Question 1

Which of the following should be done by the procurement team at the closing stage of a negotiation? Select TWO that apply.

Options :

A : Gloat publicly about the deal

B : Seek agreement in principle if TOP does not have the final authority

C : Tell TOP that they could have got a better deal

D : Accept ambiguity or uncertainty

E : Leave the meeting as soon as possible

Answer: B,E

Question 2

In a commercial negotiation, a procurement professional negotiates on his company's behalf. The power of buying organisation is the only factor that influences the behaviours of the other party. Is this assumption true?

Options :

A : Yes, because the outcomes of negotiation are attributable to the buying organisation

B : No, because personal power of negotiators also attributes to the outcomes

C : No, because power of supplier is the only factor that influences the other party

D : Yes, because buyer's brand, reputation and purchasing spend largely determine the outcomes

Answer: B

Question 3

Lina Rawlins is a senior buyer working for a medical equipment company. Lina is in charge of the company’s largest supplier account, Great Barrington Gas (GBG), a medical equipment supplier. Recently, GBG's performance has declined, leading to an increasing number of rejected items. Lina is aware of the seriousness of this and has asked GBG to attend an urgent meeting. In the meeting, Lina asked the GBG representative, “Can you tell me exactly what you are doing to ensure quality?" What type of question is Lina asking?

Options :

A : Probing

B : Leading

C : Reflective

D : Hypothetical

Answer: A

Question 4

Economic growth can be measured by...?

Options :

A : The PPI

B : GDP

C : The CPI

D : SBLI

Answer: B

Question 5

Stalemate is more likely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?

Options :

A : No, because the party who offers more variables will have lower bargaining power

B : Yes, because the negotiation will last endlessly if there are too many variables

C : No, because more variables will facilitate more possible negotiated outcomes

D : Yes, because more variables will cause more conflicts of interest

Answer: C

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