Free CIPS L4M5 Practice Exam with Questions & Answers | Set: 4

Partnership relationshipsare strategic and long-term. They emphasizetrust, collaboration, and information sharing. Unlike transactional relationships, they go beyond price and delivery to focus on joint value creation.

“Collaborative partnerships involve open information sharing and mutual support. These relationships are built on joint objectives, trust, and commitment to long-term success.”

(L4M5 Commercial Negotiation, 2nd edition, Section 1.2 - Types of Supplier Relationships)

An adversarial style is appropriate when issues are non-negotiable, such as health and safety commitments (D). In these scenarios, compliance is required without compromise, and a firm stance may be necessary. This aligns with CIPS guidance, where adversarial tactics are used in non-negotiable contexts to enforce strict standards.

Market pricing sets prices according to consumer demand and willingness to pay, ensuring competitiveness. Skimming sets high prices at launch to maximise early profit, penetration uses low prices to enter markets, and premium pricing positions products as luxury with high margins. Market pricing balances supplier costs with customer value perception, making it a common approach in competitive industries.

A BATNA provides the buyer with the confidence to walk away if terms are not favorable, ensuring they don’t settle for a suboptimal agreement. Knowing the best alternative enables buyers to negotiate from a position of strength, as per CIPS’s guidance on negotiation strategies.

SMART is an acronym that you can use to guide your goal setting. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant, and Time-bound

A student met this question in the L4M5 exam. SMART is mentioned primarily in L4M3 Commercial Contracting.

LO: Unknown, AC: Unknown

Persistent late payment of the supplier’s invoices (A) and Unequal sharing of gains, risks, and costs with the supplier (B) are potential sources of conflict as they create dissatisfaction and imbalance in the relationship. According to CIPS materials:

Late payments (A) can strain the supplier’s cash flow, affecting their operational stability and leading to mistrust in the buyer.

Unequal sharing of gains, risks, and costs (B) can result in one party feeling exploited or unfairly treated, which undermines the collaborative spirit essential for long-term partnerships.

In contrast, requesting early supplier involvement, planning visits, or setting delivery dates are typically part of constructive relationship management practices and do not inherently lead to conflict.

While stakeholder feedback is crucial, meetings are not always the most effective review method. Reviews may be better conducted through reports, surveys, or individual debriefs, depending on context. The key is to capture lessons learned, successes, and areas for improvement, and to record them for future negotiations. Forcing all stakeholders into one meeting risks inefficiency or unproductive blame games. CIPS stresses structured reflection and documentation as best practice, ensuring organisational learning and preparation improvements.

As a negotiation nears theclosure stage, experienced negotiators look forbuying signals— both verbal (e.g., positive affirmations) and non-verbal (e.g., nodding, leaning in). These cues indicate readiness to agree and allow the negotiator to move confidently into closing the deal.

“At the closing stage, negotiators should observe both verbal and non-verbal buying signals. These cues can indicate readiness to commit, helping to time the final proposal or acceptance effectively.”

(L4M5 Commercial Negotiation, 2nd edition, Section 3.2 - Closing the Negotiation)