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Visual CIPS L4M5 Cert Exam | L4M5 Valid Test Review

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CIPS L4M5 (Commercial Negotiation) Exam is an essential qualification for procurement professionals looking to enhance their skills and progress their careers. Commercial Negotiation certification provides individuals with the knowledge and expertise needed to negotiate effectively with suppliers and stakeholders, while navigating complex legal and ethical considerations. With a globally recognized CIPS qualification, individuals can demonstrate their proficiency in commercial negotiation, and gain a competitive edge in the procurement job market.

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CIPS Commercial Negotiation Sample Questions (Q24-Q29):

NEW QUESTION # 24
Neville is a senior procurement specialist in a automaker. He has good relationship with his team mates and other departments because of his amazing purchasing skills and kindness. Which of the following sources of power is Neville likely to possess?

A. Coercive
B. Legitimate
C. Reward
D. Referent

Answer: D

Explanation:
:
In 1959, French and Raven described five bases of power:
1. Legitimate - This comes from the belief that a person has the formal right to make demands, and to expect others to be compliant and obedient.
2. Reward - This results from one person's ability to compensate another for compliance.
3. Expert - This is based on a person's high levels of skill and knowledge.
4. Referent - This is the result of a person's perceived attractiveness, worthiness and right to others' respect.
5. Coercive - This comes from the belief that a person can punish others for noncompliance.
Six years later, Raven added an extra power base:
6. Informational - This results from a person's ability to control the information that others need to accomplish something.
In the scenario, Neville attracts and keeps good relationship with his colleagues not because of neither position nor reward nor coercion. He has good skills and kindness, which increase his charisma. His source of power is referent power.

NEW QUESTION # 25
Which of the following is most likely a consequence of falling interest rate?

A. Increase aggregate demand
B. Decrease consumption
C. Increase savings
D. Decrease investment

Answer: A

Explanation:
:
If interest rate are too low and credit is too, cheap rates can fund a spending boom with consumers and businesses buying (investment) more than they can afford to pay back.

NEW QUESTION # 26
Which of the following are most likely to be abilities of a person with high emotional intelligence? Select TWO that apply.

A. Controlling one's own emotions
B. Reasoning and problem solving Abstract thinking
C. Complex idea comprehension
D. Perceiving how others feel

Answer: A,D

Explanation:
Emotional Quotient is the set of skills that enables us to make our way in a complex world - the personal, social and survival aspects of overall intelligence, the elusive common sense and sensitivity that are essential to effective daily functioning. It has to do with the ability to read the political and social environment, and landscape them; to intuitively grasp what others want and need; what strengths and weaknesses are; to remain unruffled by stress; and to be engaging. The kind of person others want to be around and follow.
EQ seeks to measure emotional intelligence and is centred on abilities such as the following:
- Identifying emotions
- Evaluating how others feel
- Controlling one's own emotions
- Perceiving how others feel
- Using emotions to facilitate social communication
- Relating to others
On the other hand, cognitive ability is defined as a general mental capability involving reasoning, problem solving, planning, abstract thinking, complex idea comprehension, and learning from experience (Gottfredson,
1997).
LO 3, AC 3.3

NEW QUESTION # 27
When considering a new supply source for a product, a procurement professional will review the suppliers' quotations before a supplier negotiation. Which of the following is a direct cost associated with the product within a potential supplier's quotation?

A. Rent for the supplier's premises
B. Insurance for production machinery
C. Metal used in the product
D. Wages for the supplier's sales department

Answer: C

Explanation:
Direct costs are those costs that can be directly attributed to the production of specific goods or services. They typically include raw materials and labor directly involved in production. Metal used in the product is a raw material that becomes part of the final product, making it a direct cost.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 2.1 - Types of Costs and Prices

NEW QUESTION # 28
Which of the following are recognised techniques in contract negotiation? Select THREE that apply.

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

Answer: A,B,F

Explanation:
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 - 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 - 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.

NEW QUESTION # 29
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