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L4M5 Latest Braindumps Book | Sample L4M5 Questions

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CIPS Commercial Negotiation Sample Questions (Q88-Q93):

NEW QUESTION # 88
According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?

A. Gambling
B. Persuasion
C. Litigation
D. Negotiation

Answer: D

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 # 89
What letter R in the acronym SMART stands for?

A. Random
B. Risk-free
C. Recommended
D. Relevant

Answer: D

Explanation:
SMART is an acronym that you can use to guide your goal setting. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound A student met this question in the L4M5 exam. SMART is mentioned primarily in L4M3 Commercial Contracting.
LO: Unknown, AC: Unknown

NEW QUESTION # 90
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. Agree with supplier's payment period without any further demand
C. Contend on the normal payment period
D. Demand for a discount without any other concessions

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 # 91
Which of the following types of questions are likely to be the most effective to check facts in negotiations?

A. Closed
B. Open
C. Hypothetical
D. Leading

Answer: A

Explanation:
Closed questions are useful for verifying facts, as they prompt specific, concise responses. These questions allow the negotiator to confirm details without ambiguity, which is crucial for clarity in negotiation settings, as highlighted in CIPS's guidelines on questioning techniques.

NEW QUESTION # 92
Personal power is only used in distributive approach. Is this statement true?

A. Yes, because one party will abuse coercive power to maximise the gain
B. No, because personal power can be very helpful in integrative approach
C. Yes, because only distributive approach to negotiation requires strong personal power
D. No, because only organisational power will optimise the negotiation outcomes

Answer: B

Explanation:
Power, or more precisely perceptions of power, are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective.
When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven's power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement LO 1, AC 1.3

NEW QUESTION # 93
......

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