PASS GUARANTEED 2025 CIPS L4M5: COMMERCIAL NEGOTIATION–UPDATED NEW BRAINDUMPS FILES

Pass Guaranteed 2025 CIPS L4M5: Commercial Negotiation–Updated New Braindumps Files

Pass Guaranteed 2025 CIPS L4M5: Commercial Negotiation–Updated New Braindumps Files

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Tags: New L4M5 Braindumps Files, Exam L4M5 Papers, Exam L4M5 Preview, L4M5 Key Concepts, L4M5 Free Download

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CIPS Commercial Negotiation Sample Questions (Q79-Q84):

NEW QUESTION # 79
Ma Bell was the sole provider of landline telephoneservice to most of the US in 1980s. This is an example of...?

  • A. Monopolistic competition
  • B. Monopsony
  • C. Monopoly
  • D. Perfect competition

Answer: C

Explanation:
Explanation
A monopoly exists when only one company can supply an essential product or service in a givenregion because of significant barriers to entry for any competitor. The barriers can be legal, regulatory, economic, or geographic. Ma Bell case is an example of monopoly. The company was broken up in 1982.
A monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers.
Pure or perfect competition is a theoretical market structure in which the following criteria are met:
- All firms sell an identical product (the product is a "commodity" or "homogeneous").
- All firms are price takers (they cannot influence the market price of their product).
- Market share has no influence on prices.
- Buyers have complete or "perfect" information-in the past, presentand future-about the product being sold and the prices charged by each firm.
- Resources for such a labor are perfectly mobile.
- Firms can enter or exit the market without cost.
Monopolistic competition characterizes an industry in which many firms offerproducts or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors. Monopolistic competition is closely related to the business strategy of brand differentiation


NEW QUESTION # 80
Which of the following types of question are likely to be the most effective to check facts in negotiations?

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

Answer: D

Explanation:
Closed questions are designed to elicit specific, factual responses - typically "yes" or "no" or a brief piece of information. These are particularly useful when verifying details during negotiation. For example, asking
"Did you receive the revised schedule on Monday?" ensures clarity and reduces ambiguity.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 3.3 - Communication and Questioning Techniques in Negotiation


NEW QUESTION # 81
Telephone is most likely to be used for which of the following negotiations?

  • A. Complex one-off purchase
  • B. Routine transactions
  • C. Contract for purchasing a specialised product
  • D. High value contract

Answer: B

Explanation:
Many commercial negotiations could be considered routine or just not worth the investment for buyers, and using the phone can make more sense and can be more immediate.
LO 2, AC 2.4


NEW QUESTION # 82
A buying organisation with a low spend but the reputation for paying on-time. In order to increase buyer's leverage in negotiation with suppliers, which of the following should be a priority of this buyer?

  • A. Unavailable technical support
  • B. Spend concentration
  • C. Volume separation
  • D. Unclear tender award criteria

Answer: B

Explanation:
According to Paul Steele's 'The Seller's Perspective', customer can be classified into 4 categories as below:
To increase the leverage in negotiation, buyer may increase its attractiveness and/or increase spend value. In this scenario, the buyer is already attractive to supplier as it always pays on-time, but the spend is still low. So to have greater leverage, the buyer has to increase its spend volume by spend concentration. Spend concentration may take many forms as following:
- Vendor base reduction
- Volume pooling
- Volume redistribution
- Volume consolidation across categories
- Standardisation and harmonisation of specifications
- Forming purchasing consortia
LO 1, AC 1.3


NEW QUESTION # 83
When is the best time for buyer to propose the negotiation agenda to potential supplier?

  • A. At testing stage
  • B. Atconclusion stage
  • C. At preparation stage
  • D. At opening stage

Answer: C

Explanation:
A business negotiation agenda is a formal agreed upon list of goals to be achieved or items to be discussed in a particular order during a meeting or negotiation. Agendascan be formal and obvious, or informal and subtle in negotiations.
The agenda is one of the main structural elements of negotiation, in addition to such questions as site, identification of participants, and elements of timing. Together, they answer the who, what, when, and where questions. As with other aspects of negotiation, the agenda can be used either manipulatively to enhance leverage or to improve the prospects for agreement and the possibilities for mutual gain. In most cases, it will be used bothways, reflecting the nature of negotiation as a "mixed-motive" situation.
Although it can be instrumental to [research] volunteer as a sole source to write the agenda, in most cases it becomes a joint activity to construct a consensual basis for subsequent negotiation. In these situations, agenda-building becomes one of the pre-negotiation activities that set the tone for the relationship (Saunders,
1985). In other situations, the parties may engage in actual negotiation without a formal or written agenda.When this occurs, the risks and uncertainties may be high but the party who appreciates the importance of the informal agenda has a tremendous advantage.
Whether one plans it or not, during the course of negotiation the parties will discuss a finite set of issues in some sequence and from a particular perceptual framework. Consciousness of the universality and centrality of the agenda is prerequisite to guiding negotiation to a successful conclusion.


NEW QUESTION # 84
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