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The following L4M5 questions are part of our CIPS L4M5 real exam questions full version. There are 223 in our L4M5 full version. All of our L4M5 real exam questions can guarantee you success in the first attempt. If you fail L4M5 exam with our CIPS L4M5 real exam questions, you will get full payment fee refund. Want to practice and study full verion of L4M5 real exam questions? Go now!

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CIPS L4M5 Exam Actual Questions

The questions for L4M5 were last updated on Feb 21,2025 .

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Question#1

Which of the following are recognised techniques in contract negotiation? Select THREE that apply.

A. Framing and reframing
B. Ratification
C. Pacing and leading
D. Validation
E. Role ethics
F. Anchoring

Explanation:
The question asks about negotiation techniques which are not present in the book.
In this question, there are only 3 recognised techniques:
- Framing and reframing: A frame is an assumption, or set of assumptions, that guides our attention and behavior. Reframing is the ability to identify and significantly change assumptions or perspectives. Framing has a significant impact on the effectiveness of negotiation outcomes and negotiator working relationships. You can read more on framing and reframing here.
- Anchoring: Anchoring bias is well-known cognitive bias in negotiation and in other
contexts. The anchoring bias describes the common tendency to give too much weight to the first number put forth in a discussion and then inadequately adjust from that starting point, or the “anchor.” We even fixate on anchors when we know they are irrelevant to the discussion at hand. You can read more on anchoring here.
- Pacing and leading: Pacing and leading is a two-step lever of persuasion. First C You “match your pace” to the person you want to influence in as many ways as possible. You can do this by mimicking the way the person talks, stands, their appearance, etc. You can also mimic less tangible aspects like the way they act, or their emotional state. Second C Once you’ve set your pace with someone, lead them to whatever decision or behavior you
want them to take! You can read more on pacing and leading here.
Reference: CIPS study guide page 163-165
LO 3, AC 3.2

Question#2

A negotiation is coming to the end. Both parties haven't had any official commitments. Right before leaving the room, the buyer strongly disagrees with supplier's set up prices and requests a discount. The supplier doesn't reply but nods and smiles.
Can the buyer consider these actions as an acceptance?

A. Yes, because smiling shows supplier's readiness in signing the deal off
B. No, because nodding and smiling are etiquette of polite rejection
C. No, because nodding and smiling are not clear signs of neither acceptance nor rejection
D. Yes, because negotiator should rely on non-verbal communications only

Explanation:
Good negotiators are attuned to all stimuli and not just the verbal and written information exchanged. Tone of voice, body language, facial expressions and other clues from TOP are noticed, and with experience and knowledge, interpreted correctly. This interpretation may also involve knowledge of culture norms and values. A smile, a 'yes' and the type of hospitality received, (in the business context), can mean very different things in different international business cultures.
Trained negotiators will consider non-verbal communication (such as nodding and smiling)
and body language as one source of signal from TOP, but will rarely rely wholly on this as a guide to what TOP is thinking or feeling. Furthermore, international and regional cultural considerations must be included here to avoid errors in interpretation. Emotional intelligence also has an important role in forming a more holistic perspective of what TOP may be thinking or feeling.

Question#3

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?

A. Engage and keep them satisfied
B. Engage and consult with them regularly
C. Keep these people inform through general communication media
D. Manage them closely

Explanation:
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:






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LO 1, AC 1.1

Question#4

Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

A. Conducting transparent procurement process
B. Over-inflated contingency funds
C. Allowing supplier to involve in early product development
D. Commercial espionage
E. Tendency to blame other party

Explanation:
Trust-building behaviours are as following:
Joint-effort issue resolution
Open sharing of information
Open and honest discussion on root cause of failures
Joint planning focusing on value for money and risk sharing
Commercial transparency and co-proposition of cost reduction and service improvement programmes
Joint recognition and celebration of successes

Question#5

In a commercial negotiation, a procurement professional believe that the larger the order quantity from buyer, the lower the supplier's average costs. Is this assumption true?

A. No, because supplier's average costs will rise as the buyer's demand increases
B. No, because the supplier may need to invest in new facility to meet buyer's demand
C. Yes, because larger order quantity will bring a considerable profit to supplier
D. Yes, because larger order quantity will always enable the supplier to reach its economy of scale

Explanation:
In some markets, suppliers experience peaks and troughs in demand and so buyers can increase their leverage through developing an understanding of how busy their vendor are at particular time during the year or business cycle and targetting atquieter period. Similarly, if a buyer can develop an understanding of supplier capacity and to what extent have they covered their fixed cost, they may be able to target suppliers when their average costs are likely to be lowest. Vendor's average costs will be higher at low and high capacity utilisation.



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Exam Code: L4M5Q & A: 223 Q&AsUpdated:  Feb 21,2025

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