L4M5 Mock Exam Question

This is mock exam A for CIPS L4M5 Commercial Negotiation 2 hour maximum
1. Is it possible to achieve a successful outcome to negotiation without preparation?

A, No, as it is unprofessional and not advisable
B, yes, although it is unprofessional and not advisable
C, yes, you can always achieve a successful outcome this way
D, no, you can never achieve a successful outcome this way
2. Should negotiations always be entered into.?

A, no, the potential benefit hoped for must justify the investment required
B, no, the price and terms offered must always be accepted
C, yes, all offers must be negotiated
D, yes, it must always be done face to face
3. Commercial negotiation can take place during the bid/tender evaluation stage of the procurement cycle, is this
appropriate?
A, no, the supplier will always quote his best price and this must be respected
B, yes, public sector procurement regulations say you must always negotiate at this stage
C,yes, if the supplier has anticipated there will be negotiation, there may be some wiggle room on the price
D, no, negotiation must never be entered into at this stage
4. Which of the following is a source of divergent position regarding the content of negotiation?
A, volume and commitment
B, agenda and governance
C, cultural differences
D, timescale and location
5. If during negotiations you concede to the other party with little debate, you are said to be
A, compromising
B, avoiding
C, collaborating
D, accommodating
6. A win-lose or competing approach to negotiation can also be called

A, a distributive approach
B, an integrative approach
C, a collaborative approach
D, an integral approach
7. The first principle of negotiation is separating the people from the problem or issue, this means
A, making sure you don't appear weak to other members of your negotiating team
B, accepting that the subject matter of the negotiation and not the people involved in the negotiation should be the
focus
C, keeping relevant stakeholders away from the negotiation process
D, remaining 2 metres away from other negotiators during a pandemic
8, the four fundamental principles to negotiations are
A, people, interests, opinions, criteria
B, people, value, options, criteria
C, people, value, opinions, criteria
D, people, interests, options, criteria
9. in which of the following would negotiation be a waste of time?

A, where there is a zone of potential agreement but you don't know what it is
B, when you know what your best alternative to negotiated outcome is
C, when there is no zone of potential agreement
D, when you know what your walk away point is
10, the perception that you have the stronger 'BATNA' when entering into a negotiation with a supplier-
A, means that the supplier will be unwilling to negotiate
B, increases your leverage in negotiations
C, means you will achieve all your objectives of the negotiation
D, means there is no need for a zone of potential agreement
11, which of the six bases of power comes from the belief that a person has a formal right to make demands and expects
others to be compliant?
A, legitimate power
B, coercive power
C, referent power
D, reward power
12, a person who demonstrates honesty, fairness and respect in dealing with suppliers has traits linked to which power
base ?
A, coercive power
B, reward power
C, referent power
D, legitimate power
13, what do the two E's in PESTLE stand for?

A, ethical and environmental
B, economic and environmental
C, economic and ethical
D, economic and equality
14, from the sellers perspective, a buyer with high account attractiveness but low sales volume would be classed as
A, core
B, nuisance
C, develop
D, exploitable
15, standardisation and harmonization of an organisation's specifications can lead to

A, increased buyer leverage through spend concentration
B, increased supplier leverage through spend concentration
C, the need to on- board more and varied suppliers
D, decreased buyer leverage
16 When negotiating, which of the below should be considered?
A. cost-benefit analysis
B. approved supplier list
C. organisational financial procedures
D. vendor rating
17 At which stage of the procurement and supply cycle is there likely to be most negotiation activity?
A. understanding need
B. issue ITT/ RFQ
C. develop tender documentation
D. Delivery of goods/ service
18, Which of the below are the most commonly used styles of procurement procedures?
A. open procedure and restricted procedure
B. competitve dialouge and open procedure
C. competitve procedure with negotiation and restricted procedure
D. competitve dialouge and competitve dialouge with negotiation
19, Which of these are a core area for negotiations within contracts?
A. contract changes and development
B. exit and termination
C. payment and incentives
D. performance management
20, a collaboration style of conflict management would result in which of the below outcomes?
A. win - win
B. win - loose
C. loose - loose
D. loose – win
21, Which of the below is an example of a tradeable if price is they key element of the purchase?
A. lead time
B. payment terms
C. cost of the item
D. mark up %
22, exclusivity of supply is always a good thing for the supplier?

A. false
B. true
23, which of the below is considered to be added value?

A. DDP by the supplier on goods
B. payment terms shortend for the buying organisation
C. lead times extended
D. delivery of goods received a day earlier than expected
24, which is the most effective way your intelectual property rights be protected as the buying organisation?
A. NDA's signed by the supplier
B. a promise from the supplier that no information will be shared
C. a handshake between buyer and supplier that no information will be shared
D. trust your supplier, they are on the approved supplier list after all
25, which of the below is not a 'source of power'?

A. organisational power
B. legitimate power
C. referent power
D. coercive power
26, What does the 'E' stand for in PEST analysis?

A. economical
B. enviromental
C. ethical
D. expertise
28, If you are using the STEEPLE analysis, which of the below are you scanning?
A. macro enviroment
B. micro enviroment
C. organisational internal proceses
D. organisational financial procedures
29, which of the below industries could have high barriers to entry?
A. oil
B. wheat
C. farming
D. manufacturing
30, If you have low spend value and high attractivness, how could the supplier see the buying organisation?
A. develop
B. exploit
C. core
D. nuisance
31, On the relationship spectrum, if you have a distant relationship with a supplier, which type of purchase are you most
likely to cary out?
A. spot purchase
B. 3 year contract
C. 3 year contract with the potential to extend by 1 year
D. call off contract
31, If a supplier is 'transactional' which of the below charecteristic reflects transactional suppliers?
A. none business critical products
B. alternatives exist
C. high switching costs
D. highly customised/ unique products
32, Why is it beneficial that the buying organisation shares its objectives with the supplier?
A. all working towards the same goal
B. so the supplier can take advantage of this knowledge
C. so early supplier envolvement can take place
D. so a closer tactical relationship can be formed
33, The Thomas-Kilmann conflict resolution model was designed to illustrate the options we have when handling
conflict. Which of the objective below provides a win-win solution from the model:
A. Collaborating
B. Avoiding
C. Accommodating
D. Compromising
34, Tradeables (also known as variables) should be discussed at the planning stage of any negotiation. From the list
below what would NOT be considered a variable:
A. Payment type
B. Payment terms
C. Lead time
D. Added value services
35, Using the buyers attractiveness model which segment would provide the highest attractiveness and highest spend
value from the option below:
A. Core segment
B. Exploit segment
C. Nuisance segment
D. Develop segment
36, To increase a buyers leverage during negotiations the buyer may decide to come together and combine their
purchase volumes to attract a better deal. The term for this concentration of spend is known as:
A. Forming a purchasing consortia
B. Harmonisation and standardisation of specifications
C. Reduction of vendor base
D. Volume redistribution
37, Using the relationship spectrum, which would provide the closest relationship from the options below:
A. Partnering
B. Regular trading
C. Call-off contract
D. Alliance
38. A procurement professional will only have to negotiate with external parties? True or False
1. True
2. False
39. In regard to Public Sector procurement, negotiation is more regulated. Which of the two procurement
procedures below do not allow for any type of negotiation to take place?
a. Open Procedure
b. Restricted Procedure
c. Competitive Dialogue
d. Competitive Procedure with Negotiation
e. Innovation Partnerships
40. When considering Conflict Management and the TKI, if a procurement professional only wanted their position to
be successful, which section of the model would they deem to fall under?
a. Compromising
b. Accommodating
c. Avoiding
d. Competing
41. When thinking about the influence of stakeholders in negotaations there are three types of stakeholders. Which
of the below is not a CIPS recognised set of stakeholders?
a. Internal stakeholders
b. Connected stakeholders
c. Disconnected stakeholders
d. External stakeholders
42. If a stakeholder has a high level of interest but a low level of influence, how should they be managed?
a. Through engagement
b. By being involved
c. By building awareness
d. By keeping them informed
43. Prior to entering into a negotiation as many tradeables as possible should be identified. This will increase the
opportunity for:
a. a win-win outcome
b. a win-lose outcome
c. a lose-lose outcome
d. a lose-win outcome
44. What is a BATNA?

a. Best Alternative to a Negotiated Argument
b. Best Alternative to a Negotiated Agreement
c. Best Advantageous Tendered Negotiated Agreement
d. Best Analysed Negotiated Agreement
45. The term “win win” is the more popular description for a collaborative approach. Another word for this is:
a. Distributive
b. Competitive
c. Integrative
d. Zero-sum approach
46. The point at which a party to a negotiation cannot concede any more ground is commonly know as:
a. the walk away point
b. the zone of potential agreement
c. the best alternative to a negotiated agreement
d. an invented option for mutual gain
47.. Which of the below is not a tradeable?
a. Contract Ts and Cs
b. Payment Terms
c. Price
d. Specification
48. If a customer had an impressive reference site this would be considered by the supplier to be:
A. A demonstration of purchasing power

