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L4M5 Practice Questions

Commercial Negotiation Exam Practice Test


Total 79 Pages
Total 395 Questions

L4M5 Practice Questions

Question# 1

Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier? 1. Spend candlesticks 2. Spend tree 3. Aggregate expenditure model 4. Spend waterfall
Choose the Choices:


Question# 2

Premium pricing strategies used by suppliers are characterised by which of the following? Select TWO that apply.
Choose the Choices:


Question# 3

A purchasing manager is having a negotiation with a supplier to extend the duration of the contract. In order to persuade the supplier to cut the cost by 10%, she promises to shorten the payment period from 45 days to 30 days for each delivery. The supplier's representative does not agree the offer and clearly states that his proposed price is already lower than the market price. The purchasing manager has used which type of power?
Choose the Choices:


Question# 4

According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?
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Question# 5

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
Choose the Choices:


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