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L4M5 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

Question # 64

Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?

Options:

A.

Yes, characteristics include risk management and strategic planning

B.

No, this can be classified as adversarial

C.

Yes, characteristics include arm’s length transactions and minimal communication

D.

No, collaboration does not require commitments from either side

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Question # 65

Colin Smith is preparing for a negotiation with a supplier that provides a chemical for grass fertiliser. Colin has been given an action to secure a commercial deal that achieves his organisation’s objective of ‘ethical and sustainable procurement.’ As part of his negotiation plan, Colin is using the ‘must, intend, like (MIL)’ framework to prepare for the negotiation. Colin would categorise his organisation’s objective within the negotiation plan as:

Options:

A.

Likely to have

B.

Intend to have

C.

Must have

D.

Like to have

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Question # 66

At the first stage of CIPS Procurement and Supply Cycle (Understand need), which of the following is the most important duty of procurement professional?

Options:

A.

Demand management

B.

Evaluating the interests from suppliers

C.

Undertaking 'reverse marketing'

D.

Deciding whether RFQ or ITT should be used

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Question # 67

Mike is a junior buyer who has been working for a manufacturing organisation for two years, specializing in purchasing research. Over this time, he has built good relationships within his team and with other departments. Which of the following sources of power is Mike most likely to possess?

Options:

A.

Referent

B.

Reward

C.

Position

D.

Coercive

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Question # 68

There are many factors which will influence supplier pricing decisions. Which of the following are external factors that may apply? Select THREE that apply:

Options:

A.

Customer perceptions of value

B.

Cost of production

C.

Price elasticity of demand

D.

Environmental factors affecting the cost of raw materials

E.

Where the product is in its ‘lifecycle’

F.

Objectives of the organisation

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Question # 69

A procurement professional is preparing for a negotiation of purchasing non-critical commodity products. He knows that the product can be easily replaced by other substitutes in the market. The negotiation for these products is typified by which of the following?

Options:

A.

The buyer should focus on wider costs and risk elements

B.

The approach must be collaborative

C.

There will be only limited negotiation

D.

There will be regular structured negotiations

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Question # 70

Which of the following are types of non-verbal communication that could be used during a negotiation meeting? Select THREE that apply.

Options:

A.

Meeting location

B.

Reference materials

C.

Hand gestures

D.

Room layout

E.

Eye contact

F.

Facial expressions

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Question # 71

What letter R in the acronym SMART stands for?

Options:

A.

Recommended

B.

Random

C.

Relevant

D.

Risk-free

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Question # 72

A procurement manager has decided to bring in a junior member of their team to a negotiation meeting. Which of the following would be suitable roles for this junior member of the team?

Options:

A.

1 and 2 (Note taker and Expert)

B.

1 and 3 (Note taker and Observer)

C.

2 and 3 (Expert and Observer)

D.

3 and 4 (Observer and an unspecified fourth option - assumed error)

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Question # 73

Which of the following would help build trust in a relationship?

    Mediation attendance

    Regular meetings

    Keep promises

    Coercion

Options:

A.

2 and 4 only

B.

2 and 3 only

C.

1 and 4 only

D.

1 and 3 only

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Exam Code: L4M5
Exam Name: Commercial Negotiation
Last Update: Jun 15, 2025
Questions: 317
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