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CIPS L4M5 Exam Syllabus Topics:

Section	Objectives
Power, ethics and communication in negotiation	- Influencing factors 1. Ethical considerations in negotiation 2. Communication and interpersonal skills 3. Sources of negotiation power
Negotiation planning and preparation	- Preparation techniques 1. BATNA and reservation points 2. Information gathering and analysis 3. Setting objectives and targets
Negotiation strategies and tactics	- Approaches to negotiation 1. Tactical behaviours and influence techniques 2. Concession strategies 3. Collaborative and competitive strategies
Negotiation fundamentals	- Principles of commercial negotiation 1. Definition and purpose of negotiation 2. Types of negotiation (distributive vs integrative)

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CIPS Commercial Negotiation Sample Questions (Q330-Q335):

NEW QUESTION # 330
Which of the following will help to indicate personality preferences in four dimensions?

A. Myers-Briggs Type Indicator
B. Thomas-Kilmann Conflict Resolution model
C. Intelligence quotient
D. Mill's RESPECT mnemonic

Answer: A

Explanation:
:
The Myers-Briggs Type Indicator (MBTI) is an introspective self-report questionnaire indicating differing psychological preferences in how people perceive the world and make decisions. MBTI indicates personality preferences in four dimensions.
The Thomas-Kilmann Conflict Mode Instrument (TKI) is a conflict style inventory, which is a tool developed to measure an individual's response to conflict situations.
Mill's RESPECT mnemonic is set out by Harry A. Mills which describes seven steps to agreements An intelligence quotient (IQ) is a total score derived from a set of standardized tests designed to assess human intelligence.

NEW QUESTION # 331
A competitive win-lose distributive approach to a negotiation is seeking to:

A. Foster collaboration and trust between the parties to enable joint problem solving
B. Maximise joint gains for both parties so that resources and benefits are equally shared
C. Compromise and split the difference so that both parties do not get what they want
D. Obtain the largest possible share of resources or benefits at the expense of the other party

Answer: D

Explanation:
Reference: CIPS L4M5 Study Guide, Section 1.2 - Approaches to Negotiation

NEW QUESTION # 332
Which of the following is the best description of direct cost?

A. Direct costs include only raw materials and labour of making the final product
B. Direct costs include raw materials, labour and other expenses attributable to the final product
C. Direct costs include raw materials, labour and overheads
D. Direct costs are only variable raw materials that constitute a product

Answer: B

Explanation:
:
Direct costs are those costs of a product/service directly attributable/traceable to its production, for example, the costs of labour and materials directly used to produce the goods/services which the organisation sells.

NEW QUESTION # 333
Listening is a key activity in negotiation. Which of the following are characteristics of effective listeners?
* Showing empathy
* Persuading
* Paraphrasing
* Offering immediate solutions

A. 1 and 2 only
B. 2 and 4 only
C. 3 and 4 only
D. 1 and 3 only

Answer: D

Explanation:
Effective listeners demonstrate empathy and use paraphrasing to confirm understanding. These skills help build rapport, validate the speaker, and ensure accurate interpretation. Persuading and immediate solutions are active interventions, not listening behaviours. CIPS emphasises active listening as central to persuasion and relationship building in negotiation, enabling buyers to uncover underlying interests and respond appropriately.
Reference: CIPS L4M5 (2nd ed.), LO 3.2 - Listening and questioning as persuasive communication tools.

NEW QUESTION # 334
Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power. The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?

A. Shorten payment period but ask for a discount
B. Demand for a discount without any other concessions
C. Agree with supplier's payment period without any further demand
D. Contend on the normal payment period

Answer: A

Explanation:
In the scenario, the length of payment period is particularly important to the supplier as they are investing new facilities. Otherwise, the buyer's company has a positive cash flow position and budget is available for a shorter payment terms. So this tradeable (payment period) is important to supplier but it is not a significant problem with the buyer. This tradeable will fall within 'Easy concession to trade' quadrant in the following matrix:
Table Description automatically generated
If the tradeable fall within this quadrant, Sally should shorten the payment period in supplier's favour and try to win as many concessions as possible in return. Asking for a discount may be a reasonable trade-off.
LO 2, AC 2.3

NEW QUESTION # 335
......

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