Free Preparation Discussions
MENU
CIPS L4M5 Exam Questions
- Topic 1: Analyse the application of commercial negotiations in the work of procurement and supply/ Negotiation in relation to the stages of the sourcing process
- Topic 2: Understand key approaches in the negotiation of commercial agreements with external organisations/ Sources of conflict that can arise in the work of procurement and supply
- Topic 3: Team management and the influence of stakeholdebest alternative to a negotiated agreement (BATNA)rs in negotiations/ Definitions of commercial negotiation
- Topic 4: Setting targets and creating a / Collaborative win-win integrative approaches to negotiations
- Topic 5: Differentiate between the types of approaches that can be pursued in commercial negotiations/ Distributive win-lose, distributive approaches to negotiation
- Topic 6: Organisational power: comparing the relative power of purchasers and suppliers/ Explain how the balance of power in commercial negotiations can affect outcomes
- Topic 7: How purchasers can improve leverage with suppliers/ The importance of power in commercial negotiations
- Topic 8: Building relationships based on reputation, and trust/ Repairing a relationship/ The relationship spectrum
- Topic 9: Identify the different types of relationships that impact on commercial negotiations/ Pragmatic and principled styles of negotiation
- Topic 10: Costing methods such as absorption, marginal or variable and activity-based costing/ Know how to prepare for negotiations with external organisations
- Topic 11: Macroeconomics and its influence on commercial negotiations/ Contrast the economic factors that impact on commercial negotiations
- Topic 12: Setting objectives and defining the variables for a commercial negotiation/ Use of telephone, teleconferencing or web-based meetings
- Topic 13: How behaviours should change during the different stages of a negotiation/ Compare the key communication skills that help achieve desired outcomes
- Topic 14: Analyse how to assess the process and outcomes of negotiations to inform future practice/ Protecting relationships after the negotiation
Free CIPS L4M5 Exam Actual Questions
Note: Premium Questions for L4M5 were last updated On Jul. 08, 2026 (see below)
A buyer is approaching a negotiation where the company is in a low-power negotiating position in relation to the supplier. How can the buyer improve leverage and power with the supplier?
A supplier has offered international football tickets to the procurement manager while they are in the middle of a contract negotiation. What should the procurement manager do?
Accepting gifts during a negotiation can createconflict of interestconcerns and may violate ethical standards. Best practice requires rejecting such offers to maintain transparency and objectivity in decision-making.
Win-lose approach is most likely to be associated with which of the following type of relationship?
Distributive approach to negotiation used when the interested parties are attempting to divide something up or distribute something of value, also known as zero-sum approach or win-lose. Win-lose approach is useful when the relationship with the other party (TOP) is short-term and once-off.
The question mentions 4 types of relationship:
Adversarial: Both seek to maximize position at the expense of the other. Almost no trust, communication and cooperation. These suppliers will probably provide non-core products or services with the buyer purchasing them on a one-off basis.
Outsourcing relationship: Use competent suppliers to manage non-core businesses previously done in-house. Require high level of trust and collaboration
Partnership: Both work closely on long term development by sharing information, technology and ideas.High level of trust with the aim to benefit both parties (win-win)
Strategic alliance: Both parties identify areas where they could collaborate to create mutual benefits
Among these 4 types of relationship, only adversarial is once-off. Then it is the correct answer.
Where a market consists of a large producer with high power, it is known as ...
A monopoly occurs when a single supplier dominates a market, giving them high bargaining power over buyers. By contrast, monopsony is where a single buyer dominates, oligopoly involves a few large suppliers, and monopolistic competition refers to many suppliers with differentiated products. Monopoly power in negotiations means buyers have reduced leverage and may need to rely on regulatory frameworks or collaborative strategies to balance outcomes.
Stalemate is more likely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?
Negotiation variables such as price or contract length, etc are that can be traded with TOP in a negotiation. The more variables you can identify, the better. The more variables you can identify and articulate, the lower the chances of the negotiation reaching deadlock as more possibilities are facilitated regarding more creative solutions.
Below are examples of negotiation tradeables in buying professional services:
LO 2, AC 2.3
- Select Question Types you want
- Set your Desired Pass Percentage
- Allocate Time (Hours : Minutes)
- Create Multiple Practice tests with Limited Questions
- Customer Support
Rebecca Edwards
11 days agoEmma Scott
19 days agoStephen Bell
1 month agoBrenda Baker
2 months agoJennifer Perez
2 months agoMaria Scott
3 months agoEmily Green
2 months agoDorothy Roberts
3 months agoBrian Clark
2 months agoPatricia Adams
2 months agoDonna Phillips
2 months agoChery
3 months agoMan
4 months agoCasey
4 months agoDenny
4 months agoLino
4 months agoBrandee
5 months agoCristy
5 months agoGerri
5 months agoBroderick
5 months agoDottie
6 months agoLeah
6 months agoRichelle
6 months agoLeana
6 months agoFelicitas
7 months agoVenita
7 months agoNoemi
7 months agoTabetha
7 months agoLeonida
8 months agoJani
8 months agoBrittani
8 months agoHyun
8 months agoEdward
9 months agoRebecka
9 months agoThurman
9 months agoClemencia
9 months agoSocorro
10 months agoLinn
10 months agoDelisa
10 months agoShawna
10 months agoBarrett
10 months agoRolland
10 months agoTula
10 months agoLashawn
1 year agoLorita
1 year agoLashawna
1 year agoGerman
1 year agoLashanda
1 year agoDino
1 year agoLili
1 year agoPansy
1 year agoCharlena
1 year agoSalome
1 year agoDalene
1 year agoStaci
1 year agoCharlene
1 year agoChristene
1 year agoIdella
2 years agoPeggie
2 years agoBenton
2 years agoShawna
2 years agoLajuana
2 years agoLeana
2 years agoEugene
2 years agoMarylyn
2 years agoRikki
2 years agoHermila
2 years agoAleta
2 years agoJodi
2 years agoEllen
2 years agoDevorah
2 years agoStephaine
2 years agoHarris
2 years agoMyra
2 years agoInocencia
2 years agoAnnice
2 years agoVanesa
2 years agoLenna
2 years agoJordan
2 years ago