L4M5 Dumps Updated Feb 22, 2026 Practice Test and 373 unique questions [Q41-Q57]

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L4M5 Dumps Updated Feb 22, 2026 Practice Test and 373 unique questions

2026 Latest 100% Exam Passing Ratio – L4M5 Dumps PDF

To prepare for the CIPS L4M5 exam, candidates are recommended to have completed the CIPS L4M4 (Negotiating and Contracting in Procurement and Supply) module, which provides a solid foundation in negotiation theory and practice. Additionally, candidates should have practical experience in negotiating commercial contracts and be familiar with the legal and regulatory requirements that govern commercial transactions.

CIPS L4M5 (Commercial Negotiation) Exam is an essential certification for professionals seeking to advance their careers in the field of procurement and supply chain management. L4M5 exam is designed to test a candidate’s understanding of the principles of negotiation and their ability to apply these principles in commercial contexts. The CIPS L4M5 Exam is known for its rigorous and comprehensive nature, making it highly respected within the industry.

NO.41 Active listening in negotiation includes which of the following activities?
1. Hearing
2. Interpreting
3. Rapport
4. Influence

3 and 4 only

1 and 3 only

1 and 2 only

2 and 3 only

Listening is a hugely important skill in the world of work. It’s a key part of effective communication […].
Regarding active listening, there is a model called ‘The SIER Hierarchy of Active Listening’. It details four key stages required for effective listening. As with all models associated with active listening, its purpose is to help the listener be a better, more effective listener who really hears what is being said, connects with the individual with whom they are communicating and builds effective relationships.
The model is a hierarchical model meaning that each stage builds on the stage before it. While the model is sometimes used for training in the sales arena, it is helpful in all walks of life. The stages of the model are:
Sensing (including hearing and watching body language), Interpreting, Evaluating and Responding.

NO.42 A buyer is approaching a negotiation where the company is in a low-power negotiating position in relation to the supplier. How can the buyer improve leverage and power with the supplier?

1 and 2 (Consolidate expenditure and understand supplier costs)

2 and 3 (Understand supplier costs and take a distributive approach)

3 and 4 (Take a distributive approach and limit communication)

1 and 4 (Consolidate expenditure and limit communication)

Reference: CIPS L4M5 Study Guide, Section 1.3 – Sources of Power in Negotiation

NO.43 A buyer continually states during negotiation that budget constraints limit their concessions. What tactic is being used?

Add-on

Good cop/Bad cop

Broken record

One more thing

The broken record tactic involves repeating the same point to reinforce a position, making it difficult for the other party to ignore. Here, the buyer keeps citing budget constraints to avoid moving away from their position, hoping repetition will wear down the supplier’s resistance. This tactic is common in distributive bargaining and aims to anchor discussions around a fixed limitation. While effective, overuse risks damaging relationships, so skilled negotiators balance it with genuine reasoning and integrative approaches when appropriate.
Reference: CIPS L4M5 (2nd ed.), LO 3.2 – Negotiation tactics and persuasion methods (broken record, good cop/bad cop, add-on).

NO.44 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?

Engage and keep them satisfied

Engage and consult with them regularly

Keep these people inform through general communication media

Manage them closely

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

NO.45 Are tactical ploys only used in distributive approach?

No, because tactical ploys strengthen the other party’s position

No, because tactical ploys will be more effective with integrative approach

Yes, because tactical ploys will help to gain insights into the other party’s interests

Yes, because they will be irritants to long-term relationship

:
There are many tactics and ploys that can be used to persuade others, particularly those not trained in negotiation. But in general these tactics should be used with care, as they can backfire; and in situations where a long-term relationship is desired, they can be, if detected, become an irritant to TOP.
Tactics are particularly effective if and when you are dealing with untrained negotiators, in consumer’s buying situation and in once-off encounter.

NO.46 Which of the following may help the procurement professional increase expert power in commercial negotiation? Select TWO that apply.

Personality

Official positions

Insights

Ability to compensation

Expertise knowledge

Expert power is based on a person’s high levels of skill and knowledge, formal training, qualifications and experience in aparticular procurement category would give someone expert status and mean that in negotiation their voice is listened to as a more objective, informed knowledge leader. Expert power is based on facts, knowledge, research, insight and study.
Legitimate power comes from rules, formal authority, organisation rank, staff rate or official position held.
Reward power comes from one person’s ability to compensate or reward another for compliance.
Referent power stems from their personality, way of engaging with others and habit of acting in a way that is in line with a strong set of values and principles.

NO.47 Commercial negotiation ends at the award of a contract. Is this statement true?

Yes, because there are no rooms for negotiation after the contract is awarded

Yes, because the supplier will comply with legally binding obligations

No, because improvements can be achieved through post-award negotiation

No, because real commercial negotiation begins after the contract is awarded

Negotiation doesn’t end after the contract is awarded. The needs for negotiation can arise in any post-award stages. For example, at supplier development and relationship management stage, improvement in supplier capability, capacity, and product/service range can be negotiated. Negotiations with long-term strategic critical suppliers should be carried out in a partnering style, with a win-win starting point assumed.
In some sectors such as transport, utilities and infrastructure, tenderers may ‘bid low’ or even make a loss to win major contracts with a view to negotiating lucrative changes, variations and ‘add-ons’ over the life of the contract when the supplier is bedded in and the buyer is in the weaker position to push back or challenge.
Even in less complex contract, it is very likely that there will be a need to negotiate with that supplier again after the awarding of the contract.
LO 1, AC 1.1

NO.48 Which of the following is important during the proposing stage of a negotiation?

