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CIPS L4M5 Exam - Topic 9 Question 20 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 20
Topic #: 9
[All L4M5 Questions]

Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power. The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?

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Suggested Answer: B

In the scenario, the length of payment period is particularly important to the supplier as they are investing new facilities. Otherwise, the buyer's company has a positive cash flow position and budget is available for a shorter payment terms. So this tradeable (payment period) is important to supplier but it is not a significant problem with the buyer. This tradeable will fall within 'Easy concession to trade' quadrant in the following matrix:

If the tradeable fall within this quadrant, Sally should shorten the payment period in supplier's favour and try to win as many concessions as possible in return. Asking for a discount may be a reasonable trade-off.

LO 2, AC 2.3


by Dalene at May 06, 2022, 05:10 AM

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Idella
4 months ago
Contending on the normal payment period could lead to better long-term relations.
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Owen
4 months ago
Wait, why would she just agree without negotiating more? Seems off.
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Enola
4 months ago
30 days is pretty standard for many industries, so it's not unreasonable.
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Carole
4 months ago
I think agreeing to the supplier's terms is too easy.
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Yuonne
5 months ago
Sally should definitely ask for a discount if she's shortening the payment period.
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Lachelle
5 months ago
This one seems pretty straightforward. I'd go with option B - "Simplify polygons unchecked" to get the polygon boundaries that most closely match the raster cell shapes.
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Lashaunda
5 months ago
I think three-way conference might be one of the features, but I'm not entirely sure if T.38 fax relay is supported in this context.
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Louvenia
5 months ago
Hmm, I'm not totally sure about this one. I know smoking can deplete certain vitamins, but I'm not sure which specific one. I'll have to think it through carefully.
upvoted 0 times
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Antione
5 months ago
From what I recall, the Ethernet adapter settings usually deal with CPU allocation, so it seems like the right choice here to alleviate the overload.
upvoted 0 times
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Leonardo
5 months ago
This seems like a straightforward question about Alibaba Cloud's anti-DDoS products. I'll need to carefully review the details of each option to determine which one is the most suitable for maintaining 99.9% service availability.
upvoted 0 times
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