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100% Pass CIPS - Efficient L4M5 - Commercial Negotiation Exam Experience
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CIPS Commercial Negotiation Sample Questions (Q281-Q286):
NEW QUESTION # 281
Finding the middle ground between buyer and supplier by moving towards each other's position is a satisfactory way to complete contract negotiations and maintain ongoing relations for future negotiations. Is this statement correct?
- A. Yes, because the buyer will always move further than the supplier
- B. No, because it will damage your credibility in contract negotiations
- C. Yes, because both parties will get as close to their end result as possible
- D. No, because the other party will take advantage if you move your position
Answer: C
Explanation:
Finding a middle ground, also known ascompromise or convergence, is a hallmark of collaborative or integrative negotiation. It allows both parties to secure partial wins, supports longer-term relationships, and promotes ongoing goodwill for future dealings.
"Negotiators must balance assertiveness with cooperation. Meeting halfway can lead to agreements that meet minimum needs of both parties while preserving the relationship." (L4M5 Commercial Negotiation, 2nd edition, Section 1.1 - Collaborative Approaches to Negotiation)
NEW QUESTION # 282
Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.
- A. Commercial espionage
- B. Conducting transparent procurement process
- C. Tendency to blame other party
- D. Over-inflated contingency funds
- E. Allowing supplier to involve in early product development
Answer: B,E
Explanation:
Trust-building behaviours are as following:
Joint-effort issue resolution
Open sharing of information
Open and honest discussion on root cause of failures
Joint planning focusing on value for money and risk sharing
Commercial transparency and co-proposition of cost reduction and service improvement programmes Joint recognition and celebration of successes
NEW QUESTION # 283
Which of the following are most likely to be sources of conflict that can emerge from the content of commercial negotiations? Select TWO that apply.
- A. Requisition
- B. Cultural differences
- C. Payment terms
- D. Framework arrangement
- E. Contract governing law
Answer: C,E
Explanation:
There are multiple sources of divergent positions that can arise in situations where money is exchange for goods and services. There are 2 different types of sources. Those that arise from the content or subject matter of the negotiation (what is being negotiated) and those that arise from the process of negotiation (how it is being negotiated).
Sources of divergent position - the content of negotiation:
Table Description automatically generated
Cultural differences are the source of conflict in the process of negotiation.
Requisition is an internal document raised by user or store to communicate to procurement the need to buy the product or service specified. This is merely a internal document.
Framework arrangement is a rather loose set-up, without any legal standing. It usually occurs when an organisation has decided for itself to limit the number of suppliers it is willing to work with and, through a purely internal process, sets up an approved list of such suppliers.
LO 1, AC 1.1
NEW QUESTION # 284
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. Hypothetical
- B. Leading
- C. Multiple
- D. Reflective
Answer: A
NEW QUESTION # 285
According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?
- A. Litigation
- B. Persuasion
- C. Negotiation
- D. Gambling
Answer: C
Explanation:
:
Professor Gavin Kennedy highlights that we need to distinguish negotiation from other forms of decision- making by focusing on what is unique about it (the voluntary exchange) and not shared by other techniques such as persuasion, gambling (e.g., coin tossing), command decision, instruction, litigation and coercion.
NEW QUESTION # 286
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