CIPS L4M5 Exam Practice Test Instant Access

Question 1

What are the potential sources of conflict between the buyer and supplier? Select TWO that apply:

AUnequal sharing of gains, risks, and costs with the supplier

BPersistent late payment of the supplier's invoices

CRequesting early supplier involvement

DPlanning scheduled visits to the supplier site

EScheduling agreed supplier delivery dates

Answer : A, B

Question 2

Which of the following types of question are likely to be the most effective to check facts in negotiations?

AHypothetical

BLeading

COpen

DClosed

Answer : D

Question 3

Which of the following are examples of variable costs?

A1 and 3 (Building and site rent and Raw materials expenditure)

B2 and 3 (Annual insurance premium and Raw materials expenditure)

C1 and 4 (Building and site rent and Delivery costs for materials)

D3 and 4 (Raw materials expenditure and Delivery costs for materials)

Answer : D

Question 4

Maria is a professional services category buyer within the National Health Service. Due to severe financial budget cutbacks the National Health Service is facing, the procurement team has been tasked with achieving cost savings so that funding available can be spent on patient care. Maria plans to achieve savings with one of her collaborative suppliers. Which negotiation approach should she undertake?

AWin-Lose

BLose-Lose

CWin-Perceived Win

DWin-Win

Answer : D

Question 5

A procurement manager has decided to bring in a junior member of their team to a negotiation meeting. Which of the following would be suitable roles for this junior member of the team?

A1 and 2 (Note taker and Expert)

B1 and 3 (Note taker and Observer)

C2 and 3 (Expert and Observer)

D3 and 4 (Observer and an unspecified fourth option - assumed error)

Answer : B

Question 6

Champion Toys (CT) is negotiating a large order of luxury toys with its supplier, Top Teds. CT has identified that lead times, order quantities, and delivery locations are tradeables that could be used in this negotiation. At which negotiation stage should CT introduce these tradeables?

AClosure

BProposing

COpening

DBargaining

Answer : D

Question 7

Which of the following types of relationship would possibly lead to a distributive negotiation?

AOutsourcing

BPartnership

CAlliance

DTransactional

Answer : D

CIPS L4M5 Commercial Negotiation Exam Practice Test