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Commercial Negotiation

Last Update Jun 15, 2025
Total Questions : 317 With Methodical Explanation

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All CIPS Level 4 Diploma in Procurement and Supply Related Certification Exams


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Commercial Negotiation Questions and Answers

Questions 1

Which of the following are internal factors when a supplier is making its pricing decision?

Options:

A.

1 and 2 only (Price elasticity of demand and Environmental legislation)

B.

1 and 4 only (Price elasticity of demand and The stage in the product life cycle)

C.

2 and 3 only (Environmental legislation and Risk management)

D.

3 and 4 only (Risk management and The stage in the product life cycle)

Questions 2

Which of the following is the most appropriate pricing arrangement in contracts where major inputs are commodities?

Options:

A.

Price adjustment mechanism

B.

Cost reimbursable pricing arrangement

C.

Standard schedule of rates

D.

Fixed pricing arrangement

Questions 3

Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

Options:

A.

Conducting transparent procurement process

B.

Over-inflated contingency funds

C.

Allowing supplier to involve in early product development

D.

Commercial espionage

E.

Tendency to blame other party

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