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100% Pass CIPS - Reliable Dumps L4M5 Torrent

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To prepare for the CIPS L4M5 Certification Exam, candidates should have a good understanding of procurement processes and supplier management. They should also have experience in negotiating contracts and agreements. L4M5 exam consists of 60 multiple-choice questions, and the pass mark is 60%. L4M5 Exam is available online, and candidates have 90 minutes to complete it. Successful candidates will be awarded the CIPS L4M5 Certification, which is valid for three years.

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CIPS Commercial Negotiation Sample Questions (Q61-Q66):

NEW QUESTION # 61
Freefields Housing Authority (FHA) is a housing provider that has outsourced a range of management services using fixed-price long-term contracts. FHA's regular supplier credit reviews have identified that some key outsourced service suppliers are at risk of insolvency due to high inflation rates observed in the macroeconomic climate. Which of the following actions would enable FHA to reduce this risk for the lifetime of the affected contracts?

A. End the contracts and procure the services
B. Allow affected suppliers to review and resubmit their fixed costs
C. Introduce indexation of contracts linked to the Consumer Prices Index
D. Offer advance payment terms to the affected suppliers

Answer: C

NEW QUESTION # 62
A supplier can produce a product for $160. The supplier sells the product to their client for $240, making a profit before tax of $80 on the transaction. What is the mark-up profit percentage earned by the supplier on this transaction?

A. 33%
B. 50%
C. 159%
D. 67%

Answer: B

Explanation:
The mark-up percentage is calculated as the profit divided by the cost of production, then multiplied by 100 to convert it into a percentage.
Calculation:
(
80
/
160
)
×
100
=
50
%
(80/160)×100=50%
Thus, the supplier's mark-up percentage is 50%, as per standard pricing calculations used in procurement.

NEW QUESTION # 63
The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer's greater bargaining power over the suppliers. In what other circumstances should an adversarial relationship be used?

A. In a monopoly market as the supplier will respond by conceding quantity discounts
B. In all forms of negotiation as each party is always trying to gain advantage over the other
C. When the supplier is likely to respond with further concessions to maintain a long-term relationship
D. When the issues concerned are non-negotiable, for example, health and safety commitments

Answer: D

Explanation:
This question is a duplicate of Question 17. The answer remains the same: When the issues concerned are non- negotiable, such as health and safety commitments (D). Non-negotiable issues require an assertive approach to ensure adherence to essential standards, as highlighted in CIPS's framework for negotiation styles.

NEW QUESTION # 64
Understanding supplier's mark-up and margin can provide procurement professional a comprehensive insight into supplier's net profits. Is this statement true?

A. Yes, becausesupplier's mark-up and margin are two most valuable sources of information to procurement
B. No, because mark-up and margin inform little about supplier's net profit
C. Yes,because these are two indicators of supplier's future prospect
D. No, because margin is enough to tell procurement about supplier's profitability

Answer: B

Explanation:
Explanation
Mark-up and margin allow supplier to make gross profit. Remember that every supplier operates under different cost structures and some are set up to be most profitableat a particular level of volume, so it is dangerous to assume all suppliers can survive on a lower margin if their volume increases. Intelligent buyers understand that mark-up and margin may define gross profits, but they tell you very little about a supplier's net profits.
LO 2, AC 2.1

NEW QUESTION # 65
Which of the following are most likely to turn buying organisation into an unattractive customer in supplier's perspective? Select TWO that apply.

A. Using SRM technology
B. Reduced paperwork in procurement processes
C. Adopting clear and concise CSR policies
D. Unclear tender award criteria
E. Demands for kickback

Answer: D,E

Explanation:
Becoming a preferred customerto supplier's perspective can increase the purchaser's leverage in negotiation.
Beside the size of buying organisation or its spend, the following may be sufficient to differentiate the buyer from other buying organisations:
Simple procurement processes: Using SRM technology may help to simplify the process Simple contracting processes Clear and concise documentation: Reduced paperwork helps both supplier and buyer save their time and resources.
Absence of onerous supplier terms and conditions
On-time payment
Transparent processes: Unclear tender award criteria can be seen as opaque. Suppliers who attended the tendering processes cannot know the reasons why their bids are rejected and hesitate to attend other tendering.
Ethical behaviour: Suppliers may prefer a buyer who adopts CSR policy because they can predict potential customer's behaviour. Demands for kickback are unethical behaviours.

NEW QUESTION # 66
......

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