CIPS L4M5 Exam Dumps

Get All Commercial Negotiation Exam Questions with Validated Answers

L4M5 Pack
Vendor: CIPS
Exam Code: L4M5
Exam Name: Commercial Negotiation
Exam Questions: 395
Last Updated: April 15, 2026
Related Certifications: Level 4 Diploma in Procurement and Supply
Exam Tags: Intermediate Level Procurement Analysts
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Free CIPS L4M5 Exam Actual Questions

Question No. 1

Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?

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Correct Answer: A

Investors or shareholders who have high level of influence but low interest belong to 'Keep satisfied' quadrant of Mendelow's Stakeholder Matrix.

You may read 2 versions from L4M1 and L4M5 here:

Table Description automatically generated

LO 1, AC 1.1


Question No. 2

Which of the following are stages of a win-win approach to negotiations?

Find out where the interests of both parties align

Design new options, where everyone gets more of what they need

Limit the resources to a fixed number

Insist that the agreement includes subjective regulatory standards

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Correct Answer: A

A win-win (integrative) negotiation focuses on shared interests and joint value creation. The first step is identifying where both parties' interests align, followed by designing creative options that allow both sides to gain more of what they need. Limiting resources and imposing subjective standards are characteristics of distributive or adversarial approaches and restrict value creation. CIPS clearly distinguishes integrative negotiation as collaborative, interest-based, and solution-focused, particularly suitable for long-term and strategic supplier relationships.


Question No. 3

Which one of these key approaches could be pursued for a successful negotiation of a commercial agreement?

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Correct Answer: C

Acollaborative win-win approachfocuses on mutual benefit and long-term value creation. This strategy is especially effective in strategic partnerships where trust, information sharing, and problem-solving are emphasized over competition.

''The collaborative win-win approach aims to create outcomes where both parties gain. This strengthens the relationship and leads to sustainable agreements built on trust and transparency.''

(L4M5 Commercial Negotiation, 2nd edition, Section 1.1 - Win-Win Negotiation Strategy)


Question No. 4

Which of the following is important during the proposing stage of a negotiation?

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Correct Answer: D

Question No. 5

Which of the following are most likely to harm trust between buyer and supplier in a commercial relationship? Select TWO that apply.

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Correct Answer: A, D

Trust-destroying behaviours:

- Rumours of partnership or relationship breaking down

- Emotion-based assessment of performance

- Avoiding accountability, passing the blame to others

- General mood -- resentment, distrust, frustration, etc

LO 1, AC 1.4


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