B. An attractiveness factor
C. Of no interest
D. A demonstration of buyer power
49. Which of the below tools sis used to consider the Macro environment?
a. Porter’s Five Forces
b. Thomas-Kilman conflict mode instrument
c. Stakeholder map
d. Pestle analysis
50. A purchasing organisation decides to reduce the number of suppliers it works with in one particular category.
What type of spend consolidation has the organisation carried out?
a. Volume redistribution
b. Vendor base reduction
c. Volume pooling
d. Standardisation of specifications
51. If a customer is viewed as having a high spend but low attractiveness, which quadrant of the attractiveness
model would the customer fit into?
a. Develop
b. Core
c. Nuisance
d. Exploit
52. What does the letters of PESTLE (or STEEPLE) stand for?
a. Political, economic, social, technological, legal, environmental
b. Political, ethical, social, technological, legal, environmental
c. Political, economic, social, technological, leverage, environmental
d. Political, economic, supplier-power, technological, legal, environmental
53. If a supplier supplies a buying organisation with a highly customised product or service, this supplier is likely to be
considered which type of supplier?
a. Tactical
b. Transactional
c. Strategic
d. Operational
54. The relationship spectrum is based on the idea of:

a. supplier segmentation
b. negotiation
c. conflict management
d. analysis of the macro environment
55. If a supplier is considered to be transactional, what type of negotiation will it probably be subject to?
a. win-win
b. win-lose
56. When building commercial relationships based on trust, there are three types of trust. Which of the below is not a
type of trust?
a. Goodwill trust
b. Competence trust
c. National trust
d. Contractual trust
57. Overheads are also known as

A, direct costs
B, indirect costs
C, variable costs
D, fixed costs
58. Establishing the proportion of spend that can be influenced by procurement activities is called
A. The negotiability of spend
B, the assumption of spend
C, the addressability of spend
D, the visualisation of spend
59. To be able to achieve the break even point

A. Selling price per item must be greater than variable cost per item
B. Selling price per item must be greater than the fixed costs
C, variable cost per item must be greater than the selling cost per item
D, fixed costs must be equal to variable costs
60. When overhead costs, such as rent and rates, are fully recovered by being incorporated into the cost of the products
created, this is
A. Marginal costing
B. Variable costing
C. Activity based costing
D. Absorption costing
This is mock exam B for CIPS L4M5 Commercial Negotiation 2 hour maximum
1 A supplier looking only to recover the variable cost elements in their price is adopting
A, marginal cost pricing strategy
B, market price strategy
C, cost plus price strategy
D, penetration price strategy
2 In micro economics, when the quantity demanded equals the quantity supplied determines-
A, the break even point
B, the equilibrium price
C, the total cost of sales
D, the profit margin
3. If a big change in price for a product leads to little or no change in demand for that product, that product is said to be
A, price elastic
B, in the decline stage
C, in the growth stage
D, price inelastic
4. A market where there are many competing producers with similar products who use differentiation to distinguish
themselves from each other is called
A, monopolistic
B, oligopoly
C, perfect competition
D, monopoly
5. When trading internationally, if you pay your suppliers in their currency and your domestic currency appreciates,
what is the likely outcome?
A, suppliers product becomes more expensive to buy
B, suppliers product becomes cheaper to buy
C, buyer is in a weaker position to negotiate discounts
D, you may overspend on budget
6. Using quotas and tariffs to restrict the quantity of goods imported into a country is a form of
A, collusion
B, collaboration
C, fraud
D, protectionism
7. Which of the following is not a factor that supports a successful negotiation?

a. Negotiation approach
b. Hard negotiation
c. Power and Relationships
d. Negotiation objectives
8. When is negotiation not worth undertaking?
a. When the required time investment does outweighs the potential benefits
b. When you have a good relationship with the supplier/customer
c. When you would prefer to focus on other work
d. When you're buying in bulk so the supplier will probably have already given you a good price.
9. Which of the following is not one of the four fundamentals of principled negotiation?
a. People
b. Interests
c. Options
d. Cost
10. What is the walk-away position?

a. The point at which you come to an agreement in a negotiation and can now leave the table.
b. The point at which you've had enough of a negotiation and leave.
c. A position from which you cannot concede any further and must decline the deal.
11. Which kind of personal power is based on high levels of skills or knowledge?
a. Expert Power
b. Informational Power
c. Referent Power
d. Legitimate Power
12. Which is an example of a semi-variable cost?

a. Utilities
b. Raw Materials
c. Salaried workers
d. Insurance
13. Ray Carter's STOP WASTE mnenomic lists 10 ways to change what?
a. Increase efficiency
b. Increase productivity
c. Reduce costs
d. Reduce production time
14. What is absorbtion costing?

a. Not doing anything to account for losses
b. Increasing price to account for losses
c. Allocating indirect costs to direct costs
d. Allocating direct costs to indirect costs
15. What does protectionism do and cause?

a. It props up local industry even when not profitable
b. It encourages exporting goods so develop local industries
c. It protects up essential imports by propping up non-local businesses
d. It encourages local industry by discouraging imports
16. What is equilibrium price?
a. When a market's price doesn't fluctuate because competitors within the market are not competing on price
b. When quantity of supply is equal to quantity of demand
c. When the cost of providing a good/service equals the price charged
d. When price elasticity is low.
17. Which of the below would be classified as a direct cost?

A. raw materials
B. rent of the factory
C. managers salary
D. office printers
18. what is one of the main driver of 'premium pricing'?

A. brand marketing
B. reduced material costs
C. cheap labour
D. penetrate new markets
19. what do marginal costings focus on?

A. variable costs
B. fixed costs
C. direct costs
D. indirect costs
20. how is cost plus pricing calculated?

A. total variable costs + fixed costs + mark up %
B. total fixed costs + total variable costs + mark up %
C. total revenue - total spend
D. mark up % - fixed costs
21. what is a 'market price'?

A. the supplier sells in line with what the market is prepared to pay
B. supplier goes into a market as a loss leader in order to gain entry into a nieche market
C. the buyer determines the maximum price they are willing to pay for an item/ service
D. prices for goods and services shown on the stock market
22. what is the equlibrium price showing?

A. the right quantity being sold at the right price
B. where direct costs cross indirect costs
C. where demand is exceeding supply for a specific item
D. the state of the market at a point in time that can be used in conjunction with historical data to predict trends
23 what is an inflation rate?

A. price increases on goods/ services
B. tax paid on goods at the boarder of one country entering into another
C. economic growth
D. used to assist in calculate the unemployment rate in a country
24 The supermarket chain Asda would best fall into which of the below market categories?
A. perfect competition
B. monopoly
C. duopoly
D. oligopoly
25. which of the below is a key macroeconomic factor?

A. protectionism
B. organisations financial procedures
C. coperate governance
D. supply and demand
26. when negotiating key terms with a supplier overseas, which currency is best suited that you pay your supplier in?
A. your own currency
B. the currency of the supplier
C. watch the market closely and agree to pay the supplier once the contract has concluded in who's currency has
the best benefit for the buyer
D. watch the market closely and agree to pay the supplier once the contract has concluded in who's currency has
the best benefit for the supplier
27. during negotiations, concessions can be traded, if delivery time was of low importance to you but high importance to
the supplier which of the below decision would you make? (the bargaining matrix)
A. easy concession to trade
B. low value
C. difficult
D. easy concession to win
28. what does the acrynom ZOPA stand for?

A. zone of potential agreement
B. zone of polite agreement
C. zone of pre agreed agenda
D. zone of pre agreement
29. what are the two levels of need when understanding how to ender a negotiation
A. the organisation and the individual
B. the organisation and the supplier
C. the individual and the supplier
D. the buyer and the supplier
30. during negotiations, concessions can be traded, if getting the best price was the key element for the buyer and
selling the item for the highest price was key to the supplier which of the below decisions would you make? (the
bargaining matrix)
A. difficult
B. low value
C. easy concession to trade
D. easy concession to win
31 which of the below styles of negotiator would be described as 'a numbers person'
A. logic
B. tough
C. peoples person
D. dealer
32. where is the ideal negotiation location for equality for the buyer and supplier?
A. a mutually agreed third party location
B. buyers location
C. suppliers location
D. virtual boardroom meeting
33. typically what is a weakness of dealing in negotiations with someone who is a good listener?
A. looses sight of essentials
B. too accommodating
C. finds it difficult to deal with conflict
D. discloses information too radily
34. which of the below is classed as a strength of someone who has a tough negotiating style?7
A. methodical
B. builds relationships
C. listens to the other party
D. creative/ seeks opportunity
35. how would you deal with someone during negoitations if their style is a good listener, but they end to loose sight of
essentials?
A. use their name frequently
B. build trust and listen
C. trade concessions
D. use powerful arguments
36 Which of these are not one of the key phases of negotiation?

