100% Pass Guaranteed Accurate L4M5 Answers 365 Days Free Updates [Q56-Q75]

Rate this post

100% Pass Guaranteed Accurate L4M5 Answers 365 Days Free Updates

L4M5 DUMPS Q&As with Explanations Verified & Correct Answers

CIPS L4M5 (Commercial Negotiation) Certification Exam is designed for procurement and supply chain professionals who want to enhance their negotiation skills and knowledge. Negotiation is a critical skill for professionals in the procurement and supply chain industry, as it involves the process of reaching an agreement with suppliers and vendors that meets the needs of the business while maintaining positive relationships with suppliers. The CIPS L4M5 Certification Exam helps professionals to build on their existing negotiation skills and develop new ones, allowing them to become more effective negotiators in their roles.

QUESTION 56
In a negotiation for a new contract, the supplier suggests the buyer to shorten payment period from 45 days to
15 days because they are investing in new facilitiesto expand the supply capacity. The buyer replies that she can only sign off the deal if the payment period is 30 days or more since it often takes at least 30 days for her company to collect the payment from customers. A permission from senior managementis required for this suggestion. In order to ensure that supplier understands the matter, she reiterates it throughout the meeting.
Which tactics is she using?
1. Outrageous initial demand
2. Salami slicing
3. Lack of authority
4. Broken record

1 and 3only

2 and 4 only

3 and 4 only

1 and 2 only

QUESTION 57
Which of the following is categorised as fixed cost?

Additional pallet hires due to higher demand in year-end season

Land rental paid in advance

Governments taxes

Raw materials for next year production

QUESTION 58
What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

Deadlocked

Lose lose

Win lose

Win win

QUESTION 59
Which of the following is the best description of direct cost?

Direct costs are only variable raw materials that constitute a product

Direct costs include raw materials, labour andoverheads

Direct costs include only raw materials and labour of making the final product

Direct costs include raw materials, labour and other expenses attributable to the final product

QUESTION 60
Should a buyer use closed questions in a negotiation?

Yes, because closed questions help to reconfirm certain facts

Yes, because they urge the supplier to provide more detailedExplanation::

No, the buyer should maximise the use of open questions

No, supplier will consider closed questions as provocation

QUESTION 61
There are no commitments in hypothetical questions. Is this statement true?

No, because the party who makes hypothetical questions cannot withdraw their proposals

No, because hypothetical questions are made explicitly to the other party

Yes, because hypothetical questions generate a specific response

Yes, because hypothetical questions only mention possible situations

QUESTION 62
Which type of power is considered the opposite of coercive power?

Referent power

Informational power

Reward power

Expert power

QUESTION 63
Which of the following is the true statement?

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

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

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

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

QUESTION 64
Which ofthe following is a true statement regarding macroeconomic factors and their potential impact on negotiations?

Macroeconomic factors always directly influence the negotiations

Expectations on macroeconomic prospect are always correct

Changes in macroeconomic factors may affect businesses and individuals differently

Macroeconomic factors cannot be influenced by anyone’s expectation or sentiment

QUESTION 65
Stalemate is morelikely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?

No, because the party who offers more variables will have lower bargaining power

Yes, because the negotiation will last endlessly if there aretoo many variables

No, because more variables will facilitate more possible negotiated outcomes

Yes, because more variables will cause more conflicts of interest

QUESTION 66
If the price of a good is above the equilibrium price, which of the following will happen?

The quantity demanded is equal to the quantity supplied and the price remains unchanged

There is a shortage (i.e. an excess demand) and the price will fall

There is a surplus (i.e. an excess supply) and the price will rise

There is a surplus (i.e. an excess supply) and the price will fall

QUESTION 67
XYZ Ltd is importing goods from overseas. They prefer to pay theirsupplier in their own currency. Which of the following is a true statement?

Supplier will receive less if XYZ’s currency appreciates

XYZ has an advantage in negotiating discounts if their currency appreciates

XYZ is able to pay less if their currency depreciates

XYZ has to pay more if their currency depreciates

QUESTION 68
Which of the following isthe definition of safety margin?

The difference between current or forecasted sales and sales at the break-even point

The amount of revenue that remains after subtracting costs directly associated with production

The production level at which total revenues for a product equal total expenses

The incremental money generated for each product/unit sold after deducting the variable costs

QUESTION 69
A procurement professional is preparing for anegotiation with supplier. She is setting targets for price which her company is seeking to achieve. Which of the following acronyms can help her identify limits before engaging in the negotiation?

MIL

RAQSCI

TIMWOOD

PPCA

QUESTION 70
Which of the following will positively affect reputational strength of an organisation? Select TWO that apply.

