L4M5

One difference between perfect competition and monopolistic competition is that...?A . In perfect competition, firms produce slightly differentiated productsB . A perfectly competitive industry has fewer firms.C . Monopolistic competition has no barriers to entryD . Firms in monopolistic competition face a downward-sloping demand curveView AnswerAnswer: D Explanation: Monopolistic competition...

Which of the following are signs indicating that TOP is using coercive power in commercial negotiation? Select TWO that apply.A . Demonstrating fairness and respectB . Withdrawal of benefitsC . Use of guiltD . Technical expertiseE . Positive referencesView AnswerAnswer: B,C Explanation: Coercive power comes from the belief that a...

A supplier’s mark-up on all products is 25%. Supplier's profit margin is...?A . 20%B . 30%C . 75%D . 15%View AnswerAnswer: A Explanation: Table Description automatically generated with medium confidence Text Description automatically generated with low confidence LO 2, AC 2.1

When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?A . When both buyer and supplier want to find anintegrative solution as their concerns are too important to be compromisedB . When buyer needs to gather more information to gain more advantages in later negotiationsC...

Which of the following statements about oligopoly is incorrect?A . A few firms play an important role in the sale of a productB . Oligopolistic firms recognize their interdependenceC . One firm's behaviour is a function of what its rivals doD . Prices in oligopoly are predicted to fluctuate widely...

Which of the following are macroeconomic factors that may have influence to the commercial negotiation? Select TWO that applyA . Equilibrium priceB . Supply curveC . Unemployment rateD . Bargaining power of supplierE . Rising import tariffsView AnswerAnswer: C,E Explanation: There are many macro economic factors that could influence procurement...

Which of the following is considered a weakness of a ‘dealer’ style negotiator?A . May shift position quicklyB . May be too assertiveC . Focuses on the facts and not the peopleD . Very preciseView AnswerAnswer: A Explanation: A useful and simple shorthand for preferred negotiation styles is summarised by...

After studying Thomas-Kilmann conflict resolution model and considering different approaches carefully, the procurement team of XYZ Ltd. decides to adopt an avoiding approach to the upcoming negotiation with one of their suppliers. Which of the following will be the objective of XYZ procurement team in this negotiation?A . Yielding the...

Which of the following is the area where two or more negotiating parties may find common ground?A . Zone of potential agreementB . Zone of proximal developmentC . Walk away areaD . Best alternative to a negotiated agreementView AnswerAnswer: A Explanation: The zone of possible agreement (ZOPA) orbargaining range is...

In a commercial negotiation, a procurement professional believe that the larger the order quantity from buyer, the lower the supplier's average costs. Is this assumption true?A . No, because supplier's average costs will rise as the buyer's demand increasesB . No, because the supplier may need to invest in new...