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CIPS Commercial Negotiation Sample Questions (Q197-Q202):
NEW QUESTION # 197
Which of the following are types of non-verbal communication that could be used during a negotiation meeting? Select THREE that apply.
- A. Meeting location
- B. Reference materials
- C. Hand gestures
- D. Facial expressions
- E. Eye contact
- F. Room layout
Answer: C,D,E
Explanation:
Non-verbal communicationsignificantly affects the dynamics of negotiation.Hand gestures,eye contact, andfacial expressionscan reinforce spoken words or contradict them. These elements can influence perception, trust, and the tone of the negotiation.
"Non-verbal communication includes gestures, posture, eye contact, and facial expressions. These play a critical role in how messages are received and interpreted." (L4M5 Commercial Negotiation, 2nd edition, Section 3.3 - Verbal and Non-Verbal Communication Techniques)
NEW QUESTION # 198
Economic growth can be measured by...?
- A. SBLI
- B. GDP
- C. The CPI
- D. The PPI
Answer: B
Explanation:
Gross Domestic Product (GDP) is the monetary value of the goods and services manufactured or supplied in a financial period. In general terms, when the GDP rate falls or slows down, there will be a fall in demand forgoods and services demanded in the economy, with a fall in firms' revenue and profit margins. When GDP is rising, there will be an increase in demand.
Consumer Price Index (CPI) is weighted measurement that evaluates the average cost of a basket of goods bought by a consumer.
Producer Price Index (PPI) is average changes in prices that a producer receives in return for its goods or services.
Small Business Lending Index (SBLI) is an indicator of small business lending trends.
NEW QUESTION # 199
What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?
- A. Win lose
- B. Lose lose
- C. Deadlocked
- D. Win win
Answer: A
Explanation:
An adversarial relationship in purchasing and supply arises when identical or equivalent good or services are available from competing suppliers and buyers/sellers are trying to gain an advantage over each other. Low levels of trust are characteristic of adversarial relationships. The outcome when two organisations with adversarial negotiate is most likely to be win-lose.
NEW QUESTION # 200
In addition to organisational power, personal power of each negotiator can influence the outcomes of a negotiation. A good negotiator can leverage different sources of power. Is this statement true?
- A. No, because each person has only one superior source of personal power
- B. No, because only organisational power can be leveraged during a negotiation
- C. Yes, because the good negotiator recognises his own power in a negotiation
- D. Yes, because all sources of power have similar effectiveness in every situation
Answer: C
Explanation:
Both organisational and personal power have the ability to influence the outcomes of negotiation. Good negotiators recognises the different sources of relative personal power they possess in a negotiation. There is no one superior source of personal power; they will vary in their effectiveness based on the situation. The more personal sources available the better, even if some not used, these can be used as a fallback.
LO 1, AC 1.3
NEW QUESTION # 201
Using emotion as a technique of persuasion is ethical. Is this a true statement?
- A. No, because emotions should not be involved in business agreements
- B. No, because it's not the best route to enhance relationships
- C. Yes, because it may appeal to the supplier's goodwill
- D. Yes, because use of emotion will always lead to agreement
Answer: A
Explanation:
Reference: CIPS L4M5 Study Guide, Section 3.1 - Planning and Preparation for Negotiation (Ethics)
NEW QUESTION # 202
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