Adopting out-of-date technology

Weak internal coordination

Great gap between reputation and reality

High ethical standards

Strong customer focus

QUESTION 71
Where can we find the data on macroeconomics?
1. From trade journal
2. From supplier’s marketing catalogue
3. From stock exchange market
4. From government’s statistics

2 and 4 only

3 and 4 only

1 and 2 only

1 and 3 only

Explanation
Macroeconomic indicators are statistics or data readings that reflect the economic circumstances of a particular country, region or sector. They are used by analysts and governments to assess the current and future health of the economy and financial markets.
Macroeconomic indicators will vary in their meaning and the impact that they have on the economy, but broadly speaking there are two main types of indicator.
– Leading indicators, which forecast where an economy might be heading. They are often used by governments to implement policies because they represent the first phase of a new economic cycle. These include the yield curve, interest rates and share prices.
– Lagging indicators, which reflect an economy’s historical performance and only change after a trend has been established. They are used to confirm a trend is underway. These include gross domestic product (GDP), inflation and employment figures.
There is also the category of coincident indicators, but these are generally grouped in with lagging indicators as they either happen at the same time or after an economic shift.
The best macroeconomic indicator to watch will heavily depend on your personal preferences, what positions you are taking and which country your portfolio is focused on. However, there are some very common indicators that most traders and investors will keep an eye on.
For simplicity’s sake, we have split these out into leading and lagging indicators.
Top leading indicators:
1. The stock market
2. House prices
3. Bond yields
4. Production and manufacturing statistics
5. Retail sales
6. Interest rates
Top laggingindicators:
1. GDP growth rates
2. The Consumer Price Index (CPI) and inflation
3. Currency strength and stability
4. Labour market statistics
5. Commodity prices
A procurement professional may find stock market data from the security exchange, whilemost lagging indicators (such as GDP, CPI, unemployment rate, currency and inflation rate, etc) can be found from government statistics data.

QUESTION 72
Which of the following is NOT a barrier to entry in amonopolized market?

The costs of production make a single producer more efficient than a large number of producers

A single firm is very large

The government gives a single firm the exclusive right to produce some good

A key resource is owned by a single firm

Monopolies exist in many markets in real life for very different reasons:
Ownership of a Key Resource: When one company exerts sole control over a resource that is necessary for the production of a specific product,the market may become a monopoly. For example, the only medication deemed acceptable to treat a disease comes from a particular ingredient X, and knowledge of this ingredient X is owned by a single family owned company. The company can, therefore, be saidto have a monopoly over ingredient X that is needed to cure the disease because it is the only company that can produce a product deemed acceptable.
Government Franchise: In certain instances, a monopoly may be explicitly created by the government if it grants a single company, whether private or government-owned, the right to conduct business in a particular market. For example, when a national railways transportation service is created by the government, in most cases they are granted a monopoly on the operation of passenger trains in the country. As a result, other firms are only able to offer passenger train services with the cooperation and/or permission of the government-owned provider.
Intellectual Property Protection: Extending intellectual propertyprotection to a company in the form of patents and copyrights is yet another way in which monopolies are created. When a government does this, it is in fact giving a single company an exclusive right to provide a particular product / service to the market. Patents and copyrights work in providing owners of intellectual property with the right to act as an exclusive provider of a new product for a specific length of time. This creates a temporary monopoly in the market with regards to new products and services.
Natural Monopoly: A market may also become a monopoly simply because it may be more cost-effective for one company to serve the whole market than to have several smaller firms in competition with one another. A company with virtually unlimited economies of scale is referred to as a natural monopoly. Such firms become monopolies due to their position and size, which makes it impossible for new entrants in the market to compete price-wise. Natural monopolies are common in industries with high fixed costsand low marginal costs of operation such as providers of television, telephone, and internet services.
In this question, ‘A single firm is very large’ is not enough to tell whether this market is monopolistic.

QUESTION 73
IHL has beensupplying to XYZ Ltd for months. XYZ Ltd procurement manager Diana realises that the IHL’s input prices are dropping and this is a good time to re-negotiate the price of the contract. She invites IHL representative to XYZ headquarter to make a bargain on the current price. At the opening stage of the negotiation, Diana requests a 10% reduction in price with an increase in volume purchased.
Is Diana’s action appropriate in the opening phase?

Yes, because the negotiation should be done as quick as possible

Yes, because Diana’s proposal is a fair trade for both parties

No, because Diana should state exactly the increasing quantity

No, because Diana has put the markers down too soon

QUESTION 74
Rose is a senior buyer from a skiing equipment retailer. Rose is concerned about the current ski boot shortage and the number of invoicing problems from a key supplier. Shehas decided to have a video conference with Victor, CEO of the supplier. Initially, she intends to threaten Victor with contract termination unless he can improve the situation. However, she is a little wary of doing this as the switching costs are high. Eventually, she decides to seek solutions by encouraging the other party to offer their views and ideas. Rose also prepares some ideas to discuss with Victor. Which of the following is the persuasion method that Rose intends to use in the forthcoming conference?

Directive (push)

Persuasive reasoning (push)

Collaborative (pull)

Visionary (pull)

QUESTION 75
Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.

Both parties understand each other’s goals

Focusing onpositions

Conflict management skills

Constant shadowing and oversights

Emotional-based assessment

L4M5 dumps Exam Material with 165 Questions: https://www.dumpstorrent.com/L4M5-exam-dumps-torrent.html

100% Pass Guaranteed Accurate L4M5 Answers 365 Days Free Updates [Q56-Q75]

admin

Leave a Reply Cancel reply