CIPS L4M5 Practice Exams
Last updated on Oct 23,2026- Exam Code: L4M5
- Exam Name: Commercial Negotiation
- Certification Provider: CIPS
- Latest update: Oct 23,2026
Question #107
Under EU public procurement directives, which of the following are procedures in which there is no commercial negotiation allowed?
- A . Innovation Partnerships
- B . Open Procedure
- C . Restricted Procedure
- D . Competitive Dialogue
- E . Competitive Procedure with Negotiation
Correct Answer: B, C
B, C
Explanation:
Under the European Union public procurement directives, all public sector bodies must abide by certain rules when they procure goods and services over a threshold value.
These rules are codified under 5 procurement procedures:
B, C
Explanation:
Under the European Union public procurement directives, all public sector bodies must abide by certain rules when they procure goods and services over a threshold value.
These rules are codified under 5 procurement procedures:
Question #107
Under EU public procurement directives, which of the following are procedures in which there is no commercial negotiation allowed?
- A . Innovation Partnerships
- B . Open Procedure
- C . Restricted Procedure
- D . Competitive Dialogue
- E . Competitive Procedure with Negotiation
Correct Answer: B, C
B, C
Explanation:
Under the European Union public procurement directives, all public sector bodies must abide by certain rules when they procure goods and services over a threshold value.
These rules are codified under 5 procurement procedures:
B, C
Explanation:
Under the European Union public procurement directives, all public sector bodies must abide by certain rules when they procure goods and services over a threshold value.
These rules are codified under 5 procurement procedures:
Question #113
Eliminating requirements in the specification that prioritises monopoly suppliers
- A . 1 and 4 only
- B . 3 and 4 only
- C . 2 and 3 only
- D . 2 and 4 only
Correct Answer: D
D
Explanation:
In most commercial negotiations with monopolistic organisations, one can expect that in general they will have far greater bargaining power – you will need them more than they need you. There BATNA is stronger in the short run, but over time their power can be challenged effectively.
Ways of dealing with monopoly suppliers include the following:
Making yourself an attractive buyer
Seeking out alternatives / substitutes in a private or public manner
Designing out the requirement that forces you to go to the monopoly suppliers, or seek to make the product, or threaten to make it yourself if feasible
Lobbying government or campaigning, as part of an industry or trade body, for a reduction in barriers to entry that support the monopoly
D
Explanation:
In most commercial negotiations with monopolistic organisations, one can expect that in general they will have far greater bargaining power – you will need them more than they need you. There BATNA is stronger in the short run, but over time their power can be challenged effectively.
Ways of dealing with monopoly suppliers include the following:
Making yourself an attractive buyer
Seeking out alternatives / substitutes in a private or public manner
Designing out the requirement that forces you to go to the monopoly suppliers, or seek to make the product, or threaten to make it yourself if feasible
Lobbying government or campaigning, as part of an industry or trade body, for a reduction in barriers to entry that support the monopoly
Question #113
Eliminating requirements in the specification that prioritises monopoly suppliers
- A . 1 and 4 only
- B . 3 and 4 only
- C . 2 and 3 only
- D . 2 and 4 only
Correct Answer: D
D
Explanation:
In most commercial negotiations with monopolistic organisations, one can expect that in general they will have far greater bargaining power – you will need them more than they need you. There BATNA is stronger in the short run, but over time their power can be challenged effectively.
Ways of dealing with monopoly suppliers include the following:
Making yourself an attractive buyer
Seeking out alternatives / substitutes in a private or public manner
Designing out the requirement that forces you to go to the monopoly suppliers, or seek to make the product, or threaten to make it yourself if feasible
Lobbying government or campaigning, as part of an industry or trade body, for a reduction in barriers to entry that support the monopoly
D
Explanation:
In most commercial negotiations with monopolistic organisations, one can expect that in general they will have far greater bargaining power – you will need them more than they need you. There BATNA is stronger in the short run, but over time their power can be challenged effectively.
Ways of dealing with monopoly suppliers include the following:
Making yourself an attractive buyer
Seeking out alternatives / substitutes in a private or public manner
Designing out the requirement that forces you to go to the monopoly suppliers, or seek to make the product, or threaten to make it yourself if feasible
Lobbying government or campaigning, as part of an industry or trade body, for a reduction in barriers to entry that support the monopoly
Question #115
Collaborative approach in negotiation not only can fully satisfies the concerns of both, but also ensure that neither party will seek to be opportunistic in later time during the life of the contract.
Is this statement true?
- A . Yes, because all parties must have exactly the same goals in integrative negotiation
- B . No, because any party may leverage its own advantage during the contract
- C . Yes, because both parties have well understood each other’s goals when they engage in collaborative negotiation
- D . No, because the parties will always find a compromise solution in integrative approach
Correct Answer: B
B
Explanation:
Integrative, interest-based negotiation can facilitate constructive, positive relationship and establish contracts between parties on a foundation of goodwill. It is important to note it can only facilitate these positive outcomes, it does not guarantee that the other party will not seek to be opportunistic at a later time during the life of the contract. Previous knowledge of the behaviours of the other party regarding honouring contractual and other commitments will be useful here in predicting long-term outcomes, not ensuring that they will not leverage their advantages.
