L4M5 Questions Pass on Your First Attempt Dumps for CIPS Level 4 Diploma in Procurement and Supply Certified [Q35-Q51]

Rate this post

L4M5 Questions Pass on Your First Attempt Dumps for CIPS Level 4 Diploma in Procurement and Supply Certified

L4M5 Practice Test Pdf Exam Material

CIPS L4M5 exam is an essential qualification for procurement and supply chain professionals who want to advance their careers. It is a globally recognized qualification that demonstrates the candidate’s knowledge and skills in commercial negotiation. With this qualification, professionals can negotiate better contracts, manage supplier relationships effectively, and achieve better outcomes for their organizations.

CIPS L4M5 Certification Exam is recognized by employers around the world as a mark of excellence in commercial negotiation. Commercial Negotiation certification demonstrates that a candidate has the knowledge and skills necessary to succeed in negotiating commercial contracts and agreements. Employers often require this certification for individuals in procurement and supply chain management roles, as it is a key indicator of competence and professionalism.

NO.35 According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply.

Inspirational

Persuasion

Collaborative

Seeking commitment

Directive

:
According to the book ‘Influencing: Skills and techniques for business success’ by Fiona Dent and Mike Brent, there are two major influencing styles. Push tends to be directive. It tells, and is clear and resolute, but needs to be employed in situations where firmness is required because of difficulties that exist or weakness is evident. Pull is more participatory and collaborative. It seeks to incorporate everyone’s perspective. It can appear wishy-washy if not skilfully employed. That approach should be followed which is most likely to secure commitment and not mere compliance.
The two divisions can be further divided into four style categories: directive; persuasive reasoning; collaborative – team oriented, people oriented to inspire them with a vision. The directive style relies on your expertise and reputation being respected by others, and where there really does seem to be one answer. It is
“I” driven whereas persuasive reasoning is more “we” and issue driven. Directive styles can make the user appear as “a bull in a china shop”; persuasive reasoning can be portrayed as tough guy.
Collaborative influencing takes the “we” element further and seeks to mobilise everyone’s ideas in a journey of discovery. It may have the flavour of “I’m your best friend”, which may not go down too well. Visioning style is concerned to stir people’s emotions in support of achieving an objective. This last one has been used by demagogues to stir people’s hearts and minds for evil purposes as well as good.
A useful table offers the benefits, problems, words and body language associated with each style along with advice on when to use and when to avoid each. Cases and exercises illustrate these styles.
Empathy comes in for extended treatment with the definition of “standing in the other’s shoes”. This does not necessarily happen just intuitively, and therefore before a specific influencing effort there should be an intense effort to think about the other person or persons and to sense what it might feel like to be them – their hopes, fears, concerns, what turns them on, what turns them off, where are they coming from.

NO.36 Which of the following is the best description of direct cost?

Direct costs are only variable raw materials that constitute a product

Direct costs include raw materials, labour andoverheads

Direct costs include only raw materials and labour of making the final product

Direct costs include raw materials, labour and other expenses attributable to the final product

NO.37 Which of thefollowing should be the final step of a negotiation process if both parties cannot reach an agreement?

Reflecting on performance

Tempting TOP to reopen the negotiation

Asking TOP for another concession

Celebrating publicly about the deal

NO.38 Which of the following is mostlikely to be a reason why a supplier charges its customer higher price after it has reached the break-even point?

Supplier may need to open new facilities to meet increasing customer’s demand

Supplier may have high fixed cost – variable cost ratio

Supplier may want to encourage buyer’s demand

The supplier may have reached economy of scale

NO.39 Which of the following are examples ofnon-verbal negotiation? Select THREE that apply.

Asking the supplier to repeat their proposal

Getting messages across with facial expressions

/ Speaking softly with long pauses

Communicating with the other party by using gestures

Explaining to the supplier about the scope of the project

Using the body language

NO.40 Before engaging in a negotiation with a supplier of rechargeable lights, procurement team tries to visualise the breakdown of supplier’s costs to calculate its break-even point. They estimate that total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. The supplier charges its customer $180 per unit. Within its current capacity, this supplier will make a profit at which of the following?

