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Which of the following is a description of mark-up?
Which of the following is a description of mark-up?A . Profit expressed as a percentage of the selling priceB . Profit expressed as a percentage of costsC . Profit expressed as a percentage of fixed costsD . Profit expressed as a percentage of variable costsView AnswerAnswer: B Explanation: Mark-up is...
Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?
Where there are high levels of commitment to relationships between both the buyer and supplier, this is seen as collaborative and beneficial to negotiations. Is this statement correct?A . Yes, characteristics include risk management and strategic planningB . No, this can be classified as adversarialC . Yes, characteristics include arm's...
At a negotiation, which one of the following sources would help to support leverage for the buyer?
Different types of relationships impact commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?A . Legitimate powerB . Personality powerC . Powerful colleaguesD . Friends powerView AnswerAnswer: A Explanation: Legitimate power derives from formal authority or position, giving the buyer...
Would this be the best course of action?
A procurement manager has been asked to procure 1,000 pens. He suggests to his manager that to obtain the best value for money, they should undertake a competitive bidding process. Would this be the best course of action?A . Yes, as all procurement processes should go through competitive bidding to...
Which of the following would be a source of macroeconomic data?
Langham Industries is seeking to expand its operations globally. The CEO has asked the procurement department to engage in a macroeconomic analysis for its potential new supply chain to meet organisational objectives and outcomes. Which of the following would be a source of macroeconomic data?A . Competitor analysisB . Attending...
What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?
What is a benefit to the buyer of having a BATNA (best alternative to a negotiated agreement) in a negotiation?A . To aid detailed pre-meeting data gathering and analysisB . To reduce financial and logistical risk for both partiesC . To be able to confidently walk away from an unfavorable...
The stages of commercial negotiation involve which of the following characteristics?
The stages of commercial negotiation involve which of the following characteristics?A . Preparation, proposal, bargain, leaveB . Open, testing, bargaining, closing, revisitingC . Preparing, opening, bargaining, agreement, closureD . Opening, debating, promising, testing, disagreeing, closingView AnswerAnswer: C Explanation: The typical stages of commercial negotiation are Preparing, opening, bargaining, agreement, and...
At a negotiation, which one of the following sources would help to support leverage for the buyer?
Different types of relationships impact commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?A . Legitimate powerB . Personality powerC . Powerful colleaguesD . Friends powerView AnswerAnswer: A Explanation: Legitimate power derives from formal authority or position, giving the buyer...
Which negotiation approach should she undertake?
Maria is a professional services category buyer within the National Health Service. Due to the severe financial budget cutbacks the National Health Service is facing, the procurement team has been tasked with achieving cost savings so that funding available can be spent on patient care. Maria plans to achieve savings...
Which of the following types of questions are likely to be the most effective to check facts in negotiations?
Which of the following types of questions are likely to be the most effective to check facts in negotiations?A . HypotheticalB . OpenC . LeadingD . ClosedView AnswerAnswer: D Explanation: Closed questions are useful for verifying facts, as they prompt specific, concise responses. These questions allow the negotiator to confirm...
