Free PDF Quiz 2025 Trustable L4M5: Commercial Negotiation Reliable Test Price
Free PDF Quiz 2025 Trustable L4M5: Commercial Negotiation Reliable Test Price
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CIPS L4M5 Certification Exam is suitable for individuals who are involved in commercial negotiations, either as buyers or sellers, and who want to improve their negotiation skills. L4M5 exam covers a range of topics, including negotiation planning, strategies and tactics, communication, ethics and legal issues, and relationship management. By passing the exam, candidates demonstrate their ability to negotiate effectively in a variety of commercial situations, and to create value for their organizations through successful negotiations.
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The CIPS L4M5 exam format comprises multiple-choice questions and a case study that requires the candidate to apply their knowledge of negotiation skills in a practical scenario. The case study is designed to test the candidate's ability to identify the key issues and stakeholders involved, develop a negotiation strategy, and apply appropriate tactics to achieve a positive outcome. L4M5 Exam Duration is two hours, and the candidate must achieve a minimum of 50% to pass.
CIPS Commercial Negotiation Sample Questions (Q293-Q298):
NEW QUESTION # 293
Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation?
1. Depersonalise the argument
2. Focus on positions
3. Generate creative options
4. Using subjective criteria
- A. 2 and 4 only
- B. 2 and 3 only
- C. 1 and 4 only
- D. 1 and 3 only
Answer: D
Explanation:
Principled negotiation is based on four fundamentals: people, interest, options and criteria:
Diagram Description automatically generated
1st Principle: separate the people from the problem: Negotiator should depersonalise the situation and accepting that the subject matter of the negotiation. This can be difficult for untrained negotiators, but this is a key skill to develop
2nd principle: focus on interests, not positions: It is important in principled negotiations not to focus on their parties' positions (what are expressed during negotiations), but on the interests (underlying needs) behind them
3rd principle: invent options for mutual gains: this principle aims to help the parties find a solution that both would benefit from. The more options - or tradeables - that can be brought to the table the better.
4th principle: insist on using objective criteria: is about making sure that the negotiation stays focused on outcomes based on objective criteria and that it is productive.
LO 1, AC 1.2
NEW QUESTION # 294
When is the best time in procurement process in which procurement should get involved so that the cost- saving opportunities are the greatest?
- A. Post-tender stage
- B. Post-contract stage
- C. Market consult stage
- D. Specification stage
Answer: D
Explanation:
The earlier procurement get involved in the procurement processes, the better. If procurement are involved in design at the specification stage they can feed in prices and costs to designer so they know the likely budget implication of choices made. Sending in a procurement team to negotiate at or close to the end of the procurement process effectively ties their hands and limits their negotiation leverage. This is illustrated in the graph below:
Chart Description automatically generated
LO 2, AC 2.1
NEW QUESTION # 295
John Browne, a junior buyer for a corporation, is analysing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research. Should John consider the foreign exchange rates?
- A. No, exchange rates only apply to the national economy
- B. Yes, only if the organisation can handle foreign currencies in their accounts
- C. No, as they only affect the bank's interest rates for loans
- D. Yes, as they can affect profit and turnover
Answer: D
NEW QUESTION # 296
Where a negotiator uses numerical reasoning with facts as part of their negotiation approach, which of the following techniques will they be adopting?
- A. Emotion
- B. Power
- C. Logic
- D. Threat
Answer: C
Explanation:
Using logic involves applying numerical data and factual evidence to support arguments in a negotiation.
Logical reasoning appeals to objective analysis rather than emotional or coercive tactics and is effective in convincing the other party through structured, fact-based arguments, aligning with CIPS's guidance on logical negotiation techniques.
NEW QUESTION # 297
A negotiation is coming to the end. Both parties haven't had any official commitments. Right before leaving the room, the buyer strongly disagrees with supplier's set up prices and requests a discount. The supplier doesn't reply but nods and smiles. Can the buyer consider these actions as an acceptance?
- A. Yes, because smiling shows supplier's readiness in signing the deal off
- B. No, because nodding and smiling are not clear signs of neither acceptance nor rejection
- C. No, because nodding and smiling are etiquette of polite rejection
- D. Yes, because negotiator should rely on non-verbal communications only
Answer: B
Explanation:
Good negotiators are attuned to all stimuli and not just the verbal and written information exchanged. Tone of voice, body language, facial expressions and other clues from TOP are noticed, and with experience and knowledge, interpreted correctly. This interpretation may also involve knowledge of culture norms and values. A smile, a 'yes' and the type of hospitality received, (in the business context), can mean very different things in different international business cultures.
Trained negotiators will consider non-verbal communication (such as nodding and smiling) and body language as one source of signal from TOP, but will rarely rely wholly on this as a guide to what TOP is thinking or feeling. Furthermore, international and regional cultural considerations must be included here to avoid errors in interpretation. Emotional intelligence also has an important role in forming a more holistic perspective of what TOP may be thinking or feeling.
NEW QUESTION # 298
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