LATEST L4M5 EXAM TORRENT MUST BE A GREAT BEGINNING TO PREPARE FOR YOUR EXAM - PASS4CRAM

Latest L4M5 Exam Torrent Must Be a Great Beginning to Prepare for Your Exam - Pass4cram

Latest L4M5 Exam Torrent Must Be a Great Beginning to Prepare for Your Exam - Pass4cram

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Pass4cram offers CIPS L4M5 practice tests for the evaluation of Commercial Negotiation exam preparation. CIPS L4M5 practice test is compatible with all operating systems, including iOS, Mac, and Windows. Because this is a browser-based L4M5 Practice Test, there is no need for installation.

CIPS Commercial Negotiation Sample Questions (Q77-Q82):

NEW QUESTION # 77
Telephone is most likely to be used for which of the following negotiations?

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

Answer: C

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 # 78
Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power. The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?

  • A. Shorten payment period but ask for a discount
  • B. Demand for a discount without any other concessions
  • C. Agree with supplier's payment period without any further demand
  • D. Contend on the normal payment period

Answer: A

Explanation:
In the scenario, the length of payment period is particularly important to the supplier as they are investing new facilities. Otherwise, the buyer's company has a positive cash flow position and budget is available for a shorter payment terms. So this tradeable (payment period) is important to supplier but it is not a significant problem with the buyer. This tradeable will fall within 'Easy concession to trade' quadrant in the following matrix:
Table Description automatically generated

If the tradeable fall within this quadrant, Sally should shorten the payment period in supplier's favour and try to win as many concessions as possible in return. Asking for a discount may be a reasonable trade-off.
LO 2, AC 2.3


NEW QUESTION # 79
When prices of input materials increase, supply curve shifts to the left while demand remains stable. The shift of supply will tend to cause which of the following?

  • A. A decrease in the equilibrium price and quantity
  • B. A decrease in the equilibrium price and an increase in the equilibrium quantity
  • C. An increase in the equilibrium price and quantity
  • D. An increase in the equilibrium price and a decrease in the equilibrium quantity

Answer: D

Explanation:
:
The case in the question is illustrated as below:
Diagram Description automatically generated

The equilibrium price initially at P0 with quantity Q0, when supply curve shifts to the left, it will converge with demand curve at new equilibrium point with price P1 and quantity Q1. As you can see from the graph, P1 is greater than P0 and Q1 is smaller than Q0.


NEW QUESTION # 80
Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?

  • A. Keep these people inform through general communication media
  • B. Engage and consult with them regularly
  • C. Engage and keep them satisfied
  • D. Manage them closely

Answer: C

Explanation:
Investors or shareholders who have high level of influence but low interest belong to 'Keep satisfied' quadrant of Mendelow's Stakeholder Matrix.
You may read 2 versions from L4M1 and L4M5 here:

Table Description automatically generated

LO 1, AC 1.1


NEW QUESTION # 81
Procurement gets involved in negotiating purchase requisitions only when there is a value analysis to ensure that only value-adding aspects are included. Is this statement true?

  • A. No, purchasing can negotiate other details of the purchase requisition even where value analysis is absent
  • B. Yes, the role of purchasing is to add value to the purchase, and therefore every purchase requisition must go through a team value analysis
  • C. Yes, value analysis is the single most important responsibility of procurement in the processing of repeat requisitions
  • D. No, value analysis is a very technical process that requires the expertise of engineering and financial analysts

Answer: A

Explanation:
Procurement can negotiate various aspects of a purchase requisition even without a formal value analysis.
While value analysis can enhance cost-effectiveness, procurement professionals often negotiate on pricing, terms, and conditions to add value independently of value analysis, as per CIPS's guidelines on procurement flexibility in negotiations.


NEW QUESTION # 82
......

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