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Commercial Negotiation

Last Update Sep 19, 2025
Total Questions : 373 With Comprehensive Analysis

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Commercial Negotiation Questions and Answers

Questions 1

A procurement manager considers using an integrative negotiation approach with shortlisted suppliers. Which factor favours such an approach?

Options:

A.

There is an absence of common or joint goals between the parties

B.

The parties do not trust each other’s integrity

C.

Parties have a stronger motivation to work together than separately

D.

The parties understand the process but are unwilling to exchange data

Questions 2

When might a buyer decide to use a distributive approach to a negotiation with a supplier?

Options:

A.

When they are dependent on that supplier in the future

B.

When there are various suppliers in the market producing a similar product

C.

When procuring an item that is not strategic to the organisation

D.

When a working relationship is important in the future

Questions 3

How contribution is calculated in break-even analysis?

Options:

A.

Fixed costs divided by variable costs

B.

Variable costs subtracted from price

C.

Price minus fixed costs

D.

Variable costs subtracted from fixed costs

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