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CIPS L4M5 Exam Dumps - Actual Questions Answers

Commercial Negotiation

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  • Last Update: Aug 9, 2022
  • Number of Questions: 162 questions
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L4M5 Questions and Answers

Question # 1

An oil refinery plant imports much of its crude oil from overseas. A procurement manager in the refinery suggests that fixing the crude oil contract price for 36 monthswould be beneficial for the company. Would this be a right thing to do?

A.

Yes, financial budgeting task would be a lot easier with fixed pricing arrangement

B.

No, fixed price should be only applied to contracts that last 60 months or longer

C.

No, the refinery would not be able to reap the benefits from falling commodity price and currency rates

D.

Yes, the supplier would bear the risk when the material price increased

Question # 2

Which of the following types of questions should be used most often in the proposing phase?

A.

Hypothetical questions

B.

Probing questions

C.

Closed questions

D.

Open questions

Question # 3

Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract. Is this statement true?

A.

Yes, because all parties must have exactly the same goals in integrative negotiation

B.

No, because any party may leverage its own advantage during the contract

C.

Yes, because both parties have well understood each other's goals when they engage in collaborative negotiation

D.

No, because the parties will always find a compromise solution in integrative approach

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