A. 1 Open
B. 2 Agree/Close
C. 3 Respond
D. 4 Test
37 relation to phases of negotiation what does ZOPA stand for

A. 1 Zone of Potential Argument
B. 2 Zone of Potential Agreement
C. 3 Zone of Potential Acceptance
D. 4 Zone of Possible Arrangement
38 By the end of the opening stage you should

A. 1 Be familiar with everyone’s names
B. 2 Have traded concessions
C. 3 Shake hands on the agreement
D. 4 Check that you have got all the issues you want to discuss on the table
39 At what stage in negotiation do parties trade concessions?

A. 1 Opening Stage
B. 2 Testing Stage
C. 3 Proposing Stage
D. 4 Bargaining Stage
40 At what stage is key information gained that may help you decide which negotiating option to go for, or to change
your approach?
A. 1 Opening Stage
B. 2 Testing Stage
C. 3 Proposing Stage
D. 4 Bargaining Stage
41 When looking at persuasion methods, persuasion refers to

A. 1 ‘pushing’ on the other party so that they accept their own change in attitude or behaviour as a result of your
actions.
B. 2 ‘pushing’ on your party, which gets them to change their attitude or behaviour as a result of reflection.
C. 3 ‘pushing, on your party, which gets them to reassess their attitude or behaviour as a result of reflection.
D. 4 ‘pulling’ on the other party, which gets them to change their attitude or behaviour as a result of reflection.
42 A Collaborative style refers to

A. 1 A pull style where you have to tap into others’ emotions, engage their imagination and help them visualise
what is possible
B. 2 A team-oriented pull style where the influencer aims to involve others who will offer view and ideas about the
issue.
C. 3 An issue-driven push style where the influencer wants others to buy into their ideas by presenting them in an
even-handed, logical, rational and objective way.
D. 4 An ‘I’-driven push style where the influencer asserts their own views and ideas and expects others to follow.
43 If you are an expert, are working with new or inexperienced staff, and you require speedy action you should use
which ‘push’ or ‘pull’ style?
A. 1 Directive
B. 2 Persuasive
C. 3 Collaborative
D. 4 Visionary
44 With regards to tactics, which of these statements is false.

A. 1 They work best if used sparingly and as part of your plan.
B. 2 They are particularly effective when dealing with untrained negotiators.
C. 3 Their effectiveness will decrease over time, as the other party will recognise and be able to counter them if
you use them repeatedly.
D. 4 They are particularly effective when you have no concessions to offer.
45 The Salami tactic refers to

A. 1 Pretending something that you need is not important.
B. 2 Asking for an exceptional one-off concession that is normally hard to get.
C. 3 Extracting another concession that allows you to sign off there and then.
D. 4 Saying publicly what you expect from a deal.
46 Which of the following are not uses of questioning in negotiation?

A. 1 To test the honesty of the other party
B. 2 Elicit information
C. 3 To create and sustain movement in a negotiation if it stalls
D. 4 Fight distractions
47 Which of these is not a type of questioning style in negotiation?

A. 1 Hypothetical questions
B. 2 Prompting questions
C. 3 Probing questions
D. 4 Open questions
48 Which of the following are not required to help you to become a skilled negotiator?
A. 1 Not interrupt the other party when they are speaking.
B. 2 Willing to compromise
C. 3 Be motivated to listen.
D. 4 Listen with a goal in mind
49 Professor Geert Hofstede classified national cultures against four dimensions. The Individualism versus collectivism
refers to
A. 1 The degree to which individuals are integrated into groups
B. 2 The distribution of roles between genders
C. 3 The degree to which people need to explain the inexplicable
D. 4 The degree of inequality that exists
50 Professor Geert Hofstede classified national cultures against four dimensions. The distribution of roles between
genders refers to which dimension?
A. 1 Long-term orientation versus short-term orientation
B. 2 Indulgence versus restraint
C. 3 Masculinity versus femininity
D. 4 Uncertainty avoidance
51 In negotiation, reflection refers to

A. 1 Making changes as a result of discussions with other party
B. 2 Reviewing what went well and what could have gone better in order to improve future performance
C. 3 Replicating the same negotiation style every time
D. 4 Giving feedback to let the negotiator
52 Which of these is not a benefit of reflection?

A. 1 It helps leaders to identify future leaders through their capability to give and receive feedback.
B. 2 The strengths and weaknesses of the negotiation strategy can be confirmed.
C. 3 It makes participants more focused during the meeting.
D. 4 It hinders performance in future negotiation settings.
53 Which of these is an assertive/co-operative conflict management style?

a. Collaborating
b. Competing
c. Avoiding
d. Accommodating
54 What is the objective of accommodating?
a. To win
b. To yield
c. To find a middle ground
d. To delay
55 Which of these is not a part of PESTLE?
a. Political
b. Social
c. Landscape
d. Technological
56 Which of these is high attractiveness/low spend in the customer segmentation chart?
a. Develop
b. Nuisance
c. Exploit
d. Core
57 Which of these is not a sign of trust in a relationship?
a. Sharing Information
b. On-Time Delivery of products/Services
c. Supplier welcomes innovation
d. Supplier is a big player in the market
58 Which of these is not a type of pricing

a. Penetration pricing
b. Cost plus pricing
c. Budget pricing
d. Marginal pricing
59 Which two axis intercepts to from an equilibrium point?
a. Price/time
b. Price/quantity
c. Price/quality
d. Price/On-time delivery
60 Which of these is not a microeconomic factor?

a. Inflation rates
b. Economic growth
c. Profit/Loss
d. Unemployment
This is mock exam C for CIPS L4M5 Commercial Negotiation 2 hour maximum
1 Which of these is an easy concession win?
a. Important to you but not the other party
b. Important to the other party but not to you
c. Important to both parties
d. Important to neither party
e.
2 Which of these is not a negotiation style
a. Warm
b. Tough
c. Logic
d. Easy
3. - In relation to conflict management styles, being assertive and unco-operative in a negotiation would be
classed as which of the following:
A - Collaborating
B – Compromising
C - Avoiding
D - Competing
4 In Negotiation team roles, who would be the spokesperson and lead negotiation meetings?
A - Team Leader
B - Chief Negotiator
C - Commercial Lead
D - Scribe
5 Which of the following would be a characteristic of a Distributive approach to a negotiation?

A - Win-Win outcome for both parties
B - Long term / regular interaction with the other party
C - Get as much of the 'pie' as you can
D - Information sharing in relation to goals
6 Which of the following best describes the 'Zone of Potential Agreement'?
A - The 'ZOPA' defines the price range in which a buyer and seller can possibly come to an agreement
B - The 'ZOPA' advises the seller how much the buyer is willing to pay
C - The 'ZOPA' advises the price range in which no agreement can be made
D - The 'ZOPA' advises both parties the best alternative to a negotiated agreement
7 Power based on a persons high levels of knowledge and skill is known as what type of power:
A - Reward Power
B - Referent Power
C - Expert Power
D - Legitimate Power
8 Allocating overheads in which indirect costs are 'loaded' into direct costs related to specific jobs using an
estimate is known as which type of costing method?
A - Absorption Costing
B - Marginal Costing
C - Variable Costing
D - Activity-based Costing
9 - In supplier costing strategies, if a supplier reduces prices / has a low entry price, this is known as what type
of pricing strategy?
A - Cost-plus pricing
B - Penetration pricing
C - Premium pricing
D - Market pricing
10- Which of the following is not a determinant of supply?
A - Price
B - Technology
C - Innovation
D - Quality
11 - A market in which there are a small number of suppliers who exert a significant influence in that market is
known as?
A - Perfect Competition
B - Oligopoly
C - Monopoly
D - Monopolistic competition
12 - In concession planning, a low importance to you, and a high importance to the other party would be
known as what type of concession?
A - Low Value
B - Difficult
C - Easy concession to trade
D - Easy concession to win
13 - Which of the following would be a 'don't behaviour at the bargaining phase of a negotiation?
A - Make unplanned concessions
B - Use time tactics
C - Make notes of tradeables
D - Observe body language
14 - Which of the following situations would a Directive (push) persuasion method be used?
A - The influencer needs commitment from other parties
B - The influencer is actively seeking innovative ideas from others
C - There is no clear solution to the issue at hand
D - The influencer is an expert while the followers are not
15 - Which of the following questioning styles would you use to help generate a specific response?
A - Open question
B - Closed question
C - Probing question
D - Hypothetical question
16 - Which of the following would international cultural differences not be as important:
A - A small value one off purchase from a foreign supplier

