CIPS L4M5 Exam - Topic 3 Question 55 Discussion

Actual exam question for CIPS's L4M5 exam

Question #: 55
Topic #: 3

Different types of relationships impact commercial negotiations. At a negotiation, which one of the following sources would help to support leverage for the buyer?

ALegitimate power

BPersonality power

CPowerful colleagues

DFriends power

Show Suggested Answer

Suggested Answer: B, D

A perfectly competitive market is one with the following features:

- There are many firms producing identical or very similar (homogeneous) goods or services

- There are no barriers to entry to the market or exit from the market - anyone can enter or leave easily

- Both producers and customers have perfect knowledge of the market place, prices, costs of production and influences on demand and supply

Under these conditions, the price and quantity will always tend toward equilibrium as any producer that sets a price above equilibrium will not sell anything at all, and any producer that sets a price below a equilibrium will obtain 100% market share in theory. The demand curve is perfectly elastic, which means that it will be horizontal. In a perfectly competitive market, it is difficult to increase profits through pricing, and suppliers instead must focus on their cost structure. As these conditions imply, there are few if any examples of perfectly competitive market.

LO 2, AC 2.2

by Caprice at Mar 17, 2024, 11:02 PM

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Stephanie

6 months ago

Really? I thought personality power could be more influential.

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Aliza

6 months ago

Legitimate power is key in negotiations!

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Frederick

6 months ago

Wait, friends power? That sounds a bit weak.

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Elly

7 months ago

Totally agree, it’s all about who you know!

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Flo

7 months ago

I think powerful colleagues would definitely help.

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Fatima

7 months ago

Friends power sounds a bit weak for negotiations, but I guess it could help in some situations. I’m confused!

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Galen

7 months ago

Powerful colleagues could also be a factor, but I’m leaning towards legitimate power since it’s more formal.

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Alethea

7 months ago

I’m not so sure about that. I remember a practice question where personality power seemed to play a big role in negotiations.

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Ty

8 months ago

I think legitimate power might be the right answer since it’s based on authority and can really influence negotiations.

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Avery

8 months ago

I'm a bit confused by the wording of the question. Are they asking about the buyer's power sources, or the seller's? I want to make sure I understand the question correctly before I answer.

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Magda

8 months ago

Hmm, I'm not totally sure about this one. I know there are different types of power, but I'm not sure which one would specifically help the buyer in a negotiation. I'll have to think this through carefully.

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Jennifer

8 months ago

This seems like a straightforward question about the different types of power in negotiations. I'm pretty confident I can figure this out.

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Kris

8 months ago

Okay, let's see. The buyer would want to have some kind of leverage or power over the other party in the negotiation. I'm thinking legitimate power, where the buyer has a valid claim or authority, would be the best option here.

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Reita

8 months ago

This looks like a pretty straightforward question about ITSI deployment recommendations. I'm confident I can handle this one.

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Alyssa

8 months ago

Okay, let's see. The question is asking about the port used for SIP signaling from the Cisco Meeting Server to the H.323 gateway. I'll need to review my notes on Cisco Meeting Server configuration.

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Elmer

8 months ago

The best approach here is to focus on the core purpose of a struct, which is to define a new data type. I'll eliminate the options that don't align with that and select the most relevant one.

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Marya

1 year ago

Wait, I thought this was a negotiation, not a dating game. 'Friends power'? What's next, bringing your mom to the table? I'm going with 'Legitimate power' and leaving the personal connections out of it.

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Alisha

1 year ago

Ah, the age-old dilemma: do I use my real friends or my imaginary friends to get the upper hand? I think I'll go with 'Powerful colleagues' and leave the fantasy power at home.

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Mee

11 months ago

Using personality power can also be effective in negotiations, depending on the situation.

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Kizzy

12 months ago

I think legitimate power is also important to support leverage for the buyer.

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Stefania

1 year ago

I agree, having powerful colleagues can definitely give you an advantage in negotiations.

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Rana

1 year ago

Oh, look at Mr. Personality over here, trying to use his charm to get a better deal. Sorry, but 'Personality power' isn't going to cut it. I'm sticking with 'Powerful colleagues'.

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Tegan

1 year ago

I believe powerful colleagues could also support leverage for the buyer.

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Kimbery

1 year ago

I agree with Han, legitimate power is a strong source of leverage.

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Lera

1 year ago

Friends power? Really? I thought this was a business negotiation, not a high school popularity contest. I'm going with 'Legitimate power' on this one.

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