CIPS L4M5 Commercial Negotiation Online Training
CIPS L4M5 Online Training
The questions for L4M5 were last updated at Apr 26,2025.
- Exam Code: L4M5
- Exam Name: Commercial Negotiation
- Certification Provider: CIPS
- Latest update: Apr 26,2025
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
The stage in the product life cycle
- A . 1 and 2 only
- B . 1 and 4 only
- C . 2 and 3 only
- D . 3 and 4 only
Which of the following is active listening?
- A . Encouraging the other party to do all the talking
- B . Agreeing with what the other party has to say
- C . Summarising what has been said
- D . Ignoring what the other party has to say
An adversarial style of negotiation is appropriate where the buyer has greater bargaining power over the supplier. In what other situations may the buyer adopt this style of negotiation?
- A . When the supplier is a monopolist and some advantages need to be gained from the agreement
- B . In a market that is full of alternative sources and substitute products
- C . Where there is a single sourcing strategy to eliminate the competing suppliers and retain only one
- D . In a market where the buyers are competing for fewer supply sources
Lina Rawlins is a senior buyer working for a medical equipment company. Lina is in charge of the company’s largest supplier account, Great Barrington Gas (GBG), a medical equipment supplier. Recently, GBG’s performance has declined, leading to an increasing number of rejected items. Lina is aware of the seriousness of this and has asked GBG to attend an urgent meeting. In the meeting, Lina asked the GBG representative, “Can you tell me exactly what you are doing to ensure quality?"
What type of question is Lina asking?
- A . Probing
- B . Leading
- C . Reflective
- D . Hypothetical
Langham Industries is seeking to expand its operations globally. The CEO has asked the procurement department to engage in a macroeconomic analysis for its potential new supply chain to meet organisational objectives and outcomes.
Which of the following would be a source of macroeconomic data?
- A . Competitor analysis
- B . Attending trade conferences
- C . Published market indices
- D . Online supplier forums
Tony is undertaking a negotiation with a strategic supplier and is frustrated by the lack of progress. He proposes using threats to get what he wants from the negotiations.
Is this the correct course of action?
- A . Yes, Tony will get what he requires from the negotiations
- B . Yes, a long-term relationship is not required with the supplier
- C . No, a long-term relationship built on trust is required with the supplier
- D . No, it does not guarantee Tony will get what he requires from the negotiations
During a negotiation, Jose Gomez, the salesperson for a strategic supplier, states that his sales director will not approve discounts against initial purchases. However, Jose offers a 5% discount on the aftercare package, which will provide the same monetary saving. Sally Pampas requires both the product and the aftercare package and has an objective to achieve a 5% discount off the purchase price. To achieve a win-win (integrative) negotiation, Sally should…
- A . Ask Jose to apply a 15% discount against the purchase price
- B . Accept the offer of a 5% discount against the aftercare package
- C . Decline the offer and walk away from the negotiation
- D . Ask Jose to apply the 5% discount against the purchase price
Any commercial negotiation process has only three potential stakeholders: procurement, the budget holders, and the users. Is this TRUE?
- A . Yes, and the budget holder is the most important one because of the finances involved
- B . Yes, the role of procurement is to ensure that the technical specifications are fit for purpose
- C . No, only procurement, the user, and suppliers have an interest in the products negotiated
- D . No, other stakeholders, such as directors, and IT might also be interested in the negotiation outcomes
John Browne, a junior buyer for a corporation, is analyzing 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, as they only affect the bank’s interest rates for loans
- B . Yes, only if the organization can handle foreign currencies in their accounts
- C . Yes, as they can affect profit and turnover
- D . No, exchange rates only apply to the national economy
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