B - A complex purchase from a foreign supplier
C - Buying a service where your organisation will be engaging with teams of people from other countries
D - When the stakes are high and a minor misunderstanding can lead to major problems
17 - Which of the following would not be a benefit of reflecting on a negotiation to improve future
performance?
A - Lessons can be learned for next time
B - Strengths and weaknesses of the negotiation strategy can be confirmed
C - Apportioning blame to the person who's fault it was that the negotiation was not successful
D - Weaknesses of team members can be identified for future development
18 In they key phases of negotiation, which is the second step?
A. test
B. open
C. move
D. agree/close
19 at which stage of negotiations are both parties likely to trade concessions?
A. proposing stage
B. bargaining stage
C. testing stage
D. agreement and closing phase
20 at the agreement and closing stage of a negotiation, is a deal always made?
A. yes, that is the whole point of the process, to reach a point where you agree and close the deal
B. no, the discussion should always be thought about after negotiations, you should take a couple of days
to consider the offer and meet again
C. no, the whole purpose of the meeting may have been to go to the next stage of sign off, with someone
who has the authority to do so
D. yes, you should always shake hands and walk away at this point
21 at which of the stages of negotiation will both parties be looking to establish if ZOPA exists?
A. bargaining stage
B. testing stage
C. proposing stage
D. opening stage
22 which of the below typical behaviours should be avoided in the opening stage of negotiations?
A. start the conditioning process

B. put any markers down
C. be well presented
D. consider using visual aids to set out key objectives
23 the style 'directive' (push) is particularly effective in which of the following situations?
A. the situation involves a safety or security critical issue or a strict deadline

B. the influencer needs commitment from the other parties
C. the influencer is actively seeking innovative ideas from others
D. there is no clear solution to the issue in hand
24 the style 'visionary' (pull) is particularly effective in which of the following situations?
A. research has identified a best answer

B. the current situation demands innovative thinking
C. the influencer has a great deal of knowledge about the issue
D. the situation demands that the influencer gets other to buy into an unpopular decision
25 the tactical ploy 'salami' refers to which of the below?
A. unexpected extras are added on after the negotiations that were not clarified or explicitly discussed
B. you wait until the end of the discussions to ask for a concessions you know is contentious
C. pretending something you need is not important
D. you ask for an exceptional one off concession that is normally hard to get
26 which of the tactical ploys is best described as 'pretending something you need is not important, e.g.
urgency'?
A. outrageous initial demand
B. getting peanuts
C. thank and bank
D. add on
27 if you were to get a one off extra - long payment terms on an contract agreement, which tactical ploy
would this relate closest too?
A. salami
B. add on
C. thank and bank
D. one more thing
28 to try and get the other party to see things in a different way, which types of questioning style would you
use?
A. forceful questions
B. hypothetical questions
C. probing questions
D. open questions
29 to seek specific information from a discussion, which style of questioning would you use?
A. closed questions
B. hypothetical questions
C. open questions
D. probing questions
30 to show you are actively listening during a discussion, restating is sometimes a good tactic to use, what
does this entail?
A. bringing together the facts of the problem to test understanding

B. pause after the other party has stopped talking
C. let the person know what your initial thoughts are on the situation
D. repeat every so often what you think the other person has said
31 which of the below is a non-verbal communication technique?
A. active listening
B. the tone of your voice when communicating
C. facial expressions
D. using pauses and silence after the other person has finished speaking
32 according to Hofstede's cultural dimensions, what does the acronym IND stand for?
A. individualism versus collectivism

B. masculinity versus feminism
C. power distance index
D. indulgence versus restraint
33 roughly how many objectives should a standard negotiation have?
A. 3
B. 8
C. 6
D. 2
34 what is the main aim of reflection on a negotiation?
A. to better understand they key objectives of the other party

B. lessons can be learned for future negotiations
C. to negotiate better payment terms for the current contract
D. to reduce the lead times of delivery of goods to the end consumer
35 which of the below would be considered an objective element to reflect on when assessing performance during
negotiation?
A. did we present well with confidence?

B. did logistics work or play any influencing role?
C. did we stay within our trading limits?
D. how did we respond to questions?
36 which of the below would be considered a process element to reflect on when assessing performance
during negotiation?
A. did we achieve our objectives?

B. did we keep to agreed roles?
C. did we agree next steps?
D. did we/ they use any tactical ploys?
37 Which of these is NOT a source of conflict that can arise during the negotiation process?
A. Team size and makeup
B. Lack of clarity before the negotiation
C. Method of communication – face-to-face, video or phone call
D. Type of goods being discussed
38 Which of the following is the correct statement. To minimise conflict…
A Agree ‘ground rules’ with the other party in advance of any negotiation meetings
B Agree ‘ground rules’ with the other party after of negotiation meetings have taken place
C Always dress in smart attire
D Always ensure drinks are available
39 In the five approaches to conflict resolution what is the objective of accommodating

A. Objective is to find a middle ground
B. Objective is to find a win-win solutions
C. Objective is to yield
D. Objective is to delay
40 The Thomas–Kilmann conflict mode instrument (TKI) outlines the positions available when entering a negotiation.
The vertical axis refers to
A. A Cooperativeness
B. B Assertiveness
C. C Compromise
D. D Aggressiveness
41 The Thomas–Kilmann conflict mode instrument (TKI) outlines the positions available when entering a negotiation.
The horizontal axis refers to
A. A Cooperativeness
B. B Assertiveness
C. C Compromise
D. D Aggressiveness
42 Which of these is not an approach to conflict resolution

A. Avoiding
B. Collaborating
C. Compromising
D. Negotiating
43 The principled style has of negotiation has how many principles.

 A One
 B Two
 C Three
 D Four
44 Which of the following statement is referring to the second principle of negotiation?
 A Focus on interests, not positions.
 B Insist on using objective criteria.
 C Separate the people from the problem or issue
 D Invent options for mutual gain
45 Which of the following statement is referring to the fourth principle of negotiation?
A Focus on interests, not positions.
B Insist on using objective criteria.
C Separate the people from the problem or issue
D Invent options for mutual gain
46 Tradeables are:
A items that are non-negotiable
B items that you offer once all negotiations are complete
C items that you are willing to trade in a negotiation
D items that you are not willing to trade in a negotiation
47 Which of the following is NOT an example of a tradeable?

A Lead time
B Intellectual property rights
C Price
D Environmental benefits
48 How many levels need to be taken into consideration when considering the relative power of buyers and suppliers.
A One
B Two
C Three
D Four
49 Which of the following is not a level of when considering the relative power of buyers and suppliers?
A Macro Environment
B Micro Environment
C Intermediate Environment
D Supply positioning one-to-one organisation power
50 PESTLE refers to
A Political, Economic, Social, Technological, Legal and Environmental factors.
B Political, Economic, Strategic, Technological, Legal and Environmental factors.
C Pecuniary, Economic, Strategic, Tactical, Legal and Environmental factors.
D Profitable, Economic, Social, Technological, Legal and Environmental factors.
51 Which of the following is not used by Porter’s Five Forces for analysis of
A The bargaining power of buyers

B Market Value
C The threat of new entrants
D The intensity of industry rivalry
52 Leverage can be increased through analytics. Which of the following is not a factor when carrying out a spend
analysis?
A Who in your organisation is spending the money
B Who they are spending it with
C How much they are spending on which categories
D How often are they spending
53 Which of the following is not a sign of trust in business relationships?
A Regular requests for price increases
B Pride and strong effort, high employee and customer satisfaction
C Mutually agreed and managed objectives and success measures for the contract, including KPIs
D High-performance teams that feel empowered to get the job done
54 Acceptance on both sides of the potential need to renegotiate terms when business conditions change is
A A sign of disruption is business relationships
B A sign of trust in business relationships
C A sign of disagreement in business relationships
D A sign of loyalty in business relationships
55 Which of the below describes “Mark-Up”?
1. The amount added to the cost of an item to get to its selling price and is expressed as a
percentage
2. The amount added to the cost of an item expressed as a percentage of the selling price
56 If a supplier charges a very high price, not connected with cost structures but based on reputation and
the perception that the product/service is of a superior quality, what pricing strategy has the supplier
adopted?
a. Marginal cost pricing
b. Penetration pricing
c. Cost-plus pricing
d. Premium pricing
57 Which pricing strategy is usually based on historical data and may ignore market forces?
a. Marginal cost pricing
b. Penetration pricing
c. Cost-plus pricing
d. Premium pricing
58 When would it be appropriate to use PCCA?

