Online Access Free L4M5 Practice Test

A building firm has been awarded a contract to construct an office block. Which is a direct cost?

• A.Cost of office space
• B.Cost of legal fees
• C.Cost of materials
• D.Cost of insurance

After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers. Which of the following will be the objective of XYZ procurement team in this negotiation?

• A.Seeking a quick middle-ground position
• B.Postponing the issue
• C.Yielding the supplier's point of view
• D.Confronting and trying to find a creative solution immediately

Which of the following is the area where two or more negotiating parties may find common ground?

• A.Walk away area
• B.Zone of potential agreement
• C.Best alternative to a negotiated agreement
• D.Zone of proximal development

A supplier can produce a product for $160 and sells it for $240, making $80 profit. What is the mark-up profit percentage?

• A.159%
• B.67%
• C.33%
• D.50%

Which of the following is a source of information on microeconomic factors?

• A.Published economic indices such as the Retail Price Index (RPI)
• B.Data published by the financial markets and commodity markets and exchanges
• C.Analysts published in the mainstream and financial media
• D.The marketing and corporate communications of suppliers