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CIPS L4M5 - Commercial Negotiation

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Total 317 questions

Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.

A.

Avoidance of submitting important documentations

B.

Reduced response time during contract performance

C.

Resolving some conditions that would otherwise have them competing for resources

D.

Subjective assessment of performance

E.

Exploring a disagreement to learn from each other's insights

Which of the following are intangible values created by trust in business relationships? Select TWO that apply.

A.

Higher revenues

B.

Positive feedbacks from customers

C.

More focus on core business

D.

Increasing response time to request

E.

Frequent conflict escalation

Which of the following are most likely to help buyer become preferred customer in supplier's perspective? Select TWO that apply.

A.

Onerous supplier terms and conditions

B.

Compliance with agreed repair lead time

C.

Shorter payment period

D.

Reduction in delivery errors

E.

Ensuring an increased number of repeat orders

Which type of question should be used to receive affirmation on statement?

A.

Open

B.

Closed

C.

Leading

D.

Narrow

A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

A.

Leading

B.

Hypothetic

C.

Reflective

D.

Multiple

A negotiation is coming to the end. Both parties haven't had any official commitments. Right before leaving the room, the buyer strongly disagrees with supplier's set up prices and requests a discount. The supplier doesn't reply but nods and smiles. Can the buyer consider these actions as an acceptance?

A.

Yes, because smiling shows supplier's readiness in signing the deal off

B.

No, because nodding and smiling are etiquette of polite rejection

C.

No, because nodding and smiling are not clear signs of neither acceptance nor rejection

D.

Yes, because negotiator should rely on non-verbal communications only

Citywide Developments Ltd (CDL) is a construction programme management company that delivers high-value property development schemes. CDL uses named consultant design services in contracts. Recently, consultancy day rates have increased. Which of the following tradeable concessions could CDL offer when negotiating with suppliers to achieve lower rates, without lowering service quality?

A.

Accept unqualified trainee consultants

B.

Reduce the volume-based rate discounts

C.

Offer a shorter consultant working day

D.

Remove the requirement for the named personnel

In which of the following scenarios could you adopt a distributive-based negotiation approach?

A.

When asking for changes to the provision of a strategic service provided by a monopoly supplier

B.

When determining costs to incorporate a unique product into your design with the patent holder

C.

When your organisation is dependent on a supplier for delivery of a large contract in the future

D.

When procuring a widely available commodity item which is not strategic to your organisation

Which of the following is the true statement?

A.

External stakeholders such as suppliers can largely influence an organisation's procurement negotiations

B.

Internal stakeholder support will be important for both negotiation and contract performance

C.

All connected stakeholders have a low level of impact on procurement negotiations

D.

Commercial negotiation objectives should be driven by just the instincts of procurement

Which of the following is important during the proposing stage of a negotiation?

A.

Not making concessions to the other party

B.

Narrowing the range of options

C.

Attempting to close down any discussions

D.

Persuading the other party to accept your proposal