a. On Strategic categories
b. On Leverage categories
c. On Non-Critical categories
d. On Bottleneck categories
59 The practice of varyig the price for a product or service to reflect changing market conditions, in
particular the charging of a higher price at a time of greater demand is known as what?
a. Moveable pricing
b. Changeable pricing
c. Dynamic pricing
d. Inconsistent pricing
60 . A change in inflation rate would be what type of factor?
1. Microeconomic
2. Macroeconomic
This is mock exam A for CIPS L4M5 Commercial Negotiation 2 hour maximum
1 The cost of the opportunity forgone by making a choice of one option over another is known as what?
a. FOMO
b. Opportunity Cost
c. Opportunity Lost
d. Misallocation of resources
2 What is equilibrium price?
a. The point where the quantity demanded is equal to the quantity supplied
b. The point where the quantity demanded is equal to the cost
c. The point where VC+FC=TC
d. The point where TC=R
3 When considering the affect of a change in exchange rates. If you pay a supplier in your currency and
your currency appreciates, which of the below is a likely impact?
a. You (as the buyer) are now in a weak position to negotiaate discounts
b. The supplier’s product has become cheaper to buy
c. You (as the buyer) are now in a strong position to negotiate discounts
d. The supplier’s product has become more expensive to buy
4 Quotas and tariffs can be considered to be what type of macroeconomic factor?
a. Economic growth factor
b. Protectionism factor
c. Unemployment rate factor
d. Exchange rate factor
5 What is the “bargaining mix”?
a. All the people who will be involved in the negotiation
b. All the concessions that will be made during the negotiation
c. Who the TOP is
d. All the issues in a project that are up for negotiation
6 When entering into a commercial negotiation which is considered by the buying organisation as “non
strategic”. How should the procurement professional prepare?
a. They shouldn’t. As the negotiation is “non strategic” there is no need. The professional can
improvise
b. They should prepare a large document detailing their strategy
c. They should consider their strategy prior to the negotiation and detail – it may only be a single
page
d. The shouldn’t be entering into a negotiation for a non strategic purchase
7 If you have a relationship with a supplier that is key to your business what sort of tactics are you likely
to employ?
a. Ones that will ensure the TOP’s needs are met as well as yours
b. Ones that will ensure your needs are met
c. Ones that will ensure your needs are met at the expense of TOP
d. Ones that will ensure the TOP’s needs are met
8 Your BATNA could also be described as
a. Your break even point
b. Your opportunity cost
c. Your fallback position
d. Your bargaining mix
9 “MIL” can be used when identifying the preferred outcomes of a negotiation. What does “MIL” stand
for?
a. Most, intend, like
b. Must, intend, lose
c. Must, intend, lowest
d. Must, intend, like
10. If a person has a warm negotiation style, which of the below would be one of their strengths?
A. Assertiveness
B. Methodical approach
C. Relates well to people
D. Assumes leading role in meetings
11 If a person has a logical negotiation style, which of the below would be one of their weaknesses?
1. Too accommodating
2. Tends to focus on issues and not the people involved
3. Tends to neglect long term goals
4. Adopts rigid positions
12 A negotiator who I impulsive and can be impatient would probably have what type of negotiation
style?
a. Dealer
b. Warm
c. Tough
d. Logical
13. The Thomas-Kilmann conflict mode instrument (TKI) produced five approaches to conflict resolution, each with its
own objective. What is the objective for collaborating?
A) To find middle ground
B) To delay
C) To find a win-win solution
D) To yield
14 The Thomas-Kilmann conflict mode instrument (TKI) produced five approaches to conflict resolution, each with its
own objective. What is the objective for compromising?
a) To win
b) To delay
c) To yield
d) To find middle ground
15. Taking the five conflict management styles and considering there are two parties to a conflict, how many possible
combinations are there?
a) 30
b) 26
c) 28
d) 25
16. What are connected stakeholders?
a) Those who, by contractual or commercial relationships, have a significant stake in organisational activity but
have a low level of influence on procurement negotiations.
b) Those who, by contractual or commercial relationships, have a significant stake in organisational activity and
have a high level of influence on procurement negotiations.
c) Those who, by contractual or commercial relationships, have a small stake in organisational activity and have a
high level of influence on procurement negotiations.
d) Those who, by contractual or commercial relationships, have a small stake in organisational activity and have a
low level of influence on procurement negotiations.
17 . How should a procurement professional handle a stakeholder with a high level of influence but a low level of
interest during commercial negotiations?
a) Involve
b) Engage
c) Make Aware
d) Inform
18. What is the difference between an integrative approach and a distributive approach?
a) An integrative approach calls for collaboration between two parties so enable a win-win situation whereas a
distribution approach is uncollaborative and causes a win-lose situation for both parties.
b) An integrative approach creates unbalances levels of value between the buyer and seller, whereas a distributive
approach creates a balanced approach.
c) An integrative approach is generally a short-term/once off relationship with the other party (TOP), whilst a
distributive approach is generally long term/regular engagement.
d) An integrative approach is uncollaborative and causes a win-lose situation for both parties whereas a
distribution approach calls for collaboration between two parties so enable a win-win situation.
19 . Principled negotiation is based on four fundaments: people, interests, options and…
a) Leverage
b) Criteria
c) Scale
d) Location
20 . According to the price plateau, which is the principled approach?
a) Cold Tough
b) Cold Easy
c) Warm Easy
d) Warm Tough
21. What is wrong with using a ‘positional bargaining’ process? Select two that apply.
a) Time-consuming
b) Expensive
c) Encourages stubbornness
d) Causes a win-lose approach
22. Which of the below are tradeables? Select two that apply.
a) Price
b) Place
c) Payment Terms
d) Staff
23. What are the six bases of power?
a) Expert, Informationals, Referent, Legitimate, Position, Attitude
b) Expert, Informationals, Referent, Position, Legitimate, Reward
c) Expert, Referent, Legitimate, Reward, Position, Control
d) Expert, Informationals, Referent, Legitimate, Reward, Coercive
24. Which tool can be used to understand the macro environmental forces that influence the balance of power?
a) STEEPLE
b) Porter’s Five Forces
c) The Supplier Positioning Model
d) Customer Attractiveness and Purchasing Power Matrix
25 . From the three levels to consider when considering the relative power of buyers and suppliers, which would you use
Porter’s Five Forces for?
a) Level 1: Macro Environment
b) Level 2: Microenvironment
c) Level 3: One-to-one Buyer/Supplier Dynamics
d) Levels 2 & 3
26. How can the leverage be increased to project the organisation you work for as an attractive customer, even if it is
currently not a big spender?
a) Prompt payment
b) Entertaining i.e. meals out, trips away.
c) False claims
d) Unfriendly staff
27 . What is a spend cube?

a) A three-dimensional model which displays a supplier’s spend across the year
b) A costing tool used to calculate budgets
c) A data collection tool used to gather supplier information on spend
d) A review of spend data highlighting the three dimensions: sub-categories and commodity groups purchased
across the organisation, stakeholders or departments buying the category and comparative spend with
difference suppliers
28. Which of the below is not a sign of trust in business relationships?

a) Sharing of information
b) Supplier being encouraged to innovate
c) Reducing payment terms
d) Mutually agreed KPIs
29. What is goodwill trust?

a) Trust based on TOP professional qualifications
b) Trust based on TOP experience
c) Trust based on threats
d) Trust based on knowing TOP has your interests and heart and will not behave opportunistically
30. What would be the most effective way of breaking the vicious circle of blame?
a) Move to a new supplier straight away
b) Writing a formal complaint to the MD/CEO of the supplier
c) Calling the supplier out on social media
d) Using the Conflict Resolution Matrix
31. What is absorption costing?

a) Costing based on usage
b) Discounted costs from supplier
c) Absorbs indirect costs into the direct costs related to specific jobs, processes or outputs
d) Focuses on variable costs
32. What is marginal costing?

a) Focuses on variable costs
b) Costing based on indirect costs
c) Costs based on usage
d) Discounted costs from supplier
33. What is activity-based costing?

a) Focuses on variable costs
b) Absorbs indirect costs into the direct costs related to specific jobs, processes or outputs
c) Costs based on usage
d) Costs based on labour costs
34 . The Chief Financial Officer for a factory which produces engines for aeroplanes decides to spread the cost of the
factory’s heating across each unit produced. What is this an example of?
a) Direct costing
b) Marginal costing
c) Activity-based costing
d) Absorption costing
35. What is the difference between mark-up and margin?

