L4M5 Dumps (V11.02) 2026 with Latest Questions & Answers for CIPS Commercial Negotiation – L4M5 Free Dumps (Part 1, Q1-Q40) Online

1. 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?

2. Which of the following roles would support negotiations with an external supplier when planning a negotiation for a low-value, routine purchase? Select TWO that apply.

3. For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation.

Which one of the following could help?

4. What is the most likely outcome when two organisations with adversarial relationship negotiate with each other?

5. Which of the following is the definition of safety margin?

6. Which of the following are microeconomic factors? Select THREE that apply.

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

8. Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.

9. Which of the following is a description of mark-up?

10. A purchasing organisation is discussing its approach to an upcoming negotiation with a key supplier over a contract for critical new services. They have decided they want to find a Win/Win (integrative) solution.

Which TWO of the following would be appropriate in this scenario?

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

12. Different types of relationships impact commercial negotiations.

At a negotiation, which one of the following sources would help to support leverage for the buyer?

13. A purchasing manager is having a negotiation with a supplier to extend the duration of the contract. In order to persuade the supplier to cut the cost by 10%, she promises to shorten the payment period from 45 days to 30 days for each delivery. The supplier's representative does not agree the offer and clearly states that his proposed price is already lower than the market price.

The purchasing manager has used which type of power?

14. When is the best time for buyer to propose the negotiation agenda to potential supplier?

15. Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms.

Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply

16. During a negotiation, Jose Gomez, the salesperson for a strategic supplier, states that his sales director will not approve discounts against initial purchases. However, Jose offers a 5% discount on the aftercare package, which will provide the same monetary saving. Sally Pampas requires both the product and the aftercare package and has an objective to achieve a 5% discount off the purchase price.

To achieve a win-win (integrative) negotiation, Sally should...

17. 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.

18. According to Professor Gavin Kennedy, in which of the following forms of dispute resolution, both parties will voluntarily exchange their ideas and beliefs?

19. Hammad Alsuwaidi is a procurement professional leading a negotiation for a vehicle rental contract. Hammad has a clear goal to negotiate a two-year contract in exchange for a minimum of a 20% discount. During the negotiation, Hammad presents to the supplier the facts, figures, and justification for a 20% discount.

Which of the persuasion methods below has Hammad chosen?

20. Rose is a senior buyer from a skiing equipment retailer. Rose is concerned about the current ski boot shortage and the number of invoicing problems from a key supplier. She has decided to have a video conference with Victor, CEO of the supplier. Initially, she intends to threaten Victor with contract termination unless he can improve the situation. However, she is a little wary of doing this as the switching costs are high. Eventually, she decides to seek solutions by encouraging the other party to offer their views and ideas. Rose also prepares some ideas to discuss with Victor.

Which of the following is the persuasion method that Rose intends to use in the forthcoming conference?

21. John Browne, a junior buyer for a corporation, is analyzing the global supply market before undertaking negotiations and is wondering whether foreign exchange rates are important to factor into his research.

Should John consider the foreign exchange rates?

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

23. Which of the following are tools that help procurement visualise cost breakdowns of products and services purchased from supplier?

1. Spend candlesticks

2. Spend tree

3. Aggregate expenditure model

4. Spend waterfall

24. In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares in response to market conditions.

Dynamics pricing is based on which costing method?

25. Langham Industries is seeking to expand its operations globally. The CEO has asked the procurement department to engage in a macroeconomic analysis for its potential new supply chain to meet organisational objectives and outcomes.

Which of the following would be a source of macroeconomic data?

26. The bargaining power of buyers is likely to be high in relation to suppliers in which of the following situations?

27. A procurement manager has decided to bring in a junior member of their team to a negotiation meeting.

Which of the following would be suitable roles for this junior member of the team?

1. Note taker

2. Expert

3. Observer

4. Chair

28. Which of the following is NOT a barrier to entry in a monopolized market?

29. A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following?

30. A procurement professional is preparing for a negotiation with supplier. She is setting targets for price which her company is seeking to achieve.

Which of the following acronyms can help her identify limits before engaging in the negotiation?

31. Which of the following are typical characteristics of activity-based costing (ABC) method? Select TWO that apply.

32. Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply.

33. Which of the following is the first step in the development of negotiation strategies?

34. Which of the following are features of a single-sourced type of relationship on the relationship spectrum?

1. Exclusivity granted in relation to a particular product

2. The supplier is an oligopoly market structure

3. The supplier is trusted and collaborative

4. Framework contracts are used to identify the supplier

35. An organization should develop different relationships which are appropriate to each supplier situation.

Which ONE of the following analysis methods could help to identify these?

36. If the price of a good is above the equilibrium price, which of the following will happen?

37. Are tactical ploys only used in distributive approach?

38. Which of the following are internal factors when a supplier is making its pricing decision?

1. Price elasticity of demand

2. Environmental legislation

3. Risk management

4. The stage in the product life cycle

39. Which of the following stages of the CIPS Procurement Cycle are typically where commercial negotiations take place?

1. Contract management and improvement

2. Develop tender documentation

3. Market sector analysis

4. Contract award and implementation

40. Which of the following are most likely to turn buying organisation into an unattractive customer in supplier's perspective? Select TWO that apply.