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| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Commercial Negotiation |
| Exam Number: | L4M5 |
| Available Languages: | English |
| Real Exam Qty: | 60 (typical objective test format) |
| Exam Duration: | 120 minutes |
| Certificate Validity Period: | CIPS qualifications do not typically expire once awarded |
| Passing Score: | 70% (typical CIPS objective test pass mark) |
| Exam Format: | Multiple-choice questions, Computer-based objective test |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Recommended Training: | CIPS Learning Support CIPS Official Study Resources |
| Exam Registration: | Find a CIPS Exam Centre / Booking CIPS Qualifications Information |
| Sample Questions: | CIPS L4M5 Sample Questions |
| Exam Way: | Computer-based exam (online proctored or test centre depending on provider) |
| Pre Condition: | No formal prerequisites, but CIPS Level 3 or equivalent knowledge is recommended as part of progression to Level 4 Diploma. |
| Official Syllabus URL: | https://www.cips.org/qualifications-and-training/level-4-diploma-in-procurement-and-supply/ |
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CIPS L4M5 (Commercial Negotiation) certification exam is designed to assess the skills and knowledge of professionals in the field of commercial negotiation. Commercial Negotiation certification is ideal for those who are involved in negotiating contracts, deals, and agreements with suppliers, customers, and other stakeholders. It is also beneficial for those who are responsible for managing procurement and supply chain activities.
NEW QUESTION # 75
A procurement professional is preparing for a negotiation of purchasing non-critical commodity products. He knows that the product can be easily replaced by other substitutes in the market. The negotiation for these products is typified by which of the following?
Answer: D
Explanation:
Explanation
With non-critical commodity products, the relationship will be transactional. Buyer should not spend too much time and effort into the negotiation.
Table Description automatically generated
LO 1, AC 1.4
NEW QUESTION # 76
Which TWO strategies are recognised for achieving a win-lose outcome?
Making the other party lower its resistance point
Making the other party believe this settlement is the best it can achieve Employing empathy to gain mutual understanding Using compromise and creativity tactics
Answer: A
Explanation:
Win-lose strategies focus on gaining advantage at the other party's expense. Forcing them to lower their resistance point or persuading them the deal is their best option are classic distributive tactics. Empathy, compromise, and creativity belong to integrative approaches aimed at mutual benefit. Recognising these distinctions ensures negotiators adopt the right strategy for the relationship type and context.
Reference: CIPS L4M5 (2nd ed.), LO 1.1 - Strategies for distributive (win-lose) negotiation.
NEW QUESTION # 77
Which of the following is the purpose of using stakeholder support level scale?
Answer: C
Explanation:
In order to estimate the gap and the progress towards desired level of support, a stakeholder support scale can be used by the procurement internally. The support level scale measures stakeholder commitment. Current support level for the procurement/negotiation objectives should be gained from engagement with key stakeholders. The following is an example of stakeholder support level scale:
LO 1, AC 1.1
NEW QUESTION # 78
A negotiation meeting between a buyer and supplier has taken several hours. Both parties believe the negotiation is starting to reach a close. Before the supplier makes their closing statements, they are most likely to be doing which of the following?
Answer: B
Explanation:
As negotiations near closure, skilled negotiators carefully observe for buying signals-verbal cues ("That sounds reasonable...") and non-verbal cues (nodding, smiling, leaning forward). These indicate readiness to agree and confirm whether it is the right time to close. At this stage, both sides usually stop gathering data or building rapport, as the focus is on confirming alignment and avoiding last-minute derailments. Closing too early may risk missing concessions, but delaying risks cooling momentum. Recognising buying signals ensures closure occurs at the optimal point, aligning with preparation and tactical awareness.
Reference: CIPS L4M5 (2nd ed.), LO 2.2 - Negotiation stages: opening, testing, bargaining, closing; cues to close.
NEW QUESTION # 79
Power is used only in adversarial negotiation situations to secure a 'win' outcome against the other side. Is this statement correct?
Answer: D
Explanation:
Reference: CIPS L4M5 Study Guide, Section 1.2 - Approaches to Negotiation
NEW QUESTION # 80
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