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 #261
Consumer tastes shift toward substitute products
- A . 3 and 4 only
- B . 4 and 2 only
- C . 1 and 3 only
- D . 1 and 2 only
Correct Answer: C
C
Explanation:
A shift in demand occurs when an influencing factor other than price changes.
Those factors are:
– The income of buyers
– The tastes and preferences of buyers
– The prices of other goods and services, especially substitutes and complements
– Expectations of buyer about the future
In this question:
– ‘Prices of complementary goods decrease’ will lead toquantity demanded for that complements rising, then demand for consumer good will increase accordingly.
– ‘Price of the consumer good decreases’ will increase the quantity demanded for that good, but it will not shift the demand curve
– ‘Customers’ expectation of higher prices in the future’: in this scenario, customers tend to buy more to store in present, which leads to demand curve shifting to the right
– ‘Consumer tastes shift toward substitute products’: Demand for substitutes will rise, so demand forthat consumer good will decrease and the demand curve shifts to the left.
LO 2, AC 2.2
C
Explanation:
A shift in demand occurs when an influencing factor other than price changes.
Those factors are:
– The income of buyers
– The tastes and preferences of buyers
– The prices of other goods and services, especially substitutes and complements
– Expectations of buyer about the future
In this question:
– ‘Prices of complementary goods decrease’ will lead toquantity demanded for that complements rising, then demand for consumer good will increase accordingly.
– ‘Price of the consumer good decreases’ will increase the quantity demanded for that good, but it will not shift the demand curve
– ‘Customers’ expectation of higher prices in the future’: in this scenario, customers tend to buy more to store in present, which leads to demand curve shifting to the right
– ‘Consumer tastes shift toward substitute products’: Demand for substitutes will rise, so demand forthat consumer good will decrease and the demand curve shifts to the left.
LO 2, AC 2.2
Question #262
Personal power is only used in distributive approach. Is this statement true?
- A . Yes, because only distributive approach to negotiation requires strong personal power
- B . No, because personal power can be very helpful in integrative approach
- C . No, because only organisational power will optimise the negotiation outcomes
- D . Yes, because one party will abuse coercive power to maximise the gain
Correct Answer: B
B
Explanation:
Power, or more precisely perceptions of power, are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective. When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven’s power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement
LO 1, AC 1.3
B
Explanation:
Power, or more precisely perceptions of power, are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective. When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven’s power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement
LO 1, AC 1.3
Question #263
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
Correct Answer: A
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
Question #263
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
Correct Answer: A
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
Question #263
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
Correct Answer: A
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
Question #263
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
Correct Answer: A
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
Question #263
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
Correct Answer: A
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
Question #263
Different types of relationships impact commercial negotiations.
At a negotiation, which one of the following sources would help to support leverage for the buyer?
- A . Legitimate power
- B . Personality power
- C . Powerful colleagues
- D . Friends power
Correct Answer: A
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
A
Explanation:
Legitimate power derives from formal authority or position, giving the buyer leverage in negotiations. This power type is more effective in establishing credibility and enforcing terms, as highlighted in CIPS’s framework for negotiation power sources, unlike informal sources like personality or friendship.
Question #269
Which of the following should be adopted to minimise the conflict between parties in commercial negotiation?
- A . The rule of law
- B . Ground zero
- C . Ground beam
- D . Ground rules
Correct Answer: D
D
Explanation:
Ground rules are the basic rules for doing something (Cambridge Dictionary). A negotiation goes more smoothly if ground rules are adopted. Then if something goes awry at a later time, you can point out the ground rule that has been violated. Procurement professional should seek to minimise conflict over process through agreeing ‘ground rules’ and approach as far as possible with the other party in advance of any negotiation meetings.
There should be two sets of ground rules: 1) ground rules for the negotiations between the two parties and 2) ground rules for the negotiating team itself. This article is about the negotiating team ground rules.
The rule of law is the condition in which all members of society, including its political leaders, accept the authority of the law.
Ground zero describes the point on the Earth’s surface closest to a nuclear detonation. In the case of an explosion above the ground, ground zero refers to the point on the ground directly below the nuclear detonation.
The Ground Beam is the beam which is provided usually at the foundation level to support building walls, joists, etc.
D
Explanation:
Ground rules are the basic rules for doing something (Cambridge Dictionary). A negotiation goes more smoothly if ground rules are adopted. Then if something goes awry at a later time, you can point out the ground rule that has been violated. Procurement professional should seek to minimise conflict over process through agreeing ‘ground rules’ and approach as far as possible with the other party in advance of any negotiation meetings.
There should be two sets of ground rules: 1) ground rules for the negotiations between the two parties and 2) ground rules for the negotiating team itself. This article is about the negotiating team ground rules.
The rule of law is the condition in which all members of society, including its political leaders, accept the authority of the law.
Ground zero describes the point on the Earth’s surface closest to a nuclear detonation. In the case of an explosion above the ground, ground zero refers to the point on the ground directly below the nuclear detonation.
The Ground Beam is the beam which is provided usually at the foundation level to support building walls, joists, etc.
Question #270
Framework contracts are used to identify the supplier
- A . 1 and 2 only
- B . 1 and 3 only
- C . 2 and 3 only
- D . 2 and 4 only
Correct Answer: B
B
Explanation:
Single-sourced relationships often involve exclusivity for a specific product (1) and a high level of trust and collaboration (3) between buyer and supplier. This type of relationship is selected for strategic procurement purposes, often involving long-term partnerships, which align with CIPS’s relationship spectrum guidelines.
B
Explanation:
Single-sourced relationships often involve exclusivity for a specific product (1) and a high level of trust and collaboration (3) between buyer and supplier. This type of relationship is selected for strategic procurement purposes, often involving long-term partnerships, which align with CIPS’s relationship spectrum guidelines.