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L4M5 CIPS Commercial Negotiation Free Practice Exam Questions (2025 Updated)

Prepare effectively for your CIPS L4M5 Commercial Negotiation certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

Page: 5 / 5
Total 317 questions

Which of the following are indicative behaviours of a distributive approach to negotiating?

A.

1 and 4 only (Maintaining openness and Attempting to cast doubt)

B.

2 and 4 only (Establishing power and Attempting to cast doubt)

C.

1 and 3 only (Maintaining openness and Seeking understanding)

D.

2 and 3 only (Establishing power and Seeking understanding)

A garden furniture supplier who is currently in negotiations for a high-value contract has offered the procurement manager a visit to their site. The supplier suggests that during this visit, they can undertake the contract negotiation. What would be an appropriate response from the procurement manager?

A.

Accept the offer as this would be an ideal opportunity to see what the supplier can offer and will provide the supplier with familiarity while negotiating

B.

Accept the offer as this would save time; a supplier visit and negotiation could be done at the same time

C.

Decline the offer as it would take too much time to go and visit the supplier

D.

Decline the offer as negotiating while on a site visit will provide the supplier with an unfair advantage, as they will be in a familiar environment

Which of the following is the best description of direct cost?

A.

Direct costs are only variable raw materials that constitute a product

B.

Direct costs include raw materials, labour and overheads

C.

Direct costs include only raw materials and labour of making the final product

D.

Direct costs include raw materials, labour and other expenses attributable to the final product

When prices of input materials increase, supply curve shifts to the left while demand remains stable. The shift of supply will tend to cause which of the following?

A.

An increase in the equilibrium price and quantity

B.

A decrease in the equilibrium price and quantity

C.

A decrease in the equilibrium price and an increase in the equilibrium quantity

D.

An increase in the equilibrium price and a decrease in the equilibrium quantity

An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons why negotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.

A.

Underlying interests of TOP are overlooked

B.

MIL objectives are well established

C.

Both parties focus on common interests

D.

Buyer helps to create a co-operative atmosphere

E.

Unachievable objectives were set up

Which of the following are rules of attentive listening? Select TWO that apply.

A.

Prepare for what to say next

B.

React to the person who is speaking

C.

Listen deliberately

D.

Only focus on verbal cues

E.

Do not interrupt when the other party is speaking

A skilled negotiator will use a range of questioning techniques in a negotiation. If they wished to explore options with the other party without making any formal commitment, which type of question style would they use?

A.

Leading

B.

Hypothetic

C.

Reflective

D.

Multiple

Finding the middle ground between buyer and supplier by moving towards each other's position is a satisfactory way to complete contract negotiations and maintain ongoing relations for future negotiations. Is this statement correct?

A.

Yes, because both parties will get as close to their end result as possible

B.

Yes, because the buyer will always move further than the supplier

C.

No, because the other party will take advantage if you move your position

D.

No, because it will damage your credibility in contract negotiations

A procurement manager is considering negotiating variable pricing for a contract duration of 12 months. Would this be the right thing to do?

A.

No, because this will not enhance the buyer-supplier relationship

B.

No, because it will prove difficult to budget for the duration of the contract and provide financial uncertainty

C.

Yes, because this method of pricing will always provide value for money

D.

Yes, because it will build relationships with the supplier and provide a stronger platform for the next contract renewal

Jane is planning for a forthcoming negotiation with a key supplier. She has learned what are important to the supplier and what are important to her company from previous contracts between them. In order to avoid negotiation deadlocks, she has set up several concession plans. But Jane has little experience in dealing with suppliers and doesn't know when to trade these concessions. When is the best time in a negotiation to trade concessions?

A.

In the testing phase

B.

In the proposing phase

C.

At bargaining stage

D.

At opening stage

What letter R in the acronym SMART stands for?

A.

Recommended

B.

Random

C.

Relevant

D.

Risk-free

Which of the following are recognised techniques in contract negotiation? Select THREE that apply.

A.

Framing and reframing

B.

Ratification

C.

Pacing and leading

D.

Validation

E.

Role ethics

F.

Anchoring

In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the others to buy into influencer's ideas?

A.

Persuasive reasoning (push)

B.

Collaborative (pull)

C.

Visionary (pull)

D.

Directive (push)

Where a negotiator uses numerical reasoning with facts as part of their negotiation approach, which of the following techniques will they be adopting?

A.

Threat

B.

Logic

C.

Emotion

D.

Power

Which of the following are microeconomic factors? Select THREE that apply.

A.

Rates of taxation

B.

Availability of investors

C.

Unemployment levels

D.

Distribution channels

E.

Rates of inflation

F.

Levels of competition

Page: 5 / 5
Total 317 questions
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