

Question 7

Before engaging in a negotiation with a supplier of rechargeable lights, procurement team tries to visualise the breakdown of supplier's costs to calculate its break-even point. They estimate that total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. The supplier charges its customer $180 per unit. Within its current capacity, this supplier will make a profit at which of the following?

Answer : A

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Total 163 questions