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| Section | Objectives |
|---|---|
| Topic 1: Negotiation strategies and tactics | - Approaches to negotiation
|
| Topic 2: Negotiation planning and preparation | - Preparation techniques
|
| Topic 3: Negotiation fundamentals | - Principles of commercial negotiation
|
| Topic 4: Power, ethics and communication in negotiation | - Influencing factors
|
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NEW QUESTION # 351
Which of the following could be regarded as the outcome of a collaborative approach to negotiation?
Answer: A
Explanation:
A collaborative (win-win or integrative) negotiation aims to achieve outcomes that benefit both parties while preserving or strengthening the relationship. The focus is on shared objectives, trust, transparency, and long-term value creation rather than short-term gains. Splitting the difference is a compromise-based approach and does not necessarily create joint value. Adversarial or one-sided outcomes are associated with distributive negotiation styles and often damage morale and relationships. CIPS clearly positions collaborative negotiation as the preferred approach where ongoing relationships and mutual benefit are important.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 1.1: Collaborative and integrative negotiation outcomes.
NEW QUESTION # 352
Which of the following is NOT a barrier to entry in a monopolized market?
Answer: B
Explanation:
:
Monopolies exist in many markets in real life for very different reasons:
Ownership of a Key Resource: When one company exerts sole control over a resource that is necessary for the production of a specific product, the market may become a monopoly. For example, the only medication deemed acceptable to treat a disease comes from a particular ingredient X, and knowledge of this ingredient X is owned by a single family owned company. The company can, therefore, be said to have a monopoly over ingredient X that is needed to cure the disease because it is the only company that can produce a product deemed acceptable.
Government Franchise: In certain instances, a monopoly may be explicitly created by the government if it grants a single company, whether private or government-owned, the right to conduct business in a particular market. For example, when a national railways transportation service is created by the government, in most cases they are granted a monopoly on the operation of passenger trains in the country. As a result, other firms are only able to offer passenger train services with the cooperation and/or permission of the government- owned provider.
Intellectual Property Protection: Extending intellectual property protection to a company in the form of patents and copyrights is yet another way in which monopolies are created. When a government does this, it is in fact giving a single company an exclusive right to provide a particular product / service to the market.
Patents and copyrights work in providing owners of intellectual property with the right to act as an exclusive provider of a new product for a specific length of time. This creates a temporary monopoly in the market with regards to new products and services.
Natural Monopoly: A market may also become a monopoly simply because it may be more cost-effective for one company to serve the whole market than to have several smaller firms in competition with one another. A company with virtually unlimited economies of scale is referred to as a natural monopoly. Such firms become monopolies due to their position and size, which makes it impossible for new entrants in the market to compete price-wise. Natural monopolies are common in industries with high fixed costs and low marginal costs of operation such as providers of television, telephone, and internet services.
In this question, 'A single firm is very large' is not enough to tell whether this market is monopolistic.
NEW QUESTION # 353
Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.
Answer: A,B
Explanation:
Explanation
Fixed costs (FC) are costs that do not vary with volume. To an airline once aircraft are purchased, flight crews trained and departures scheduled, costs are disproportionately fixed.
Variable costs (VC) arethose which vary with the amount produced. Fuel, catering services and marketing are examples of variable.
LO 2, AC 2.1
NEW QUESTION # 354
Where a negotiator uses numerical reasoning with facts as part of their negotiation approach, which of the following techniques will they be adopting?
Answer: A
Explanation:
Using logic involves applying numerical data and factual evidence to support arguments in a negotiation.
Logical reasoning appeals to objective analysis rather than emotional or coercive tactics and is effective in convincing the other party through structured, fact-based arguments, aligning with CIPS's guidance on logical negotiation techniques.
NEW QUESTION # 355
A supplier's mark-up on all products is 25%. Supplier's profit margin is...?
Answer: A
Explanation:
Explanation
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Text Description automatically generated with low confidence
LO 2, AC 2.1
NEW QUESTION # 356
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