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CIPS L4M5 Practice Test Questions Answers

Exam Code: L4M5 (Updated 317 Q&As with Explanation)
Exam Name: Commercial Negotiation
Last Update: 03-Jul-2025
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Questions Include:

  • Single Choice: 251 Q&A's
  • Multiple Choice: 66 Q&A's

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    L4M5 Questions and Answers

    Question # 1

    SBL provides contract bathroom furniture and fittings for a wide variety of domestic and commercial clients. To some suppliers, SBL spend claims a large portion of their revenue. But SBL is famous for imposing draconian obligations on these suppliers. Which of the following is most likely to be overarching objective of these suppliers to SBL?

    A.

    Charge a higher price to compensate for all the pain SBL has put

    B.

    Win and keep business with SBL at any costs, even without profits

    C.

    Drop the business with SBL immediately

    D.

    Hold on and keep SBL happy but make sure that the business is profitable

    Question # 2

    According to Dr. Mari Sako, which of the following is potentially the weakest trust to be built?

    A.

    Competence trust

    B.

    Goodwill trust

    C.

    Charitable trust

    D.

    Contractual trust

    Question # 3

    When is the best time to adopt accommodating style according to Thomas-Kilmann conflict mode instrument?

    A.

    When both buyer and supplier want to find an integrative solution as their concerns are too important to be compromised

    B.

    When buyer needs to gather more information to gain more advantages in later negotiations

    C.

    When preserving harmony and avoiding disruption with supplier are especially important

    D.

    When buyer and supplier have equal power but are strongly committed to mutually exclusive goals

    Question # 4

    A procurement manager has decided to bring in a junior member of their team to a negotiation meeting. Which of the following would be suitable roles for this junior member of the team?

    A.

    1 and 2 (Note taker and Expert)

    B.

    1 and 3 (Note taker and Observer)

    C.

    2 and 3 (Expert and Observer)

    D.

    3 and 4 (Observer and an unspecified fourth option - assumed error)

    Question # 5

    If the price of a good is above the equilibrium price, which of the following will happen?

    A.

    The quantity demanded is equal to the quantity supplied and the price remains unchanged

    B.

    There is a shortage (i.e. an excess demand) and the price will fall

    C.

    There is a surplus (i.e. an excess supply) and the price will rise

    D.

    There is a surplus (i.e. an excess supply) and the price will fall

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