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 #251
Which of the following would be considered appropriate influencing techniques in contract negotiation? Select TWO that apply.
- A . Ratification
- B . Rule ethics
- C . Framing and re-framing
- D . Validation
- E . Anchoring
Correct Answer: C, E
C, E
Explanation:
Framing and re-framing (C) and Anchoring (E) are powerful influencing techniques:
Framing and re-framing (C): This technique shapes how information is presented to make specific aspects more compelling or relevant.
Anchoring (E): Anchoring sets an initial reference point, which influences how subsequent information is perceived.
These techniques help negotiators control the flow and focus of discussions, aligning with CIPS recommendations for strategic influence in negotiations.
C, E
Explanation:
Framing and re-framing (C) and Anchoring (E) are powerful influencing techniques:
Framing and re-framing (C): This technique shapes how information is presented to make specific aspects more compelling or relevant.
Anchoring (E): Anchoring sets an initial reference point, which influences how subsequent information is perceived.
These techniques help negotiators control the flow and focus of discussions, aligning with CIPS recommendations for strategic influence in negotiations.
Question #252
Are tactical ploys only used in distributive approach?
- A . No, because tactical ploys strengthen the other party’s position
- B . No, because tactical ploys will be more effective with integrative approach
- C . Yes, because tactical ploys will help to gain insights into the other party’s interests
- D . Yes, because they will be irritants to long-term relationship
Correct Answer: D
D
Explanation:
There are many tactics and ploys that can be used to persuade others, particularly those not trained in negotiation. But in general these tactics should be used with care, as they can backfire; and in situations where a long-term relationship is desired, they can be, if detected, become an irritant to TOP.
Tactics are particularly effective if and when you are dealing with untrained negotiators, in consumer’s buying situation and in once-off encounter.
D
Explanation:
There are many tactics and ploys that can be used to persuade others, particularly those not trained in negotiation. But in general these tactics should be used with care, as they can backfire; and in situations where a long-term relationship is desired, they can be, if detected, become an irritant to TOP.
Tactics are particularly effective if and when you are dealing with untrained negotiators, in consumer’s buying situation and in once-off encounter.
Question #253
Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.
- A . Cost overruns
- B . Decreasing percentage of missed delivery overtime
- C . Transparent decision making process
- D . Less frequent communication on business requests
Duplication of effort
Correct Answer: B, C
B, C
Explanation:
Signs of trust in business relationships
• Mutually agreed and managed objectives
• Sharing information
• Managing conflict through joint problem solving
• On time delivery of products and services
• High-performance teams that feel empowered to get the job done
• Supplier welcomes opportunity to innovate
• Both parties share ideas and insight
• Clear criteria for decision making
LO 1, AC 1.4
B, C
Explanation:
Signs of trust in business relationships
• Mutually agreed and managed objectives
• Sharing information
• Managing conflict through joint problem solving
• On time delivery of products and services
• High-performance teams that feel empowered to get the job done
• Supplier welcomes opportunity to innovate
• Both parties share ideas and insight
• Clear criteria for decision making
LO 1, AC 1.4
Question #253
Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.
- A . Cost overruns
- B . Decreasing percentage of missed delivery overtime
- C . Transparent decision making process
- D . Less frequent communication on business requests
Duplication of effort
Correct Answer: B, C
B, C
Explanation:
Signs of trust in business relationships
• Mutually agreed and managed objectives
• Sharing information
• Managing conflict through joint problem solving
• On time delivery of products and services
• High-performance teams that feel empowered to get the job done
• Supplier welcomes opportunity to innovate
• Both parties share ideas and insight
• Clear criteria for decision making
LO 1, AC 1.4
B, C
Explanation:
Signs of trust in business relationships
• Mutually agreed and managed objectives
• Sharing information
• Managing conflict through joint problem solving
• On time delivery of products and services
• High-performance teams that feel empowered to get the job done
• Supplier welcomes opportunity to innovate
• Both parties share ideas and insight
• Clear criteria for decision making
LO 1, AC 1.4
Question #253
Which of the following are signs indicating that the trust between buyer and supplier has improved? Select TWO that apply.
