Online Access Free L4M5 Exam Questions

"Finding the middle ground between buyer and supplier is a satisfactory way to complete contract negotiations." Is this statement correct?

• A.No, because it will damage your credibility in negotiations
• B.Yes, because both parties get as close to their result as possible
• C.No, because the other party may take advantage if you move position
• D.Yes, because the buyer will always move further than the supplier

Which of the following are examples of variable costs?
Building and site rent
Annual insurance premium
Raw materials expenditure
Delivery costs for materials

• A.3 and 4
• B.2 and 3
• C.1 and 4
• D.1 and 3

According French and Raven's base model, which of the following are sources of personal power that can be used in commercial negotiation? Select THREE that apply.

• A.Expert power
• B.Coercive power
• C.Trademark power
• D.Legitimate power
• E.Purchasing spend power
• F.Competitive power

The buyer's bargaining power tends to be relatively higher than supplier's bargaining power in which of the following circumstances?

• A.The buyer is large in size relative to its suppliers
• B.The buyer demand is so urgent that it can't be postponed
• C.The buyer's spend takes up a small proportion of supplier revenue
• D.The buyer does not have the option to move to an alternative supplier

A buyer is leading a negotiation with a supplier for plumbing parts for a large construction project with a five-year term. The buyer knows copper pipe costs will reduce after year two, while plastic component costs are forecast to rise significantly. In the negotiation, the buyer should seek to...

• A.Fix the costs of the components within the contract after the third year
• B.Obtain a variable cost for copper and fix the remaining cost components
• C.Obtain a variable price for all components within the contract
• D.Fix the costs of all components for the full five years