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CIPS L4M5 Exam (page: 6)
CIPS Commercial Negotiation
Updated on: 25-Dec-2025

Viewing Page 6 of 56
L4M5 PDF 275 Questions

Which of the following can be prepared before a negotiation with a supplier to achieve an agreement to benefit both parties?

Zone of potential agreement
Attendee list for the negotiation talks
Walk-away point
Venue for the negotiation talks

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

Answer(s): B

Explanation:

Zone of Potential Agreement (1) and Walk-away point (3) are key elements in negotiation planning. Establishing a Zone of Potential Agreement helps identify where interests align, while the Walk-away point sets the limit of acceptable terms. Both are essential to preparing a negotiation framework that benefits both parties, as per CIPS best practices.



Effective listening is important in integrative negotiations. Is this statement correct?

  1. Yes, as it allows issues to be shared and understood between all parties
  2. Yes, as it means the supplier's attempts at negotiation can be stopped quickly with reasoning
  3. No, as what the other party has to say is not important
  4. No, as effective listening is important only in a distributive negotiation

Answer(s): A

Explanation:

Effective listening is crucial in integrative negotiations because it promotes understanding and collaboration. By actively listening, parties can identify shared interests and address concerns, which supports the goal of reaching mutually beneficial solutions. This is a key component in CIPS guidelines on successful integrative negotiation practices.



A procurement expert has been asked to ensure they consider emotional intelligence in their negotiation strategy. They have agreed to this and have started planning their approach.
Which of the following describes emotional intelligence?

  1. An individual's ability to gain leverage by persuading the other party to agree to their terms
  2. An individual's ability to fully understand another party's cost drivers and profit margins
  3. An individual's ability to understand their own feelings and those of other people
  4. An individual's ability to place themselves in a position of authority during a negotiation

Answer(s): C

Explanation:

Emotional intelligence involves the ability to recognize and manage one's emotions and empathize with others. This skill allows negotiators to respond appropriately to both their own feelings and the emotional cues of the other party, fostering a more constructive and adaptive negotiation environment. CIPS highlights emotional intelligence as a valuable asset in understanding and influencing negotiation dynamics.



Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.

  1. Ratification
  2. Rule ethics
  3. Framing and re-framing
  4. Validation
  5. Anchoring

Answer(s): C,E

Explanation:

Framing and re-framing (C) and Anchoring (E) are powerful influencing techniques:

Framing and re-framing (C): This technique shapes how information is presented to make specific aspects more compelling or relevant.
Anchoring (E): Anchoring sets an initial reference point, which influences how subsequent information is perceived.
These techniques help negotiators control the flow and focus of discussions, aligning with CIPS recommendations for strategic influence in negotiations.



When might a buyer decide to use a distributive approach to a negotiation with a supplier?

  1. When they are dependent on that supplier in the future
  2. When there are various suppliers in the market producing a similar product
  3. When procuring an item that is not strategic to the organisation
  4. When a working relationship is important in the future

Answer(s): B

Explanation:

A distributive approach is appropriate when multiple suppliers offer similar products, as this competitive environment allows the buyer to focus on maximizing their position rather than building long-term partnerships. CIPS suggests that a distributive or competitive approach is best used in non- critical purchases or when supplier dependency is low, as is the case here.



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

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