L4M5

L4M5 practice questions, page 2 of 3, with answer review and explanations.

Question 6

Two firms which are negotiating a contract have an adversarial relationship.What type of negotiation would you expect to take place?

  1. Win – win negotiations
  2. Win – lose negotiations
  3. Lose – lose negotiations
  4. Collaborative negotiations

Question 7

A procurement manager is about to lead an important negotiation with a new IT supplier. The procurement manager has insisted that the first meeting takes place at the buying organization’s office.Will this give one party an advantage?

  1. Yes, the buyer, as the supplier will not be familiar with the premises and might be less confident in their approach
  2. No, because location is not important and does not impact leverage for either party
  3. Yes, the supplier, as they will be able to take time away from their usual place of work
  4. No, because the costs, time and resource spent in attending by both parties will be equal

Question 8

Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders and the users.Is this TRUE?

  1. Yes, and the budget holder is the most important one because of the finances involved
  2. Yes, the role of procurement is to ensure that the technical specifications are fit for purpose
  3. No, only procurement, the user and suppliers have an interest in the products negotiated
  4. No, other stakeholders, such as directors, and IT might also be interested in the negotiation outcomes

Question 9

Open questions can be a useful communication tool in negotiations.Is this statement correct?

  1. Yes, they can be used to get explicit confirmation over pricing and exact profit margins
  2. No, they can lead to complex answers that do not benefit the negotiation
  3. Yes, they can be used to gain more in-depth information and build rapport
  4. No, they can lead to misunderstandings due to their probing nature

Question 10

The procurement manager has received a number of bids for the supply of a new piece of capital equipment. Three potential suppliers have been shortlisted from the bids in preparation for negotiations. The procurement manager is considering using an integrative negotiation approach.Which factors are likely to favour such an approach?

  1. There is an absence of common or joint goals between the parties
  2. The parties do not trust the integrity of the other side in the negotiation
  3. Parties have a stronger motivation to work together rather than separately
  4. The parties understand the process, but are unwilling to exchange data