B
Explanation:
Integrative, interest-based negotiation can facilitate constructive, positive relationship and establish contracts between parties on a foundation of goodwill. It is important to note it can only facilitate these positive outcomes, it does not guarantee that the other party will not seek to be opportunistic at a later time during the life of the contract. Previous knowledge of the behaviours of the other party regarding honouring contractual and other commitments will be useful here in predicting long-term outcomes, not ensuring that they will not leverage their advantages.
Question #116
For a commercial negotiation to be effective, the organisation has to identify resources required for negotiation.
Which one of the following could help?
- A . Involve a larger team than the other party
- B . Involve an appropriate cross-functional team
- C . Involve a team of only senior managers
- D . Involve a location-based team only
Correct Answer: B
B
Explanation:
Involving an appropriate cross-functional team is beneficial for effective commercial negotiation because it brings together diverse perspectives and expertise relevant to the negotiation context. According to CIPS, a cross-functional team ensures that all aspects, such as technical, financial, and operational inputs, are considered, leading to more balanced and informed decision-making. This approach also helps in addressing complex negotiation elements effectively.
B
Explanation:
Involving an appropriate cross-functional team is beneficial for effective commercial negotiation because it brings together diverse perspectives and expertise relevant to the negotiation context. According to CIPS, a cross-functional team ensures that all aspects, such as technical, financial, and operational inputs, are considered, leading to more balanced and informed decision-making. This approach also helps in addressing complex negotiation elements effectively.
Question #117
Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?
- A . Web conferencing
- B . Telephone
- C . Teleconferencing
- D . In-person meeting
Correct Answer: A
A
Explanation:
Using webcams in a web conference means you are able to communicate both verbally and non verbally.
Over the phone, you cannot see TOP, the only cue/signal you have regarding their mood, interest and attitude is person’s voice, intonation and any delay.
A teleconference is a telephone meeting among two or more participants involving technology more sophisticated than a simple two-way phone connection. In-person meeting requires you team and TOP to be in the same place at the same time.
LO 2, AC 2.4
A
Explanation:
Using webcams in a web conference means you are able to communicate both verbally and non verbally.
Over the phone, you cannot see TOP, the only cue/signal you have regarding their mood, interest and attitude is person’s voice, intonation and any delay.
A teleconference is a telephone meeting among two or more participants involving technology more sophisticated than a simple two-way phone connection. In-person meeting requires you team and TOP to be in the same place at the same time.
LO 2, AC 2.4
Question #117
Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?
- A . Web conferencing
- B . Telephone
- C . Teleconferencing
- D . In-person meeting
Correct Answer: A
A
Explanation:
Using webcams in a web conference means you are able to communicate both verbally and non verbally.
Over the phone, you cannot see TOP, the only cue/signal you have regarding their mood, interest and attitude is person’s voice, intonation and any delay.
A teleconference is a telephone meeting among two or more participants involving technology more sophisticated than a simple two-way phone connection. In-person meeting requires you team and TOP to be in the same place at the same time.
LO 2, AC 2.4
A
Explanation:
Using webcams in a web conference means you are able to communicate both verbally and non verbally.
Over the phone, you cannot see TOP, the only cue/signal you have regarding their mood, interest and attitude is person’s voice, intonation and any delay.
A teleconference is a telephone meeting among two or more participants involving technology more sophisticated than a simple two-way phone connection. In-person meeting requires you team and TOP to be in the same place at the same time.
LO 2, AC 2.4
Question #119
The party being influenced may not be aware of the process happening
- A . 1 and 2 only
- B . 3 and 4 only
- C . 1 and 3 only
- D . 2 and 4 only
Correct Answer: C
C
Explanation:
A push approach typically involves exerting authority or power (1) with the party being influenced generally aware of the influence process (3). This method involves overtly directing or persuading the other party, often through explicit information or directives, as per CIPS’s understanding of push influence techniques.
C
Explanation:
A push approach typically involves exerting authority or power (1) with the party being influenced generally aware of the influence process (3). This method involves overtly directing or persuading the other party, often through explicit information or directives, as per CIPS’s understanding of push influence techniques.
Question #120
What letter R in the acronym SMART stands for?
- A . Recommended
- B . Random
- C . Relevant
- D . Risk-free
Correct Answer: C
C
Explanation:
SMART is an acronym that you can use to guide your goal setting. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound
A student met this question in the L4M5 exam. SMART is mentioned primarily in L4M3 Commercial Contracting.
LO: Unknown, AC: Unknown
C
Explanation:
SMART is an acronym that you can use to guide your goal setting. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound
A student met this question in the L4M5 exam. SMART is mentioned primarily in L4M3 Commercial Contracting.
LO: Unknown, AC: Unknown