Online Access Free L4M5 Practice Test

Which of the following are most likely to be macro factors that may influence the balance of power in commercial negotiation? Select THREE that apply.

• A.Number of substitute products or services
• B.Disruptive technologies
• C.Intensity of competition in a industry
• D.Economic growth rates
• E.Purchasing spend volume
• F.Sustainability of natural resources

Which of the following are examples of non-verbal negotiation? Select THREE that apply.

• A.Using the body language
• B.Explaining to the supplier about the scope of the project
• C.Asking the supplier to repeat their proposal
• D./ Speaking softly with long pauses
• E.Getting messages across with facial expressions
• F.Communicating with the other party by using gestures

Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

• A.Conducting transparent procurement process
• B.Allowing supplier to involve in early product development
• C.Commercial espionage
• D.Tendency to blame other party
• E.Over-inflated contingency funds

An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?

• A.No, because negotiating over telephone is enough to collect information on supplier's capability
• B.Yes, because the visit would increase the buyer's bargaining power
• C.No, because the travel would incur unnecessary costs
• D.Yes, because this is an opportunity to assess the supplier's capacity

A procurement professional is negotiating with a supplier on cleaning service. She realises that there are huge cost-saving opportunities if the supplier agrees to reduce its mark-up and unnecessary employee benefits.
Supplier's mark-up and employee benefits are examples of which of the following?

• A.Spend tree
• B.Spend waterfall
• C.Addressable spend
• D.Spend cube