L4M5 Practice Exam and Study Guides – Verified By TrainingDump Updated 165 Questions [Q58-Q79]

NO.58 At which stage in a negotiation would questions be asked to obtain missing information?

NO.59 Which type of power is considered the opposite of coercive power?

NO.60 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?

NO.61 One difference between perfect competition and monopolistic competition is that…?

NO.62 In a commercial negotiation, a procurement professional negotiates on his company’s behalf. The power of buying organisation is the only factor that influences the behaviours of the other party. Is this assumption true?

NO.63 In a detailed cost breakdown, a company has a salary cost of 9%, raw materials cost 51% and overheads cost
24%. Which of the following represents themark-up of that company?

NO.64 Which of the following are recognised techniques in contract negotiation? Select THREE that apply.

NO.65 Which of the following are effective approaches when procurement professionals negotiate with monopoly suppliers?
1. Delaying payment with monopoly suppliers as long as possible to increase bargaining power
2. Setting up stronger BATNA
3. Engaging in the negotiation with a distributive approach
4. Eliminating requirements in the specification that prioritises monopoly suppliers

NO.66 How contribution is calculated in break-even analysis?

NO.67 Which of the following is the best description of direct cost?

NO.68 Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms. Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply

NO.69 Which of the following may help the procurement professional increase expert power in commercial negotiation? Select TWO that apply.

NO.70 In addition to organisational power, personal power of each negotiator can influence the outcomes of a negotiation. A good negotiator can leverage different sources of power. Is this statement true?

NO.71 Which of the following are intangible values created by trust in business relationships? Select TWO that apply.

NO.72 Which of the following is categorised as fixed cost?

NO.73 Understanding supplier’s mark-up and margin can provide procurement professional a comprehensive insight into supplier’s net profits. Is this statement true?

NO.74 Buying organisation may increase its leverage with suppliers by concentrating spend. Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply.

NO.75 A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

NO.76 A public agency opens a tendering process for a road building project that lasts approximately 1 year. They post theirrequirements on public journal and receive some interests. After conducting due diligence process and selecting the lowest bidder, the project commences. However, the supplier complains that price of material increases because of a shortage of supply, thenthey demands an 5% uptick in contract value. The agency investigates the increment and sees that there is indeed a fluctuation in prices of supplier’s input. They are likely to accept the proposal, but they are also concerned that supplier may demand more. To avoid making another concession with the supplier, which of the following should be a priority action of the agency?

NO.77 There are no commitments in hypothetical questions. Is this statement true?

NO.78 Which of the following will shift the supply curve to the right?

NO.79 Which of the following are most likely to turn buying organisation into an unattractive customer in supplier’s perspective? Select TWO that apply.