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[General] Upgrade Your Professional Career by Obtaining the CIPS L4M5 Certification

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【General】 Upgrade Your Professional Career by Obtaining the CIPS L4M5 Certification

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CIPS L4M5 Certification program covers a wide range of topics related to commercial negotiation, including communication skills, negotiation tactics, contract management, and dispute resolution. The program is designed to provide professionals with a comprehensive understanding of the negotiation process and the tools and techniques needed to achieve successful outcomes. The CIPS L4M5 certification program is highly regarded in the industry and is recognized by employers around the world as a mark of excellence in commercial negotiation.
CIPS L4M5: Commercial Negotiation exam has a significant importance in the procurement field, especially in today's hyper-competitive business environment. Solid negotiation skills are essential for both professional success and the success of businesses as a whole. It provides a comprehensive understanding of the core principles of effective negotiation and equips candidates with the tools and techniques necessary for winning negotiations with suppliers.
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CIPS L4M5 (Commercial Negotiation) Exam is a professional qualification designed for individuals who are interested in developing their skills and knowledge in commercial negotiation. L4M5 exam is offered by the Chartered Institute of Procurement and Supply (CIPS), which is a leading global professional body for procurement and supply chain management. The CIPS L4M5 Exam is one of the most comprehensive and widely recognized qualifications in the field of commercial negotiation, and it covers a broad range of topics, including negotiation planning, techniques, strategies, and tactics.
CIPS Commercial Negotiation Sample Questions (Q158-Q163):NEW QUESTION # 158
"Finding the middle ground between buyer and supplier is a satisfactory way to complete contract negotiations." Is this statement correct?
  • A. Yes, because the buyer will always move further than the supplier
  • B. No, because it will damage your credibility in negotiations
  • C. Yes, because both parties get as close to their result as possible
  • D. No, because the other party may take advantage if you move position
Answer: B
Explanation:
While compromise seems fair, it often erodes credibility and weakens long-term negotiation outcomes.
Skilled negotiators avoid "splitting the difference" automatically, since it signals weak preparation and can encourage exploitation in future talks. Instead, agreements should be built on objective value, data, and tradeables. Compromise has a place, but reliance on it damages strategic positioning. CIPS stresses integrative or principled negotiation over simplistic middle-ground settlements.
Reference: CIPS L4M5 (2nd ed.), LO 1.1 - Dangers of compromise and importance of principled negotiation.

NEW QUESTION # 159
Why is the use of power important for integrative commercial negotiations?
* Moving negotiations forward when they get stuck on certain issues
* Maximising the share of value gains for the negotiator's side
* Coercion of the other party into a submissive agreement
* Breaking through negotiation barriers related to attitude
  • A. 2 and 4 only
  • B. 1 and 4 only
  • C. 1 and 2 only
  • D. 2 and 3 only
Answer: B
Explanation:
In integrative (win-win) negotiations, power is not used to dominate or coerce but to enable progress and overcome barriers. Power can help move negotiations forward when discussions stall on specific issues and can help address behavioural or attitudinal barriers that prevent collaboration. Maximising one side's share of gains and coercion are characteristics of distributive or adversarial negotiations, not integrative ones. CIPS clearly differentiates the constructive use of power in integrative negotiations as a means to facilitate dialogue, encourage engagement, and unlock joint value, rather than to force submission or extract disproportionate gains.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 3.1: Constructive use of power in integrative commercial negotiations.

NEW QUESTION # 160
Which of the following are most likely to be sources of conflict that can emerge from the content of commercial negotiations? Select TWO that apply.
  • A. Payment terms
  • B. Framework arrangement
  • C. Requisition
  • D. Cultural differences
  • E. Contract governing law
Answer: A,E
Explanation:
There are multiple sources of divergent positions that can arise in situations where money is exchange for goods and services. There are 2 different types of sources. Those that arise from the content or subject matter of the negotiation (what is being negotiated) and those that arise from the process of negotiation (how it is being negotiated).
Sources of divergent position - the content of negotiation:
Table Description automatically generated

Cultural differences are the source of conflict in the process of negotiation.
Requisition is an internal document raised by user or store to communicate to procurement the need to buy the product or service specified. This is merely a internal document.
Framework arrangement is a rather loose set-up, without any legal standing. It usually occurs when an organisation has decided for itself to limit the number of suppliers it is willing to work with and, through a purely internal process, sets up an approved list of such suppliers.
LO 1, AC 1.1

NEW QUESTION # 161
Which of the following are elements of price negotiations? Select the TWO that apply.
  • A. Sales tax payable
  • B. Administration costs
  • C. Terms of payment
  • D. Cash flow management
  • E. Pricing arrangement
Answer: C,E
Explanation:
Price negotiations extend beyond headline unit price and include elements that influence total commercial value. Pricing arrangements (such as fixed, variable, indexed, or cost-plus pricing) directly affect financial risk and cost certainty. Terms of payment influence cash flow, working capital, and overall cost of ownership, making them core price-related negotiation variables. Sales tax is typically regulated and not negotiable, while cash flow management and administration costs are internal organisational concerns rather than negotiated price elements. CIPS emphasises a holistic approach to price negotiations that considers structure and payment terms, not just price level.
Reference: CIPS L4M5 Commercial Negotiation (CORE), 2nd edition - LO 2.2: Elements and structure of price negotiations.

NEW QUESTION # 162
End users are the only stakeholders that are involved in the preparation of a negotiation. Is this statement true?
  • A. Yes, because only end-users understand their demand
  • B. Yes, because end-users have greater expert power
  • C. No, because end-users are external stakeholders
  • D. No, because budget holders also play an important role
Answer: D
Explanation:
Commercial negotiation objectives should be driven by the business needs of the organisation. Organisations are made up of different stakeholder groups, some of whom may have different, even conflicting objectives.
From a negotiation perspective, stakeholders can be defined as persons or groups that have interest (or stake) in the outcome of the negotiation you are leading or participating in.
CIPS distinguishes between 3 sets of stakeholders:
- Internal stakeholders
- Connected stakeholders
- External stakeholders
End-users are examples of internal stakeholders. They are the people who will benefit from the purchase of a product or service. However, their interest may conflict with other groups, i.e. the budget controllers whose objective is minimising the expense. In negotiation perspective, procurement should involve different groups of stakeholder.
LO 1, AC 1.1

NEW QUESTION # 163
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