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Title: Latest CIPS L4M5 Exam Test - L4M5 Practice Engine [Print This Page]
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Title: Latest CIPS L4M5 Exam Test - L4M5 Practice Engine
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CIPS L4M5 Exam, also known as Commercial Negotiation, is a crucial qualification for professionals who are involved in procurement and supply chain management. L4M5 exam is one of the key modules of the CIPS Level 4 Diploma in Procurement and Supply, which is a highly respected qualification in the industry. The Commercial Negotiation module is designed to equip procurement professionals with the necessary skills and knowledge to effectively negotiate commercial contracts and agreements with suppliers and vendors.
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CIPS Commercial Negotiation Sample Questions (Q269-Q274):NEW QUESTION # 269
Which of the following best describes Leverage quadrant in Kraljic matrix?
Answer: A
Explanation:
In 1983, Peter Kraljic devised a means to segment the supplier base in the article in HBR. In this, he argued that supply items should be mapped against two key dimensions: risk and profitability.
Risk relates to the likelihood for an unexpected event in the supply chains to disrupt operations. For instance, in important areas of spend, such as tire suppliers for an automotive are business critical, and should a disruption occur, the auto company is likely itself to face substantial problems.
Profitability describes the impact of a supply item upon the bottom line. For certain areas of spend, such as stationery, supplies have only a negligible effect on profits. In other categories, a single source of supply can make or break a business.
Putting these two dimensions together yields a classic two-by-two matrix.
Source: Peter Kraljic, HBR
Reference:
- CIPS study guide page 63-73
- What Is The Kraljic Matrix? (forbes.com)
LO 1, AC 1.4

NEW QUESTION # 270
It may be more difficult to buy on a credit from supplier who locates in a country with a hyperinflation? Is this assumption true?
Answer: B
Explanation:
:
If the inflation rate is running high, then obtaining credit as a buyer is normally more difficult or expensive as money in the future will be worth less than money today.

NEW QUESTION # 271
Which type of question should be used to receive affirmation on statement?
Answer: A
Explanation:
:
Different questioning styles can be used to elicit desired responses:
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NEW QUESTION # 272
According to Dr. Mari Sako, which of the following is potentially the weakest trust to be built?
Answer: A
Explanation:
:
Trust is the expectation that the other party will behave in a predictable and mutually acceptable way. In inter- firm relationships, the presence and absence of trust can affect the level of cost in a relationship. The existence of trust is taught to lower the transaction cost in a relationship. Dr. Mari Sako identified taxonomy of 3 types of trust in commercial relationship, which is very useful from the perspective of procurement.
Contractual trust: Trust based on the contract with TOP. This is potentially the weakest source of trust if there is nothing else to base the trust on, but it is the quickest to establish.
Competence trust: Trust based on TOP's professional qualifications or proven or certified technical capability or experience.
Goodwill trust: Trust based on knowing TOP has your interest at heart and will not behave opportunistically.
This is potentially the strongest type of trust, but it takes the longest time to build.
Otherwise, trust also has legal meaning. A trust is a legal document that can be created during a person's lifetime and survive the person's death. A trust can also be created by a will and formed after death. Charitable trusts are trusts which benefit a particular charity or the public in general.

NEW QUESTION # 273
Jayden works as a procurement manager for a large IT organisation. They are currently in their third round of negotiations with an increasingly frustrated software solutions provider. Ben is representing the supplier.
Jayden has made eye contact in the latest meeting to confirm his understanding of each of Ben's points. What communication technique is Jayden demonstrating?
Answer: D

NEW QUESTION # 274
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