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CIPS Commercial Negotiation Sample Questions (Q190-Q195):

NEW QUESTION # 190
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.

A. Frequent conflict escalation
B. Increasing response time to request
C. More focus on core business
D. Higher revenues
E. Positive feedbacks from customers

Answer: C,E

Explanation:
Trust may create value as following:
Text Description automatically generated with low confidence

LO 1, AC 1.4

NEW QUESTION # 191
Which of the following should be done when undertaking a reflection activity on negotiation? Select TWO that apply.

A. Be honest and objective about your skills
B. Use generalised or ambiguous language when describing your strengths and development areas
C. Identify areas in your skill set where you need to improve
D. Gloss over areas where you need to improve your skills or performance
E. Be overly modest about your contribution to the outcomes of negotiation

Answer: A,C

Explanation:
Giving positive group and individual feedback is easy, as is self-congratulation and, in many cases, it is hoped, this will be an accurate reflection on actual performance. When it comes to developmental or difficult feedback, it is only natural to want to move on and not reflect on the negative or developmental points, or why a negotiation did not achieve its objectives. But this is a mistake. The best learning opportunities come from reflection on what could be done better, and this can be achieved without blame, threat or condemnation.
Everyone and every team will make mistakes and/or have areas where they could have improved. Clearly, if every reflection session concludes that an individual or team keeps making the same mistake, then there is a case to change roles or consider alternative approaches.
About Dos and Don'ts of reflection, you can refer here: https://offices.depaul.edu/human-resources/employee- relations/Documents/Self%20Assesement.pdf

NEW QUESTION # 192
Which of the following are recognised techniques in contract negotiation? Select THREE that apply.

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

Answer: B,E,F

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 # 193
Which of the following are intangible values created by trust in business relationships? Select TWO that apply.

A. Frequent conflict escalation
B. Increasing response time to request
C. More focus on core business
D. Higher revenues
E. Positive feedbacks from customers

Answer: C,E

Explanation:
Trust may create value as following:
LO 1, AC 1.4

NEW QUESTION # 194
Sally is negotiating with an oversea supplier on the price and payment period. Her company and the supplying organisation are equal in bargaining power.The supplier says that they are investing in new facilities and machinery so the payment period should not be longer than 30 days. Sally knows that her company often pays the suppliers after 45 days from the delivery, but at the moment the company has positive cash flow and it is able to pay immediately. Which of the following should be Sally's concession plan?

A. Contend on the normal payment period
B. Agree with supplier's payment period without anyfurther demand
C. Shorten payment period but ask for a discount
D. Demand for a discount without any other concessions

Answer: C

Explanation:
Explanation
In the scenario, the length of payment period is particularly important to the supplier as they are investing new facilities. Otherwise, the buyer's company has apositive cash flow position and budget is available for a shorter payment terms. So this tradeable (payment period) is important to supplier but it is not a significant problem with the buyer. This tradeable will fall within 'Easy concession to trade' quadrant in the following matrix:
Table Description automatically generated

If the tradeable fall within this quadrant, Sally should shorten the payment period in supplier's favour and try to win as many concessions as possible in return. Asking for a discount may be a reasonable trade-off.
LO 2,AC 2.3

NEW QUESTION # 195
......

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Actual L4M5 Tests - 100% Unparalleled Questions Pool

New Actual L4M5 Tests Free PDF | High Pass-Rate Latest Test L4M5 Experience: Commercial Negotiation

CIPS Commercial Negotiation Sample Questions (Q190-Q195):

Pass Guaranteed Quiz 2025 CIPS L4M5: Commercial Negotiation Fantastic Actual Tests