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Free CIPS L4M5 Exam Questions (page: 8)

Page 8 of 70
PDF with 275 Questions

Which of the following are microeconomic factors? Select THREE that apply.

  1. Rates of taxation
  2. Availability of investors
  3. Unemployment levels
  4. Distribution channels
  5. Rates of inflation
  6. Levels of competition

Answer(s): B,D,F

Explanation:

Microeconomic factors refer to elements that affect individual businesses or sectors rather than the economy as a whole. In this case:

Availability of investors (B): Access to investors impacts capital availability for businesses.

Distribution channels (D): Distribution methods directly influence a business's ability to get products to market.
Levels of competition (F): Competition affects pricing and strategic decisions within specific industries.
Taxation rates, unemployment levels, and inflation rates are considered macroeconomic factors, affecting the economy on a broader scale, as per CIPS's definitions of microeconomic vs.
macroeconomic influences.



Which of the following can be prepared before a negotiation with a supplier to achieve an agreement to benefit both parties?

Zone of potential agreement
Attendee list for the negotiation talks
Walk-away point
Venue for the negotiation talks

  1. 1 and 2
  2. 1 and 3
  3. 3 and 4
  4. 2 and 3

Answer(s): B

Explanation:

Zone of Potential Agreement (1) and Walk-away point (3) are key elements in negotiation planning. Establishing a Zone of Potential Agreement helps identify where interests align, while the Walk-away point sets the limit of acceptable terms. Both are essential to preparing a negotiation framework that benefits both parties, as per CIPS best practices.



Effective listening is important in integrative negotiations. Is this statement correct?

  1. Yes, as it allows issues to be shared and understood between all parties
  2. Yes, as it means the supplier's attempts at negotiation can be stopped quickly with reasoning
  3. No, as what the other party has to say is not important
  4. No, as effective listening is important only in a distributive negotiation

Answer(s): A

Explanation:

Effective listening is crucial in integrative negotiations because it promotes understanding and collaboration. By actively listening, parties can identify shared interests and address concerns, which supports the goal of reaching mutually beneficial solutions. This is a key component in CIPS guidelines on successful integrative negotiation practices.



A procurement expert has been asked to ensure they consider emotional intelligence in their negotiation strategy. They have agreed to this and have started planning their approach.
Which of the following describes emotional intelligence?

  1. An individual's ability to gain leverage by persuading the other party to agree to their terms
  2. An individual's ability to fully understand another party's cost drivers and profit margins
  3. An individual's ability to understand their own feelings and those of other people
  4. An individual's ability to place themselves in a position of authority during a negotiation

Answer(s): C

Explanation:

Emotional intelligence involves the ability to recognize and manage one's emotions and empathize with others. This skill allows negotiators to respond appropriately to both their own feelings and the emotional cues of the other party, fostering a more constructive and adaptive negotiation environment. CIPS highlights emotional intelligence as a valuable asset in understanding and influencing negotiation dynamics.



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