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NEW QUESTION # 277
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.
Answer: D,E
Explanation:
Trust may create value as following:
LO 1, AC 1.4
NEW QUESTION # 278
When planning a negotiation for sourcing internationally, which of the following divergent positions, and therefore potential conflict areas, should be prepared for? Select TWO that apply:
Answer: B,C,E
NEW QUESTION # 279
Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.
Answer: A,B
Explanation:
Fixed costs (FC) are costs that do not vary with volume. To an airline once aircraft are purchased, flight crews trained and departures scheduled, costs are disproportionately fixed.
Variable costs (VC) are those which vary with the amount produced. Fuel, catering services and marketing are examples of variable.
LO 2, AC 2.1
NEW QUESTION # 280
Which best describes features of the recovery phase in a business cycle? Select TWO.
Answer: C,E
Explanation:
In the recovery phase, economies move out of recession: consumer spending rises, demand grows, and prices begin to stabilise or increase. Confidence improves, investment starts picking up, and spare capacity is gradually absorbed. Low confidence and falling investment are features of recession, while full capacity is linked to boom phases. For negotiators, recovery phases may mean suppliers regain confidence to raise prices, requiring careful market analysis.
Reference: CIPS L4M5 (2nd ed.), LO 1.2 - Economic cycles and their implications for negotiation.
NEW QUESTION # 281
Which of the following is definition of elasticity of demand in microeconomics?
Answer: C
Explanation:
Elasticity refers to the responsiveness of quantity demanded or quantity supplied to a change in price or another factor:
The price of a product can be described as being elastic if a small change in price leads to a big change in demand.
The price of a product can be described as being inelastic if a big change in price leads to a small change in demand.
The formulae of elasticity of demand is known as the following:
Text Description automatically generated with low confidence
NEW QUESTION # 282
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