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Quiz 2025 Reliable L4M5: Reliable Commercial Negotiation Test Prep

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CIPS L4M5 Commercial Negotiation exam covers a wide range of topics, including the negotiation process, negotiation planning, the use of different negotiation styles, and the development of negotiation skills. The candidate is expected to have a clear understanding of the different types of negotiations, such as distributive and integrative negotiations, and how to use them effectively in different situations. L4M5 Exam also covers the importance of building and maintaining relationships with suppliers, stakeholders, and clients.

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CIPS Commercial Negotiation Sample Questions (Q172-Q177):

NEW QUESTION # 172
Which of the following are most likely to be sources of conflict that can emerge from the process of commercial negotiations? Select TWO that apply.

A. Types of purchase
B. Differences in culture
C. Line of the best fits
D. Differences in conflict management style
E. Standard terms and conditions

Answer: B,D

Explanation:
There are multiple sources of divergent positions that can arise in situations where money is exchange for goods and services. There are 2 different types of sources. Those that arise from the content or subject matter of the negotiation (what is being negotiated) and those that arise from the process of negotiation (how it is being negotiated).
Sources of divergent positions - the process of negotiation:
Table Description automatically generated

Line of best fits is the line that goes approximately through the middle of the data points with an equal number of data points above and below it. Line of best fits is a method of calculating medium value in statistics.
Standard terms and conditions are basic terms and conditions of business governing transactions that do not have a definitive contract, usually designed to be included in form documents such as orders. While there may be conflicts regarding standard terms and conditions, they are about the content of negotiation, not the process.
Type of purchase: when buying organisation makes an decision to purchase an item, a buyer is faced with three possible scenarios. The item to be bought could be a straight re-buy, a modified re-buy or a new purchase. Decision on type of purchase is purely an internal decision.

NEW QUESTION # 173
Which of the following types of questions should be used most often in the proposing phase?

A. Probing questions
B. Hypothetical questions
C. Closed questions
D. Open questions

Answer: B

Explanation:
Explanation
At the proposing phase either side may start making tentative proposals regarding their offering. In the case of negotiation where TOP has already submitted a tender or proposal, this stage may provide an opportunity for them to make proposals to improve on their initial offers in general or in areas highlighted by the buying side in advance.
The word 'if' is very useful at this stage andallows you to test tentative proposals without committing yourself.
Skilled negotiators use language very carefully. The questions with 'if' are hypothetical ones.
LO 3, AC 3.1

NEW QUESTION # 174
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. In all forms of negotiation as each party is always trying to gain advantage over the other
B. When the supplier is likely to respond with further concessions to maintain a long-term relationship
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

Answer: D

NEW QUESTION # 175
If the price of a good is above the equilibrium price, which of the following will happen?

A. There is a surplus (i.e. an excess supply) and the price will fall
B. There is a surplus (i.e. an excess supply) and the price will rise
C. There is a shortage (i.e. an excess demand) and the price will fall
D. The quantity demanded is equal to the quantity supplied and the price remains unchanged

Answer: A

Explanation:
In microeconomics, equilibrium price is determined when the quantity demanded is equal to the quantity supplied at equilibrium price in a market, there will be no shortages and no surpluses. If we combine our supply and demand curves on one graph, the point at which they converge determines the equilibrium price. If the price is set above this price and you read across the graph you will see the supply excess demand and there will be a surplus. In order to reduce this surplus, the price will need to fall. The scenario is illustrated in the graph below:
Chart, line chart Description automatically generated

NEW QUESTION # 176
Which of the following is most likely a consequence of falling interest rate?

A. Decreaseconsumption
B. Increase savings
C. Decrease investment
D. Increase aggregate demand

Answer: D

Explanation:
If interest rate are too low and credit is too, cheap rates can fund a spending boom with consumers and businesses buying (investment) more than they can afford to pay back.

NEW QUESTION # 177
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