Free Commercial Negotiation Exam L4M5 Exam Practice Test

Neville is a senior procurement specialist in a automaker. He has good relationship with his team mates and other departments because of his amazing purchasing skills and kindness. Which of the following sources of power is Neville likely to possess?

• Reward
  
• Referent
  
• Legitimate
  
• Coercive
  

Which of the following are rules of attentive listening? Select TWO that apply.

• Prepare for what to say next
  
• React to the person who is speaking
  
• Listen deliberately
  
• Only focus on verbal cues
  
• Do not interrupt when the other party is speaking
  

Should a buyer use closed questions in a negotiation?

• Yes, because closed questions help to reconfirm certain facts
  
• Yes, because they urge the supplier to provide more detailed Explanation:
  
• No, the buyer should maximise the use of open questions
  
• No, supplier will consider closed questions as provocation
  

From the principled point of view about negotiation environment, which of the following is a true statement?

• Advantage gained from uncomfortable negotiation environment is likely to last long after the negotiation
  
• The room layout can be seen as a source of tactical advantage
  
• Home advantage should not be exploited to win a temporary advantage
  
• There is no ideal negotiation environment in real life
  

An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons why negotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

• Underlying interests of TOP are overlooked
  
• MIL objectives are well established
  
• Both parties focus on common interests
  
• Buyer helps to create a co-operative atmosphere
  
• Unachievable objectives were set up
  

Which of the following is the most appropriate pricing arrangement in contracts where major inputs are commodities?

• Price adjustment mechanism
  
• Cost reimbursable pricing arrangement
  
• Standard schedule of rates
  
• Fixed pricing arrangement
  

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
  

Which of the following are hardball tactics in negotiations? Select TWO that apply.

• Expand the pie
  
• Snow job
  
• Good cop, bad cop
  
• Sweetening the deal
  
• Bridging
  

Which of the following are signs indicating that TOP is using coercive power in commercial negotiation? Select TWO that apply.

• Demonstrating fairness and respect
  
• Withdrawal of benefits
  
• Use of guilt
  
• Technical expertise
  
• Positive references
  

Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.

• Complex idea comprehension
  
• Controlling one's own emotions
  
• Perceiving how others feel
  
• Reasoning and problem solving
  Abstract thinking