a) Mark-up is the amount added to the cost of an item to get to its selling price and is expressed as a percentage,
whereas margin is the amount added to the cost of an item expressed as a percentage of the selling price.
b) Margin is the amount added to the cost of an item to get to its selling price and is expressed as a percentage,
whereas mark-up is the amount added to the cost of an item expressed as a percentage of the selling price.
c) Mark-up is the amount added to the cost of an item to get to its selling price and is expressed as a percentage,
whereas margin is the amount multiplied to the cost of an item expressed as a percentage of the selling price.
d) Margin is the amount added to the cost of an item to get to its selling price and is expressed as a percentage,
whereas margin is the amount multiplied to the cost of an item expressed as a percentage of the selling price.
36. If the price is set above the equilibrium price, what will happen to supply and demand?
a) Demand will exceed supply
b) Supply will exceed demand
c) Both demand and supply will increase
d) Both demand and supply will decrease
37 . What would the price of the product be described as if a small change in price lead to a big change in demand?
a) Inexpensive
b) Good value
c) Inelastic
d) Elastic
38 . Which of the four main structures of industries features no barriers to entry to the market or exit from the market?
a) Monopolistic competition
b) Oligopoly
c) Monopoly
d) Perfect competition
39. What are the benefits of having a strategy for negotiations?

a) To create a win-lose situation
b) Negotiation boundaries are clearly defined
c) Knocks the supplier off balance
d) Outcomes are confusing
40. Negotiation plans involve four key activities.

a) Understanding suppliers KPIs, Reaching an pre-negotiation objective with supplier, researching the market,
researching the supplier.
b) Seeking buyers positioning, understand suppliers BE point, developing concession plans, planning the resources
and logistics required and agreeing team roles.
c) Developing and prioritising your objectives and limits, seeking to understand supplier’s objectives, developing
concession plans, planning the resources and logistics required and agreeing team roles.
d) Developing and prioritising your objectives and limits, seeking to understand supplier’s objectives, researching
the market, developing concession plans
41. What lowers the risk of negotiations going into deadlock?

a) Setting aside a larger budget
b) Having as many tradable variables as possible
c) Blackmail
d) Look for alternative suppliers
42 . Concessions planning helps identify which variables that you can negotiate with. What are the difficult concessions?
a) These have high value to both you and the other party
b) These have a high value to you, but little importance to the other party
c) These are of little importance to you, but highly valued by the other party
d) These have little importance top either party
43 . What are the easy concessions to win?

a) These have high value to both you and the other party
b) These have a high value to you, but little importance to the other party
c) These are of little importance to you, but highly valued by the other party
d) These have little importance top either party
44. In what order are the stages of commercial negotiation?

a) Opening stage, Proposing stage, Testing Stage, Bargaining stage, Agreement and Closing Stage
b) Opening stage, Bargaining stage, Testing stage, Proposing stage, Agreement and Closing stage
c) Opening stage, Testing stage, Bargaining stage, Proposing stage, Agreement and Closing stage
d) Opening stage, Testing stage, Proposing stage, Bargaining stage, Agreement and Closing stage
45 . In which stage would you look to establish a ZOPA (Zone of Potential Agreement)?
a) Bargaining stage
b) Testing stage
c) Agreement and closing stage
d) Proposing stage
47. At what stage should you test whether the people in the room have the authority to make a deal?
a) Bargaining stage
b) Testing stage
c) Opening stage
d) Proposing stage
48 . At what stage would you trade concessions?
a) Bargaining stage
b) Testing stage
c) Opening stage
d) Proposing stage
49. What is anchoring when negotiating?
a) Sticking to your original price
b) Where people give too much weight on the first price put forward
c) Sticking to your objectives
d) Seating position
50. What is the difference between persuasion and influence?

a) Persuasion means ‘pushing’ on the other party so that they accept their own change in attitude or behaviour as
a result of your actions. Influence means ‘pulling’ on the other party, which gets them to change their attitude or
behaviour as a result of reflection.
b) Influence means ‘pushing’ on the other party so that they accept their own change in attitude or behaviour as a
result of your actions. Persuasion means ‘pulling’ on the other party, which gets them to change their attitude or
behaviour as a result of reflection.
c) Persuasion means ‘pulling’ on the other party, which gets them to change their attitude or behaviour as a result
of reflection. Influence means ‘pushing’ on the other party so that they accept their own change in attitude or
behavour as a result of your actions.
d) Influence means ‘pulling’ on the other party so that they accept their own change in attitude or behaviour as a
result of your actions. Persuasion means ‘pushing’ on the other party, which gets them to change their attitude
or behavior as a result of reflection.
51. Push and pull can each be broke down into two types. Which two types can push be broken down into? Select two
that apply.
a) Directive
b) Reasoning
c) Collaborative
d) Visionary
52. Push and pull can each be broken down into two types. Which two types can pull be broken down into? Select two
that apply.
a) Directive
b) Reasoning
c) Collaborative
d) Visionary
53. You are an experienced buying manager for a large supermarket retailer. You have just taken on a new graduate
whose lack of experience does not want to hinder the team’s record of turning around projects quickly. What style
should you adopt with the graduate?
a) Directive
b) Reasoning
c) Collaborative
d) Visionary
54 . You and your team have been tasked by the buying director to deliver a project which is entirely new to any
previous projects completed by the buying team before. What style should you adopt with your team?
a) Directive
b) Reasoning
c) Collaborative
d) Visionary
55 . During negotiations you keep repeating to the supplier how your company are in the process of squeezing the
budget as part of efforts to raise capital for a new investment. What negotiation tactic can this be described as?
a) Salami (one slice at a time)
b) Thank and bank
c) Broken record
d) Getting peanuts
56 . Whilst negotiating payment terms with a supplier, you wish for the other party to expand on an answer they have
just provided. What sort of questioning style is this?
a) Hypothetical
b) Open
c) Closed
d) Probing
58 . What is emotion labelling when improving listening skills?

a) Putting feelings into words to help a person see things more objectively
b) Reflecting the speaker’s words in terms of feelings
c) To repeat every so often what you think the person said to show you are listening
d) Letting the other person know what your thoughts are on the situation
59. Which communication method is interpreted least by the other party?

a) The tone of your voice
b) The words you say
c) Your body language and facial expression
d) The loudness of your voice
60 . Which of the below isn’t a benefit of reflection?

a) Lessons can be learnt, regarding which tactics worked/did not work
b) Participants can be given the opportunity to air their thoughts with colleagues
c) Assists current leaders in identifying future leaders in their ability to provide feedback
d) Being able to tell the other party what you really think of them
This is mock exam E for CIPS L4M5 Commercial Negotiation 2 hour maximum
1. Which of the below isn’t a tip to protect relationships?
a) Telling a white lie
b) To not publicly criticise suppliers even if negotiations breakdown
c) Seek a win-win
d) Respect confidentiality
2. There are three levels considering the relative power of buyers and suppliers, what is level 2?
A. Microenvironment
B. Macro Environment
C. Supply positioning one to one organisation power
3 . In the four main negotiation styles which of these is considered a ‘People person’?
A. Dealer
B. Warm
C. Logic
D. Tough
4 Which Pricing Strategy focuses on the price being well below the market price?
A. Premium Pricing
B. Penetration Pricing
C. Marginal Cost Pricing
D. Market Pricing
5 Both Parties trade concessions at the Bargaining stage.

A. True
B. False
C.
6 Which of these two are Influence methods?
A. Directive
B. Collaborative
C. Persuasive
D. Visionary
7 What type of buyers are affected by macroeconomics?

E. Big
F. Small
G. All
8 Which of the following is NOT a macroeconomic factor?

E. Inflation rate
F. Economic growth
G. Climate
H. Protectionism
9 What type of person would adopt a ‘warm’ negotiation style?

D. A people person
E. A hard-nosed negotiator
F. A numbers person
G. A trader who loves bargaining
10 Indirect materials is a cost that is absorbed into direct costs?

E. True
F. False
11 When is the equilibrium price determined?

D. When the quantity demanded is equal to the quantity supplied.
E. When the quantity demanded is less than the quantity supplied.
F. When the quantity demanded is more than the quantity supplied.
12 Which of the following is a benefit to having a strategy for negotiation?
A. There is no need for tradeables if you have a strategy
B. The outcome of the negotiation is a forgone conclusion if you have a strategy
C. Outcomes expected from the negotiation are clearly defined if you have a strategy
D. You can dictate terms if you have a strategy
13 . From a buyer point of view, what is the least preferable outcome to a negotiation?
A. Buyer achieves their 'must have' requirement
B. Buyer achieves their 'intended' requirement
C. Buyer achieves their 'like' requirement
14 . Within the 'bargaining mix' which concessions are usually the easiest to win ?
A. Those that are of high importance to the other party and low interest to you
B. Those that are of high importance to both parties
C. Those that are of low importance to both parties
D. Those that are of high importance to you but of low importance to the other party
15 . Concessions that are of little importance to you but are of high importance to the other party are-
A. Easy concessions to win
B. Difficult concessions
C. Easy concessions to give away
D. Of no real interest
16 . Which of the following represents an ideal negotiating environment?

