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| Section | Weight | Objectives |
|---|---|---|
| Know how to prepare for negotiations with external organisations | 35% | - Planning and resources
|
| Understand key approaches in the negotiation of commercial agreements with external organisations | 35% | - Power dynamics in negotiation
|
| Understand how commercial negotiations should be undertaken | 30% | - Communication skills
|
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NEW QUESTION # 120
Which ofthe following is a true statement regarding macroeconomic factors and their potential impact on negotiations?
Answer: A
Explanation:
Explanation
'Macroeconomic factors always directly influence the negotiations': This statement is false. For any given negotiation it is not the macroeconomic factor itself that necessarily influences the negotiation but the change or rate of change that factor.
'Changes in macroeconomic factors may affect businesses and individualsdifferently': This statement is true.
Macroeconomic factors are factors that have general effects on the economy and many businesses may be completely unaffected or affected more or less than others in the same industry by a change in a factor.
'Macroeconomic factors cannot be influenced by anyone's expectation or sentiment': This statement is false.
When it comes to macroeconomic factors another key consideration is expectation regarding what might happen to these factors, or specifically the measures, metrics or percentage rates associated with these factors in the future.
'Expectations on macroeconomic prospect are always correct': This statement is false. Expectations are not always correct.
LO 2, AC 2.2
NEW QUESTION # 121
Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.
Answer: C,D
Explanation:
Explanation
Emotional Quotient is the set of skills that enables us to make our way in a complex world - the personal, social and survival aspects of overall intelligence, the elusive common sense and sensitivity that areessential to effective daily functioning. It has to do with the ability to read the political and social environment, and landscape them; to intuitively grasp what others want and need; what strengths and weaknesses are; to remain unruffled by stress; andto be engaging. The kind of person others want to be around and follow.
EQ seeks to measure emotional intelligence and is centred on abilities such as the following:
- Identifying emotions
- Evaluating how others feel
- Controlling one's own emotions
- Perceiving how others feel
- Using emotions to facilitate social communication
- Relating to others
On the other hand, cognitive ability is defined as a general mental capability involving reasoning, problem solving, planning, abstract thinking, complex ideacomprehension, and learning from experience (Gottfredson,
1997).
LO 3, AC 3.3
NEW QUESTION # 122
Which of the following is an advantage of a fixed-price agreement?
Answer: C
Explanation:
Fixed-price agreements give buyers financial certainty, reducing exposure to supplier inefficiencies, cost increases, or inflation. The supplier bears the risk of cost overruns. While it doesn't automatically improve quality or payment terms, it allows buyers to forecast budgets and manage risk effectively. This makes fixed- price contracts especially useful for projects with defined scopes, where costs are predictable. In contrast, cost- plus contracts keep the risk with the buyer and require constant monitoring of supplier costs, making them less attractive in terms of risk management.
Reference: CIPS L4M5 (2nd ed.), LO 1.2 - Pricing arrangements and financial risk allocation.
NEW QUESTION # 123
"BATNA is a concept that should be considered at the start of negotiations." Is this statement correct?
Answer: A
Explanation:
BATNA (Best Alternative to a Negotiated Agreement) is a core preparation concept and should always be considered before negotiations begin. It gives the buyer clarity on the minimum acceptable outcome and provides leverage by ensuring they do not accept a deal worse than their alternative. BATNA is not a legal requirement, nor should it be developed only when negotiations fail, as this weakens negotiating confidence and decision-making. CIPS emphasises BATNA as a fundamental planning tool that underpins effective and disciplined negotiation behaviour.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 2.2: BATNA and walk-away points in negotiation preparation.
NEW QUESTION # 124
What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.
Answer: C,E
Explanation:
Late paymentsdamage trust and strain supplier cash flow, becoming a direct source of conflict. Similarly, when gains, risks, or costs arenot equitably shared, perceptions of unfairness can destabilize the relationship.
"Persistent late payments not only threaten supplier cash flows but can significantly erode trust. Additionally, disproportionate sharing of risks or benefits can create resentment and hinder collaboration." (L4M5 Commercial Negotiation, 2nd edition, Section 1.3 - Causes and Management of Conflict in Procurement)
NEW QUESTION # 125
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