Question 1

A procurement manager has decided to bring in a junior member of their team to a negotiation meeting.

Which of the following would be suitable roles for this junior member of the team?

Note taker

Expert

Observer

Chair

Options :

A : 1 and 2

B : 1 and 5

C : 2 and 3

D : 3 and 4

Answer: B

Question 2

Which of the following types of questions are likely to be the most effective to check facts in negotiations?

Options :

A : Hypothetical

B : Open

C : Leading

D : Closed

Answer: D

Question 3

Which of the following are examples of variable costs?

Building and site rent

Annual insurance premium

Raw materials expenditure

Delivery costs for materials

Options :

A : 1 and 3

B : 2 and 3

C : 1 and 4

D : 3 and 4

Answer: D

Question 4

Listening is a key activity in any negotiation. Which of the following are characteristics of effective listeners?

Options :

A : 2 and 4 only (Persuading and Offering immediate solutions)

B : 1 and 2 only (Showing empathy and Persuading)

C : 1 and 3 only (Showing empathy and Paraphrasing)

D : 3 and 4 only (Paraphrasing and Offering immediate solutions)

Answer: C

Question 5

A new manager has been appointed with responsibility for an organisation's category which has major impact on organisational cost base and there are little competitions in the supply market. They have an objective to improve supplier cost structures over time. Which of the following should they carry out first?

Options :

A : Purchase price cost analysis

B : Competitive rivalry analysis

C : Volume concentration

D : STEEPLE analysis

Answer: A