A. Seating members of opposing negotiation teams alternatively so no two members of the same team are sat next to
each other
B. Meeting at a neutral venue that neither party is familiar with
C. The facility is quiet, secure and has access to breakout rooms
D. Agenda and timings are agreed on the day so neither team holds an unfair advantage
17 . Negotiations should always take place at your own site or facility

A. No, sometimes it is an advantage to negotiate at the other party's premises to assess their facilities
B. No, you should always negotiate on neutral territory
C, yes, negotiations should never be entered into on the other party's premises
D, yes, you should take every advantage to intimidate your opposition
18 . Which 2 of the following are advantages to adopting a team approach when negotiating with suppliers?
A. You are less likely to be intimidated
B. More catering will be available
C. Risk of procurement fraud reduces due to witnesses
D. The meeting can continue if you need to go to the toilet
E. If you don't achieve a satisfactory outcome to the negotiation, you can blame your team members
L4M5:
19 The ZOPA (Zone of Potential Agreement) helps both buyers and suppliers identify what?
a. the best value for money
b. each others walk-away-point
c. the cheapest deal
d. a contingency plan if an agreement cannot be reached
20. Which of the below would be an example of referent power according to French and Raven?
a. someone in power with qualifications
b. a good negotiator
c. a technical representative
d. a budget holder
21 Which of the below is an example of an indirect cost?

a. labour
b. raw materials
c. rent
d. software licence
22. what is the correct formula to work out Mark Up (%)?

a. price - cost / cost x 100
b. price - cost / price x 100
c. price / cost x 100
d. price / cost of sales x 100
23. The term 'getting peanuts' is best described by which type of tactical ploy during negotiations?
a. unexpected extras are added
b. pretending something that you need is not important
c. extracting concessions from the other party
d. procuring items at a very low price
24. which of the below is a form of none verbal communication during a meeting?
a. email
b. position of arms, hands and legs
c. a 'thank you for your hard work'
d. phone call to a supplier
25 In regard to Public Sector procurement, negotiation is more regulated. Which of the two procurement
a. Open Procedure
b. Restricted Procedure
c. Competitive Dialogue
d. Competitive Procedure with Negotiation
e. Innovation Partnerships
26 If a stakeholder has a high level of interest but a low level of influence, how should they be managed?

a. Too accommodating
b. Tends to focus on issues and not the people involved
c. Tends to neglect long term goals
d. Adopts rigid positions
29 What is the name of the conditioning technique often used by sellers to create an expectation of a higher price
through suggesting very high prices initially?
a. Flooring
b. Anchoring
c. Pitching
d. Tendering
30 The tone of someone’s voice is what type of communication?

e. Verbal
f. Non verbal
g. Active listening
h. Hypothetical
31 Smith & Sons is a large organisation that is spending a significant amount of money, there are plenty of competing
suppliers, the goods being supplied are easy to change and are not critical for operations, there is no need for a long
term relationship with supplier. Which conflict management style would be best suited to apply.
a Competing
b Accommodating
c Avoiding
d Compromising
32 Principled negotiation is based on 4 fundamentals. Thinking creatively regarding the benefits both parties get from
doing business refers to which principle?
a People
b Interests
c Options
d Criteria
33 Trust is a difficult concept to define and is often said it cannot be established unless it has been tested. Trust based
on the other party’s (TOP) professional qualifications or proven or certified technical capability or experience refers to
which of the following?
a Contractual Trust
b Competence Trust
c Goodwill Trust
d Accredited Trust
34 The buyer attractiveness model allows us to consider supplier perceptions regarding their customer segmentscross 2
key variable: customer spend and customer attractiveness. The resulting matrix produces four quadrants where
customers are classified. High spend and low attractiveness refers to which quadrant?
a Develop
b Core
c Nuisance
d Exploit
35 – In a situation where a Buyer needs to utilise their conflict management skills, by adopting an unassertive and un-
cooperative approach to the conflict, which type of style would this reflect?
A – Competing
B – Avoiding
C – Compromising
D – Accommodating
36 – Within a negotiating team, there are various roles and responsibilities which are involved, the person in the team
who is the spokesperson, and leads the negotiation meetings is known as?
A – Commercial Lead
B – Team Leader
C – Chief Negotiator
D – Technical Lead
37 – There are various pricing strategies which are used by suppliers, which of the following pricing strategies would be
most suited to a supplier which is attempting to enter a new market, or extend its share in an established one?
A – Cost-Plus Pricing
B – Premium Pricing
C – Market Pricing
D – Penetration Pricing
38 – Which of the following are considered weaknesses of a warm negotiating style?

A – Discloses information too readily
B – Can be inflexible
C – Tends to neglect detail
D – May focus too much on personal issues
39 – An individual-driven persuasion style in which the person seeking to influence another declares their own view/idea
in the expectation that it will be accepted and followed by the other, this is known as what type of persuasion style?
A – Directive (Push)
B – Collaborative (Pull)
C – Persuasive reasoning (Push)
D – Visionary (pull)
40 Which of the following is NOT a source of conflict?

A Directions to negotiation venue
B Lack of clarity before negotiation
C Team size & makeup
41 How many approaches are there to conflict resolution?

A3
B4
C5
42 How many costs are absorbed into direct costs?

A. 3
B. 2
C. 1
43 Indirect materials is an absorbed direct cost?

A. True
B. False
44 Testing stage is the first stage in a negotiation?

A. False
B. True
45 When do tactics work best?

A. If used frequently on an ad-hoc basis
B. If used sparingly as part of your plan
C. If never used at all
D. LM45
46 Which of the following is not a sign of breakdown of trust in business relationships
a Both sides accept the potential need to renegotiate terms when business conditions change
b Emotion-based assessments of performance
c Limited information and oversight for decision-making
d Frequent escalation, progress delayed
47 There are many macroeconomic factors that could influence procurement commercial negotiations. Which of
these is not a factor?
a Depreciation rates
b Interest rates
c Currency exchange rates
d Protectionism
48 – In negotiations, tactical ploys or gambits have two main objectives, to strengthen your perceived position in the
other party’s eyes and to influence the other party’s view of their own position. An example of a tactical ploy is to keep
repeating something, i.e the budgetary pressures you are under, to condition the other party to think you have no
money, this is known as what type of ploy?
A – Good cop/bad cop
B – Broken record
C – Thank and bank
D – lack of authority
A – Competing
B – Avoiding
C – Compromising
D – Accommodating
50– Within a negotiating team, there are various roles and responsibilities which are involved, the person in the team
B – Team Leader

53 – An individual-driven persuasion style in which the person seeking to influence another declares their own
view/idea in the expectation that it will be accepted and followed by the other, this is known as what type of persuasion
style?
B – Broken record
55 Which of the following is not a type of costing method?
A. 1 Absorption Costing
B. Marginal or variable costing
C. Activity – based costing
D. Overhead costing
56 In relation to absorption costing, which of these costs are not absorbed into direct costs.
A. 1 Overhead (indirect) costs relating to the manufacturing operation
B. Indirect Materials
C. Direct Materials
D. Direct Labour
57 Activity based costing is based on

A. 1 Usage
B. Time
C. Deliver costs
D. Labour
58 Which of the following is not a type of pricing strategy used by suppliers.

A. 1 Cost plus pricing
B. Superior Pricing
C. Premium Pricing
D. Penetration Pricing
59 Cost plus pricing is
A. 1 where the supplier is determined to charge a very high price, not connected with cost structures.
B. characterised by price reductions to increase volume, followed by steady price increases
C. The supplier recovers only the variable cost elements in its price.
D. where supplier calculates total variable and fixed costs and adds a percentage.
60 Which of the following is not considered when looking at microeconomics

A. 1 The factors that affect individual economic choices
B. The effect of changes in these factors on the individual decision makers
C. How their choices affect and are affected by decision makers
D. How prices and demand are determined in individual markets
This is mock exam E for CIPS L4M5 Commercial Negotiation 2 hour maximum
1 Supply and demand is a key determinant of
A. 1 Price
B. Choice
C. Availability
D. Quality
2 The law of demand states that
A. 1 if the price of a normal good or service is reduced, people will buy more, and as the price increases, people will
buy less.
B. if the price of a normal good or service is increased, people will buy more, and as the price decreases, people
will buy less.
C. if the availability is increased, the price increases
D. if the availability is increased, the price remains the same
3 At equilibrium price in a market there will be,

A. 1 some shortages and no surpluses
B. some shortages and some surpluses
C. no shortages and some surpluses
D. no shortages and no surpluses
4 Macroeconomics is the study of factors that relate to the broad economy at the national, regional or global level.
Which of these is not a factor related to Macroeconomics?
A. 1 Protectionism
B. Employment rate
C. Inflation rate
D. Unemployment rate
5 Negotiation plans/strategies involve four key activities. Which of these is not one of these.
A. 1 Developing pricing strategies
B. Seeking to understand TOP’s objectives
C. Developing concession plans
D. Planning the resources and logistics required and agreeing team roles
6 Identifying many variables,