Not making concessions to the other party

Narrowing the range of options

Attempting to close down any discussions

Persuading the other party to accept your proposal

NO.49 The stages of commercial negotiation involve which of the following characteristics?

Preparation, proposal, bargain, leave

Open, testing, bargaining, closing, revisiting

Preparing, opening, bargaining, agreement, closure

Opening, debating, promising, testing, disagreeing, closing

The typical stages of commercial negotiation are Preparing, opening, bargaining, agreement, and closure. This sequence facilitates a structured approach where negotiators prepare strategies, initiate discussions, engage in bargaining, reach agreements, and formally close the negotiation. This structure is emphasized in CIPS materials as essential for achieving a balanced negotiation process.

NO.50 The National Schools Purchasing Forum (NSPF) is a procurement organisation that purchases goods and services on behalf of schools on a national scale. NSPF is close to concluding negotiations in a meeting with Hygienics For All (HFA) for the supply of consumables to school washrooms. Both parties have reached an agreeable position and NSPF feels it is important that they conclude the negotiation at this point. What type of questions should NSPF ask HFA to achieve this?

Probing questions

Open questions

Hypothetical questions

Closed questions

NO.51 Which of the following are characteristics of the pull approach?
* Aimed at securing compliance, often against resistance
* Influencers are fully aware of the process, which is overt
* Persuasion or interpersonal influence
* Can secure commitment if influencers accept the viewpoint as fitting their goals

1 and 3 only

3 and 4 only

1 and 2 only

2 and 3 only

The pull approach relies on persuasion, interpersonal influence, and aligning proposals with others’ goals to secure commitment. It is not about forcing compliance (that is push). By engaging influencers and presenting a vision they can adopt, pull fosters buy-in and voluntary agreement. This method is particularly effective in collaborative negotiations where relationships and long-term trust are important.
Reference: CIPS L4M5 (2nd ed.), LO 3.2 – Influence approaches: push vs pull.

NO.52 Stalemate is morelikely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true?

No, because the party who offers more variables will have lower bargaining power

Yes, because the negotiation will last endlessly if there aretoo many variables

No, because more variables will facilitate more possible negotiated outcomes

Yes, because more variables will cause more conflicts of interest

Explanation
Negotiation variables such as price or contract length, etc arethat can be traded with TOP in a negotiation. The more variables you can identify, the better. The more variables you can identify and articulate, the lower the chances of the negotiation reaching deadlock as more possibilities are facilitated regarding more creative solutions.
Below are examples of negotiation tradeables in buying professional services:
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LO 2, AC 2.3

NO.53 To buying organisation, savings can be achieved from different saving levers or tactics. Which of the following are means that deliver savings through optimising specifications?

Value engineering

Part substitution

Budgetlinkages

Compare total cost of ownership

Volume pooling

If driving greater value and efficiency from your supply base is your end, you should remember that there are many ways to do this without seeking to negotiate lowerprices. Below are 7 types of saving levers:
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NO.54 A negotiation meeting between a buyer and supplier has taken several hours. Both parties believe the negotiation is starting to reach a close. Before the supplier makes their closing statements, they are most likely to be doing which of the following?

Gathering information and data

Watching for verbal and visual buying signals

Establishing connections and building rapport

Raising last-minute objections

As negotiations near closure, skilled negotiators carefully observe for buying signals-verbal cues (“That sounds reasonable…”) and non-verbal cues (nodding, smiling, leaning forward). These indicate readiness to agree and confirm whether it is the right time to close. At this stage, both sides usually stop gathering data or building rapport, as the focus is on confirming alignment and avoiding last-minute derailments. Closing too early may risk missing concessions, but delaying risks cooling momentum. Recognising buying signals ensures closure occurs at the optimal point, aligning with preparation and tactical awareness.
Reference: CIPS L4M5 (2nd ed.), LO 2.2 – Negotiation stages: opening, testing, bargaining, closing; cues to close.

NO.55 Which of the following tactics would be appropriate in an integrative negotiation?

Lowball/Highball

Take it or leave it

Expanding the pie

Mother Hubbard

“Expanding the pie” is a strategy used in integrative negotiations where both parties collaborate to increase the total value available before dividing it. This leads to mutual gains and supports long-term, strategic relationships.
Reference: L4M5 Commercial Negotiation 2nd edition (CORE), Section 3.5 – Integrative and Distributive Bargaining Tactics

NO.56 A negotiation process ends once the negotiating meeting has finished. Is this statement true?

Yes, provided that the meeting results in a win-win for both parties

Yes, because both parties have all of the emotional intelligence they need to proceed

No, best practice would include a period of reflection after the meeting as part of the process

No, the negotiation of terms should always continue after the meeting and until signed by the supplier only

NO.57 In airline industry, suppliers prefer to adopt dynamic pricing in order to constantly monitor and change their fares inresponse to market conditions. Dynamics pricing is based on which costing method?

Activity-based costing

Cost plus costing

Absorption costing

Marginal costing

Dynamic pricing is the practice of dynamically calculating the price of a product or service in order to incorporate real-time market conditions, input costs, and/or competitive perspectives. Dynamic pricing which is based on marginal costing, is used by airlines and many other organisations.
Marginal cost is the cost of producing an additional unit of output. Marginal Costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution.

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