CIPS L4M5 Commercial Negotiation Online Training
CIPS L4M5 Online Training
The questions for L4M5 were last updated at Apr 22,2025.
- Exam Code: L4M5
- Exam Name: Commercial Negotiation
- Certification Provider: CIPS
- Latest update: Apr 22,2025
A wide range of factors may be taken into account by suppliers when setting or negotiating prices.
Which of the following are external factors in pricing decisions? Select TWO that apply.
- A . Competition in the market
- B . Cost of production
- C . Where the product is in its lifecycle
- D . Customer perception of value
- E . Costs of sales
Which of the following roles would support negotiations with an external supplier when planning a negotiation for a low-value, routine purchase? Select TWO that apply.
- A . The Human Resource (HR) manager
- B . A legal advisor
- C . The procurement manager
- D . The Chief Executive Officer (CEO)
- E . An internal business user
The stages of commercial negotiation involve which of the following characteristics?
- A . Preparation, proposal, bargain, leave
- B . Open, testing, bargaining, closing, revisiting
- C . Preparing, opening, bargaining, agreement, closure
- D . Opening, debating, promising, testing, disagreeing, closing
Which of the following constitutes a key element to developing high-trust supplier relationships?
- A . Contract management
- B . Supplier audits
- C . Delivering on commitments
- D . Information gathering
The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer’s greater bargaining power over the suppliers.
In what other circumstances should an adversarial relationship be used?
- A . When the supplier is likely to respond with further concessions to maintain a long-term relationship
- B . In all forms of negotiation as each party is always trying to gain advantage over the other
- C . In a monopoly market as the supplier will respond by conceding quantity discounts
- D . When the issues concerned are non-negotiable, for example, health and safety commitments
The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer’s greater bargaining power over the suppliers.
In what other circumstances should an adversarial relationship be used?
- A . When the supplier is likely to respond with further concessions to maintain a long-term relationship
- B . In all forms of negotiation as each party is always trying to gain advantage over the other
- C . In a monopoly market as the supplier will respond by conceding quantity discounts
- D . When the issues concerned are non-negotiable, for example, health and safety commitments
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
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 is a description of mark-up?
- A . Profit expressed as a percentage of the selling price
- B . Profit expressed as a percentage of costs
- C . Profit expressed as a percentage of fixed costs
- D . Profit expressed as a percentage of variable costs
Fast & Easy Limited, a global fast food retailer, is in a negotiation with its major meat supplier. The supplier is asking for a 2% price increase, which Fast & Easy is strongly resisting. The supplier justifies this increase by stating that currency fluctuations, an unstable economic climate, and rising transport costs have necessitated this increase.
Which influencing tactic is the supplier using?
- A . Rational persuasion
- B . Inspirational appeal
- C . Coalition
- D . Personal appeal
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