FREE PDF QUIZ NEWEST CIPS - L4M5 - CUSTOMIZABLE COMMERCIAL NEGOTIATION EXAM MODE

Free PDF Quiz Newest CIPS - L4M5 - Customizable Commercial Negotiation Exam Mode

Free PDF Quiz Newest CIPS - L4M5 - Customizable Commercial Negotiation Exam Mode

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Tags: Customizable L4M5 Exam Mode, New L4M5 Test Braindumps, L4M5 Test Discount Voucher, L4M5 Dumps Guide, L4M5 Reliable Test Camp

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CIPS L4M5 Certification Exam is designed for individuals who are involved in commercial negotiations, whether it be within their own organization or with external suppliers and partners. L4M5 exam covers a wide range of topics related to commercial negotiations, including negotiation strategies, tactics, and techniques, as well as legal and ethical considerations. It is a comprehensive exam that is designed to test the knowledge and skills of individuals in this field.

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CIPS Commercial Negotiation Sample Questions (Q256-Q261):

NEW QUESTION # 256
A buyer is preparing for an upcoming negotiation with a large supplier on a contract renewal price. The buyer has undertaken some analysis and is concerned that changes in the organisation's macro-environment over the last year will result in a price increase. The buyer's analysis has identified changes in which of the following?

  • A. Supplier power
  • B. Internal policies
  • C. Changes in demand
  • D. Exchange rates

Answer: D


NEW QUESTION # 257
Buyers should have the ability to analyse the costs of their purchases not only for determining their impact to their organisation's cost but also for the purpose of reducing them during commercial negotiations to contribute to the profitability of their organisation. One way of analysing costs is to classify them into direct and indirect costs. Which ONE of the following is an explanation of 'direct costs'?

  • A. Costs that are only related to manufacturing firms where raw materials are directly converted into specific product units
  • B. Costs of labour and expenses incurred directly whether or not the production fluctuates owing to demand or downtime
  • C. Costs that are connected with materials and labour, excluding expenses used directly in manufacturing products
  • D. Costs of materials, labour, and other expenses that are directly identified with manufactured units of a product

Answer: D


NEW QUESTION # 258
John Browne, a junior buyer for a corporation, is analysing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research. Should John consider the foreign exchange rates?

  • A. Yes, only if the organisation can handle foreign currencies in their accounts
  • B. No, exchange rates only apply to the national economy
  • C. Yes, as they can affect profit and turnover
  • D. No, as they only affect the bank's interest rates for loans

Answer: C


NEW QUESTION # 259
Telephone is most likely to be used for which of the following negotiations?

  • A. Contract for purchasing a specialised product
  • B. Complex one-off purchase
  • C. High value contract
  • D. Routinetransactions

Answer: D

Explanation:
Explanation
Many commercial negotiations could be considered routine or just not worth the investment for buyers, and using the phone can make more sense and can be more immediate.
LO 2, AC 2.4


NEW QUESTION # 260
Personal power is only used in distributive approach. Is this statement true?

  • A. Yes, because one party will abuse coercive power to maximise the gain
  • B. Yes, because only distributive approach to negotiation requires strong personal power
  • C. No, because only organisational power will optimise the negotiation outcomes
  • D. No, because personal power can be veryhelpful in integrative approach

Answer: D

Explanation:
Explanation
Power, or more precisely perceptions of power,are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective.
When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven's power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement LO 1, AC 1.3


NEW QUESTION # 261
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