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Download Commercial Negotiation Exam Dumps
NEW QUESTION 27
During a negotiation, a procurement manager suggests that the two companies should split the difference which would benefit both the supplier and buyer. Which persuasion method is she using?
- A. Logic
- B. Good cop/bad cop
- C. Threat
- D. Compromise
Answer: D
Explanation:
In the scenario, the manager propose to 'split the difference', which means each party will accept some of their demands and concede some. This is known as 'Compromise'.
NEW QUESTION 28
Personal power is only used in distributive approach. Is this statement true?
- A. Yes, because one party will abuse coercive power to maximise the gain
- B. No, because only organisational power will optimise the negotiation outcomes
- C. Yes, because only distributive approach to negotiation requires strong personal power
- D. No, because personal power can be veryhelpful in integrative approach
Answer: D
Explanation:
Explanation
Power, or more precisely perceptions of power,are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective.
When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven's power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement LO 1, AC 1.3
NEW QUESTION 29
Which of the following will positively affect reputational strength of an organisation? Select TWO that apply.
- A. Adopting out-of-date technology
- B. Strong customer focus
- C. High ethical standards
- D. Great gap between reputation and reality
- E. Weak internal coordination
Answer: B,C
Explanation:
Explanation
In a globalisedcommercial world characterised by dynamic market and multiple companies competing for business, a positive corporate reputation can be an enormous asset. Reputational strength in one organisation might be based on some or all of the following characteristics:
- Quality of products or services
- Low cost/high value for money
- High ethical standards
- Reliability
- Cutting-edge technology
- Strong customer focus
- Engineering excellence
LO 1, AC 1.4
NEW QUESTION 30
Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.
- A. Flightcrew training
- B. Fuel
- C. Advertising and promotion
- D. Purchase of aircraft
- E. Catering services
Answer: A,D
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 31
Which of the following is a disadvantage of absorption costing method?
- A. Fixedcost allocated to products on the basis of the cost of activities used in producing them
- B. Limited understanding of true costs incurred
- C. Variable costs are not taken into product final costs
- D. Using marginal cost of producing addition units
Answer: B
Explanation:
Absorption costing is an approach to allocating overheads in which indirect costs are loaded or absorbed into direct costs related to specific jobs, processes or outputs, using an estimated basis of allocation.
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NEW QUESTION 32
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