More than 5,000 units are sold monthly

Exactly 5,000 units are sold per month

Exactly 1,500 units are sold monthly

More than 1,500 units are sold monthly

NO.41 A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation. What would be an appropriate response from the procurement manager?

Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating

Accept the offer as this would save time; a supplier visit and negotiation could be done at the same time

Decline the offer as it would take too much time to go and visit the supplier

Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage, as they will be in a familiar environment

NO.42 Which of the following are types of questions that are useful in opening and testing phases of a negotiation?
Select the TWO that apply.

Closed

Narrow

Probing

Leading

Open

NO.43 Jane is planning for a forthcoming negotiation with a key supplier. She has learned what are important to the supplier and what are important to her company from previous contracts between them. In order to avoid negotiation deadlocks, she has set up several concession plans. But Jane has little experience in dealing with suppliers and doesn’t know when to trade these concessions. When is the best time in a negotiation to trade concessions?

In the testing phase

In the proposing phase

At bargaining stage

At opening stage

NO.44 Which of the following statements about oligopoly isincorrect?

A few firms play an important role in the sale of a product

Oligopolistic firms recognize their interdependence

One firm’s behaviour is a function of what its rivals do

Prices in oligopoly are predicted to fluctuate widely and frequently

NO.45 The trust is built based on the other party’s professional qualifications or proven or certified technical capability or experience is known as…?

Goodwill trust

Contractual trust

Irrevocable Trust

Competence trust

NO.46 Which of the following is active listening?

Encouraging the other party to do all the talking

Agreeing with what the other party has to say

Summarising what has been said

Ignoring what the other party has to say

NO.47 Where can we find the data on macroeconomics?
1. From trade journal
2. From supplier’s marketing catalogue
3. From stock exchange market
4. From government’s statistics

2 and 4 only

3 and 4 only

1 and 2 only

1 and 3 only

Macroeconomic indicators are statistics or data readings that reflect the economic circumstances of a particular country, region or sector. They are used by analysts and governments to assess the current and future health of the economy and financial markets.
Macroeconomic indicators will vary in their meaning and the impact that they have on the economy, but broadly speaking there are two main types of indicator.
– Leading indicators, which forecast where an economy might be heading. They are often used by governments to implement policies because they represent the first phase of a new economic cycle. These include the yield curve, interest rates and share prices.
– Lagging indicators, which reflect an economy’s historical performance and only change after a trend has been established. They are used to confirm a trend is underway. These include gross domestic product (GDP), inflation and employment figures.
There is also the category of coincident indicators, but these are generally grouped in with lagging indicators as they either happen at the same time or after an economic shift.
The best macroeconomic indicator to watch will heavily depend on your personal preferences, what positions you are taking and which country your portfolio is focused on. However, there are some very common indicators that most traders and investors will keep an eye on.
For simplicity’s sake, we have split these out into leading and lagging indicators.
Top leading indicators:
1. The stock market
2. House prices
3. Bond yields
4. Production and manufacturing statistics
5. Retail sales
6. Interest rates
Top lagging indicators:
1. GDP growth rates
2. The Consumer Price Index (CPI) and inflation
3. Currency strength and stability
4. Labour market statistics
5. Commodity prices
A procurement professional may find stock market data from the security exchange, while most lagging indicators (such as GDP, CPI, unemployment rate, currency and inflation rate, etc) can be found from government statistics data.

NO.48 Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?

Web conferencing

Telephone

Teleconferencing

In-person meeting

NO.49 Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising transport costs have necessitated this increase. Which influencing tactic is the supplier using?

Rational persuasion

Inspirational appeal

Coalition

Personal appeal

NO.50 If the value of the British Pound in other currencies is strong, which of the following is most likely to occur?

The price of UK products in the UK will rise

The price of UK products in the UK will fall

The price of UK products abroad in foreign currency will fall

The price of UK products abroad in foreign currency will rise

NO.51 Which of the following are most likely to be sources of conflict that can emerge from the process of commercial negotiations? Select TWO that apply.

Differences in conflict management style

Differences in culture

Types of purchase

Standard terms and conditions

Line of the best fits