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CIPS L4M5 Exam (page: 2)
CIPS Commercial Negotiation
Updated on: 25-Dec-2025

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L4M5 PDF 275 Questions

For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation.
Which one of the following could help?

  1. Involve a larger team than the other party
  2. Involve an appropriate cross-functional team
  3. Involve a team of only senior managers
  4. Involve a location-based team only

Answer(s): B

Explanation:

Involving an appropriate cross-functional team is beneficial for effective commercial negotiation because it brings together diverse perspectives and expertise relevant to the negotiation context.

According to CIPS, a cross-functional team ensures that all aspects, such as technical, financial, and operational inputs, are considered, leading to more balanced and informed decision-making. This approach also helps in addressing complex negotiation elements effectively.



What are the potential sources of conflict between the buyer and supplier? Select TWO that apply.

  1. Persistent late payment of the supplier's invoices
  2. Unequal sharing of gains, risks, and costs with the supplier
  3. Requesting early supplier involvement
  4. Planning scheduled visits to the supplier site
  5. Scheduling agreed supplier delivery dates

Answer(s): A,B

Explanation:

Persistent late payment of the supplier's invoices (A) and Unequal sharing of gains, risks, and costs with the supplier (B) are potential sources of conflict as they create dissatisfaction and imbalance in the relationship. According to CIPS materials:

Late payments (A) can strain the supplier's cash flow, affecting their operational stability and leading to mistrust in the buyer.

Unequal sharing of gains, risks, and costs (B) can result in one party feeling exploited or unfairly treated, which undermines the collaborative spirit essential for long-term partnerships.

In contrast, requesting early supplier involvement, planning visits, or setting delivery dates are typically part of constructive relationship management practices and do not inherently lead to conflict.



When developing a negotiation approach, according to recognised theory (for example, Mendelow), how should stakeholders with high interest but low power be managed?

  1. Minimal effort
  2. Key player
  3. Keep informed
  4. Keep satisfied

Answer(s): C

Explanation:

According to Mendelow's Stakeholder Matrix, stakeholders with high interest but low power should be managed by keeping them informed. These stakeholders are invested in the outcome but lack the influence to change it, so keeping them updated helps in maintaining their support and managing expectations without intensive resources or prioritization. This approach aligns with CIPS guidance on stakeholder management in negotiation planning.



A procurement professional is dissatisfied with how a recent negotiation was concluded.
What could they do to improve their negotiation approach?

Seek feedback from the supplier on their recent performance Prepare for all negotiations with a WIN/LOSE (distributive) approach Involve lots of people in future negotiations
Undertake reflective practice after each negotiation

  1. 1 and 3
  2. 2 and 3
  3. 1 and 4
  4. 3 and 4

Answer(s): C

Explanation:

To improve negotiation outcomes, seeking feedback from the supplier (1) and undertaking reflective practice (4) are recommended actions. Feedback from the supplier can provide insights into areas for improvement from the counterparty's perspective, while reflective practice allows the negotiator to evaluate their own approach, outcomes, and areas for growth. This approach aligns with CIPS's emphasis on continuous improvement in negotiation skills.



Maria has adopted an adversarial style relationship with her stationery supplier. This relationship style can be characterised by which of the following? Select the TWO that apply.

  1. Minimal sharing of information
  2. Requirement to exceed expectations
  3. Degree of mutual commitment
  4. Use of power to seek the best possible deal
  5. Requirement to secure quality of supply

Answer(s): A,D

Explanation:

An adversarial relationship is characterized by a competitive, often zero-sum approach where:

Minimal sharing of information (A): In adversarial settings, there is limited transparency as each party prioritizes its interests.

Use of power to seek the best possible deal (D): Power dynamics are leveraged to gain favorable terms, often at the expense of the other party.

This style typically lacks collaboration and mutual commitment, focusing instead on short-term gains rather than building a partnership, as described in CIPS resources on adversarial relationships.



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Share your comments for CIPS L4M5 exam with other users:

Katiso Lehasa 9/15/2025 11:21:52 PM

Thanks for the practice questions they helped me a lot.
Anonymous