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CIPS L4M5 exam is an essential certification for procurement professionals seeking to enhance their negotiation skills. It covers a range of topics, including negotiation planning, power and influence, communication skills, and conflict resolution, making it a practical and relevant qualification. L4M5 Exam is recognized globally as a standard of excellence in commercial negotiation, and it is a valuable certification for procurement professionals seeking to improve their career prospects and demonstrate their expertise to potential employers.

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CIPS Commercial Negotiation Sample Questions (Q96-Q101):

NEW QUESTION # 96
Can a party gain huge advantages in negotiation from setting room layout?

A. No, because the advantages gained from manipulating room layout are short-lived
B. Yes, because the other party can capitulate to the host
C. No, because room layout contributes nothing to the negotiation outcomes
D. Yes, because the host can freely manipulate the other party's mind through setting room layout

Answer: A

Explanation:
:
Essentially, for trained negotiators under most circumstances, the physical locations of negotiations and the room layout should not make much difference to the outcomes of the meeting. It is reasonable to assume that most commercial negotiations are based at least initially on a principled- or pragmatic-type approach. It is arguable also that any advantage gained through intentionally creating an uncomfortable environment to put short-term pressure on TOP is likely to be short-lived as TOP will likely reflect on this later and seek means to get even.

NEW QUESTION # 97
There are no commitments in hypothetical questions. Is this statement true?

A. Yes, because hypothetical questions generate a specific response
B. Yes, because hypothetical questions only mention possible situations
C. No, because the party who makes hypothetical questions cannot withdraw their proposals
D. No, because hypothetical questions are made explicitly to the other party

Answer: B

Explanation:
Explanation
There are four types of questions that can be used in a commercial negotiation:
Hypothetical questions, where you ask about a possible situation or abstract concept, are very useful at the testing and proposal phases. Hypothetical question does not state any commitment as it is only about 'if something happens, then ...'. This type of question can be useful at giving suggestion.
Text Description automatically generated

LO 3, AC 3.3

NEW QUESTION # 98
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. When the issues concerned are non-negotiable, for example, health and safety commitments
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. In all forms of negotiation as each party is always trying to gain advantage over the other

Answer: A

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

NEW QUESTION # 99
An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation?

A. Yes, because the visit would increase the buyer's bargaining power
B. No, because the travel would incur unnecessary costs
C. No, because negotiating over telephone is enough to collect information on supplier's capability
D. Yes, because this is an opportunity to assess the supplier's capacity

Answer: D

Explanation:
In the scenario, the value of contract as well as the importance of purchased item justify the procurement's travel. Visiting a supplier at their HQ or operational facility may facilitate the procurement team in assessing, albeit briefly, the culture of the organisation, how busy they seem and how staff engage with each other. A visit is a good opportunity to assess supplier's capacity.
LO 2, AC 2.2

NEW QUESTION # 100
Telephone is most likely to be used for which of the following negotiations?

A. High value contract
B. Routinetransactions
C. Contract for purchasing a specialised product
D. Complex one-off purchase

Answer: B

Explanation:
Explanation
Many commercial negotiations could be considered routine or just not worth the investment for buyers, and using the phone can make more sense and can be more immediate.
LO 2, AC 2.4

NEW QUESTION # 101
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