[UPDATED 2023] CIPS L4M5 Questions Prepare with Free Demo of PDF [Q74-Q95]

[UPDATED 2023] CIPS L4M5 Questions Prepare with Free Demo of PDF [Q74-Q95]

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[UPDATED 2023] CIPS L4M5 Questions Prepare with Free Demo of PDF

NEW 2023 Certification Sample Questions L4M5 Dumps & Practice Exam

CIPS L4M5 exam covers a wide range of topics related to commercial negotiation, including negotiation planning, strategies, tactics, and techniques. Candidates are also tested on their understanding of the legal and ethical considerations that come into play during negotiations, as well as their ability to manage conflicts and build long-term relationships with suppliers. L4M5 exam is suitable for professionals who are involved in procurement, supply chain management, and contract management roles, as well as those who are looking to advance their careers in these areas.

Q74. Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?

Web conferencing

Telephone

Teleconferencing

In-person meeting

Q75. Which of the following are factors that might shift the demand curve for a consumer good to the right?
1. Prices of complementary goods decrease
2. Price of the consumer good decreases
3. Customers’ expectation of higher prices in the future
4. Consumer tastes shift toward substitute products

3 and 4 only

4 and 2 only

1 and 3 only

1 and 2 only

Q76. A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits.
Supplier’s mark-up and employee benefits are examples of which of the following?

Spend waterfall

Spend cube

Spend tree

Addressable spend

Q77. 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.

Q78. After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers.Which of the following will be the objective of XYZ procurement team in this negotiation?

Yielding the supplier’s point of view

Postponing the issue

Seeking a quick middle-ground position

Confronting and trying to find a creative solution immediately

Q79. Which of the following are most likely to be macro factorsthat may influence the balance of power in commercial negotiation? Select THREE that apply.

Economic growth rates

Disruptive technologies

Purchasing spend volume

Sustainability of natural resources

Intensity of competition in a industry

Number of substitute products or services

Q80. JCB is a large manufacturer of heavy machinery. The CPO is going to a negotiation with a Chinese supplier about procuring some major components. He is wondering about balance of power in the negotiation. Which of the following micro factors are most likely to shift the balance of power towards the buying organisation in this commercial negotiation? Select TWO that apply

Buyers purchase in small volumes

Suppliers are more concentrated than buyer

Eruption of epidemic in supply market

JCB’s switching costs are low

These components are highly standardised

Q81. Which of the following are the most typical characteristics of integrative approach to negotiation? Select TWO that apply.

Positional-based

Claiming value

Interest-based

Short-term wins

Creating more value

Q82. Which of the following are most likely to be sources of conflict that can emerge from the process of commercial negotiations? Select TWO that apply.

Differences in conflict management style

Differences in culture

Types of purchase

Standard terms and conditions

Line of the best fits

Q83. Jane is planning for a forthcoming negotiation with a key supplier. She has learned what are important to the supplier and what are important to her company from previous contracts between them. In order to avoid negotiation deadlocks, she has set up several concession plans. But Jane has little experience in dealing with suppliers and doesn’t know when to trade these concessions. When is the best time in a negotiation to trade concessions?

In the testing phase

In the proposing phase

At bargaining stage

At opening stage

Q84. 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

Q85. Which of the following are most likely to turn buying organisation into an unattractive customer in supplier’s perspective? Select TWO that apply.

Demands for kickback

Reduced paperwork in procurement processes

Adopting clear and concise CSR policies

Unclear tender award criteria

Using SRM technology

Q86. Ma Bell was the sole provider of landline telephoneservice to most of the US in 1980s. This is an example of…?

Monopsony

Monopoly

Monopolistic competition

Perfect competition

Q87. Which of the following are examples of connected stakeholders in a private organisation? Select TWO that apply.

Customers

Local community

Media

Government

Shareholders

Q88. Which of the following are examples ofnon-verbal negotiation? Select THREE that apply.

Asking the supplier to repeat their proposal

Getting messages across with facial expressions

/ Speaking softly with long pauses

Communicating with the other party by using gestures

Explaining to the supplier about the scope of the project

Using the body language

Q89. Which of the following will help to indicate personality preferences in four dimensions?

Thomas-Kilmann Conflict Resolution model

Intelligence quotient

Mill’s RESPECT mnemonic

Myers-Briggs Type Indicator

Q90. Which of the following are most likely to beindirect costs of a garment manufacturer? Select THREE that apply.

Packaging material

Textile

Zips pads

Maintenance materials

Utilities

Depreciation of machinery

Q91. Which of the following is the first step in the development of negotiation strategies?

Determining your BATNA

Developing scenarios around possible options

Recognising TOP’sneeds and wants

Defining overarching objectives

Q92. 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

Q93. 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?

Contend on the normal payment period

Shorten payment period but ask for a discount

Agree with supplier’s payment period without anyfurther demand

Demand for a discount without any other concessions