- A . Cost overruns
- B . Decreasing percentage of missed delivery overtime
- C . Transparent decision making process
- D . Less frequent communication on business requests
Duplication of effort
Correct Answer: B, C
B, C
Explanation:
Signs of trust in business relationships
• Mutually agreed and managed objectives
• Sharing information
• Managing conflict through joint problem solving
• On time delivery of products and services
• High-performance teams that feel empowered to get the job done
• Supplier welcomes opportunity to innovate
• Both parties share ideas and insight
• Clear criteria for decision making
LO 1, AC 1.4
B, C
Explanation:
Signs of trust in business relationships
• Mutually agreed and managed objectives
• Sharing information
• Managing conflict through joint problem solving
• On time delivery of products and services
• High-performance teams that feel empowered to get the job done
• Supplier welcomes opportunity to innovate
• Both parties share ideas and insight
• Clear criteria for decision making
LO 1, AC 1.4
Question #256
Undertake reflective practice after each negotiation
- A . 1 and 3
- B . 2 and 3
- C . 1 and 4
- D . 3 and 4
Correct Answer: C
C
Explanation:
To improve negotiation outcomes, seeking feedback from the supplier (1) and undertaking reflective practice (4) are recommended actions. Feedback from the supplier can provide insights into areas for improvement from the counterparty’s perspective, while reflective practice allows the negotiator to evaluate their own approach, outcomes, and areas for growth. This approach aligns with CIPS’s emphasis on continuous improvement in negotiation skills.
C
Explanation:
To improve negotiation outcomes, seeking feedback from the supplier (1) and undertaking reflective practice (4) are recommended actions. Feedback from the supplier can provide insights into areas for improvement from the counterparty’s perspective, while reflective practice allows the negotiator to evaluate their own approach, outcomes, and areas for growth. This approach aligns with CIPS’s emphasis on continuous improvement in negotiation skills.
Question #257
Which of the following are types of questions that are useful in opening and testing phases of a negotiation? Select the TWO that apply.
- A . Closed
- B . Narrow
- C . Probing
- D . Leading
- E . Open
Correct Answer: C, E
C, E
Explanation:
In the opening phase, parties should confirm understanding and get the issues on the table.
The testing phase is an information gathering stage where the hypothesis and assumption you have made in the planning stage can be tested or confirmed or disproved.
Opening questions (those that start with ‘what’, ‘how’, ‘why’) are used at the opening and testing stages to uncover needs and underlying motives, and to allow the buyer to get a feel of what is in store in the negotiation.
Probing questions are also useful to check that the supplier fully understand their offering, as well as your needs, and can also be used to communicate to the supplier that you know this category well. These questions are typically useful at the opening and testing stages.
C, E
Explanation:
In the opening phase, parties should confirm understanding and get the issues on the table.
The testing phase is an information gathering stage where the hypothesis and assumption you have made in the planning stage can be tested or confirmed or disproved.
Opening questions (those that start with ‘what’, ‘how’, ‘why’) are used at the opening and testing stages to uncover needs and underlying motives, and to allow the buyer to get a feel of what is in store in the negotiation.
Probing questions are also useful to check that the supplier fully understand their offering, as well as your needs, and can also be used to communicate to the supplier that you know this category well. These questions are typically useful at the opening and testing stages.
Question #258
How contribution is calculated in break-even analysis?
- A . Fixed costs divided by variable costs
- B . Variable costs subtracted from price
- C . Price minus fixed costs
- D . Variable costs subtracted from fixed costs
Correct Answer: B
B
Explanation:
Contribution = Price – Variable cost
Break-even point (volume) = Fixed cost/Contribution
B
Explanation:
Contribution = Price – Variable cost
Break-even point (volume) = Fixed cost/Contribution
Question #258
How contribution is calculated in break-even analysis?
- A . Fixed costs divided by variable costs
- B . Variable costs subtracted from price
- C . Price minus fixed costs
- D . Variable costs subtracted from fixed costs
Correct Answer: B
B
Explanation:
Contribution = Price – Variable cost
Break-even point (volume) = Fixed cost/Contribution
B
Explanation:
Contribution = Price – Variable cost
Break-even point (volume) = Fixed cost/Contribution
Question #260
Which of the following are most likely to be fixed costs of an airline? Select TWO that apply.
- A . Purchase of aircraft
- B . Catering services
- C . Advertising and promotion
- D . Flight crew training
- E . Fuel
Correct Answer: A, D
A, D
Explanation:
Fixed costs (FC) are costs that do not vary with volume. To an airline once aircraft are purchased, flight crews trained and departures scheduled, costs are disproportionately fixed.
Variable costs (VC) are those which vary with the amount produced. Fuel, catering services and marketing are examples of variable.
LO 2, AC 2.1
A, D
Explanation:
Fixed costs (FC) are costs that do not vary with volume. To an airline once aircraft are purchased, flight crews trained and departures scheduled, costs are disproportionately fixed.
Variable costs (VC) are those which vary with the amount produced. Fuel, catering services and marketing are examples of variable.
LO 2, AC 2.1