A. 1 increases the chance of the negotiation reaching deadlock
B. can cause problems during negotiations
C. lowers the chance of the negotiation reaching deadlock
D. can cause problems once negotiations are complete
7 A good trade is
A. 1 when you trade something that has a relatively low value to you but is valued by the other party
B. when you trade something that has a high value to you and is valued by the other party
C. when you trade something that is of no value to either party
D. when you trade something that high value to you but no value to the other party
8 The bargaining mix is the mix of variables that can be traded in a commercial negotiation situation. Which of the
following does not refer to the bargaining mix
A. 1 Having multiple variables allows you to package and repackage offers by mixing and changing variables.
B. You must set best and worst trading limits for each tradeable to ensure that you do not give away more than
you planned or are authorised to
C. The key in a negotiation is not to trade away anything that is of significant value to you. These tradeables are
often referred to as ‘must haves’
D. A good trade is when you trade something that has a high value to you and is valued by the other party
9 Which of the following is not a part of concession planning

A. 1 Easy concession to trade
B. Easy concession to win
C. Low value
D. Easy
10 Which of the following is not one of the four main negotiation styles
A. 1 Warm
B. Cold
C. Logic
D. Dealer
11 Friendly and accessible and a good listener are traits of which type of negotiation style?
A. 1 Warm
B. Tough
C. Logic
D. Dealer
12 In reference to negotiation styles, a dealer is

A. 1 a numbers person
B. a hard nosed negotiator
C. a trader who loves bargaining
D. a people person
13 Which of the following is not a weakness of a warm negotiator?

A. 1 Too accommodating
B. May focus too much on personal issues
C. Finds it difficult to deal with conflict
D. Gets angry quickly
14 In reference to negotiation styles, a tough negotiator is
A. 1 a numbers person
B. a hard nosed negotiator
C. a trader who loves bargaining
D. a people person
15 During the “Testing” stage of a negotiation, what type of question would be the best to help obtain
missing information?
1. Closed questions
2. Open questions
16 If a supplier working in the private sector has already submitted a tender response, at which stage in
the negotiation would there be an opportunity for them to improve on their initial offer?
a. Opening
b. Testing
c. Proposing
d. Bargaining
17 IF a procurement professional is in a negotiation meeting and has quickly achieved the targets they set
out prior to the meeting, what should they do?
a. Close the meeting
b. Continue with the meeting now focusing on negotiating on areas not previously targeted
c. Continue with the meeting going over the same points
d. Close the meeting but schedule another one to negotiate further on other areas
18 What is the name of the conditioning technique often used by sellers to create an expectation of a
higher price through suggesting very high prices initially?
a. Flooring
b. Anchoring
c. Pitching
d. Tendering
19 When waiting for attendees to the negotiation meeting and/or when walking with TOP to the meeting
room, should the procurement professional engage in small talk?
a. No – the use of silence will unnerve TOP
b. No – it is against the rules of negotiation to engage in small talk before or after the meeting
c. Yes – it helps to break the ice
d. Yes – but only if TOP start the small talk
20 Which two of the below are “push” methods
a. Directive
b. Collaborative
c. Reasoning
d. Visionary
21 Which two of the below are “pull” methods
a. Directive
b. Collaborative
c. Reasoning
d. Visionary
22 Which of the below relates to “push” methods?
a. Persuasion
b. Influence
23 Which of the below relates to “pull” methods?
a. Persuasion
b. Influence
24 If a procurement professional in a negotiation pretends something that they need is not important,
what tactical ploy are they using?
a. Thank and bank
b. Salami (one slice at a time)
c. Getting Peanuts
d. Add-on
25 If you wanted to generate a specific response from TOP, what style of question would you use?
a. Open
b. Closed
c. Probing
d. Hypothetical
a. Verbal
b. Non verbal
c. Active listening
d. Hypothetical
27 Which of the below would be helpful when preparing for egotiations where there are international
culture difference?
a. Kraljic matrix
b. Relationship spectrum
c. Hofstede’s insights
d. Porter’s 5 Forces
28 Which of the below terms is a measure of a person’s level of emotional intelligence and refers to a
person’s ability to perceive, control, evaluate and express emotions?
a. Emotional Quotient
b. Emotional Quantity
c. Emotional Quality
d. Emotional Quantitative
29 Which of the below is a definition of Interpersonal intelligence
a. Having positive self regard, being self aware and managing your behaviour effectively
b. Having a positive regard for others, being aware of others and managing your relationships
effectively
c. Having negative self regard, not being self aware not not managing your behaviour effectively
d. Having negative regard for others, not being aware of others and not managing your
relationships effectively
30 Which of the below is not a benefit of reflection?
a. It can be time consuming
b. Lessons can be learned regarding what tactics worked or did not work
c. Participants get an opportunity to air their thoughts openly with colleagues
d. The strengths and weaknesses of the negotiation strategy can be confirmed
31 If you negotiated alone you cannot reflect. Is this true or false?
a. True
b. False
32 What is the main purpose of reflecting and reviewing negotiations?
a. To highlight where the negotiator did a bad job
b. To identify opportunities for improvement and development
c. To highlight areas where TOP “won”
d. To identify opportunities to get more out of TOP
33 What is CIPS preferred approach to negotiation?
a. Win-lose
b. Win-win
c. Lose-win
d. Lose-lose
34 Which of the below would damage rather than protect a supplier relationship during negotiations?
a. Lying to TOP
b. Leaving open the option of future business
c. Not personalising criticisms
d. Respect confidentiality
35 . In Harry A. Mill's RESPECT mnemonic for the 7 steps to agreement, the R stands for what?
A. Ready Yourself
B. Realise Goals
C. Reduce Distractions
D. Reduce Competitivity
36 . What is 'Anchoring'
A. Becoming too weighed down by minute detail
B. Over promising and committing to too many concessions
C. Attaching too much weight to the first given price
D. Refusing to move from your initial position
37 . Which of the following is not one of the 4 styles of questioning?

A. Open Questions
B. Direct Questions
C. Probing Questions
D. Hypothetical Questions
38 . In the 1960s, Albert Mehrabian published research that indicated that the interpretation of what was being said was
divided between the words used, the tone used, and body language. According to his research, what percentage did the
words used account for?
A. 100%
B. 55%
C. 38%
D. 7%
39. EQ (Emotional Quotient) seeks to measure emotional intelligence (as IQ measures Intelligence Quotient). Which of
the following is not an ability that EQ seeks to measure?
A. Evaluating how others feel
B. Linguisting reasoning
C. Relating to others
D. Identifying emotions
40 In the conflict management styles what is the objective to yield?

A) Accommodating
B) Competing
C) Avoiding
D) Compromising
41 In a negotiating team which role Leads the negotiation meetings?

A) Team Leader
B) Commercial Lead
C) Chief Negotiator
D) Technical Lead
42 There are six sources of personal power.
A) True
B) False
43 How many steps are in the contract management cycle?
A) 9
B) 13
C) 12
D) 11
44 What is the 3rd Fundamental of Principled negotiation?
A) Interest
B) Options
C) People
D) Criteria
45 Advertising is considered a direct cost.
A) True
B) False
46 Which costs include Utilities such as Gas and Electric?
A) Variable costs
B) Semi-variable costs
C) Fixed costs
47 What structure has one producer in the market?
A) Monopoly
B) Oligopoly
C) Perfect Competition
48 In a negotiation what team role is in control of the agenda?
A) Leading Speaker
B) Chair
C) Experts
D) Analyst/observer
E) Secretary/ note taker
49 Macroeconomics is the study od the behaviour of individuals and businesses within the market.
A) True
B) False
50 Good Listeners almost always turn out to be better negotiators.
A) True
B) False
51 What question style do you use to start a conversation?
A) Probing Question
B) Opening question
C) Hypothetical question
D) Closed question
52 In Mehrabian’s formula what percentage of the information is communicated by the tone of your voice?
A) 55%
B) 38%
C) 7%
53 What push/pull style is a team-orientated one?
A) Collaborative
B) Directive
C) Visionary
D) Persuasive reasoning
54 In a negotiation you should put a marker down in the beginning.
A) True
B) False
55 Which of the following is NOT a source of conflict?
G. Directions to negotiation venue
H. Lack of clarity before negotiation
I. Team size & makeup
56 How many approaches are there to conflict resolution?

H. 3
I. 4
J. 5
57 How many parties are there in conflict?

I. 4
J. 3
K. 2
L. 1
58 Which of the below is an example of a tradeable?

H. Lead time
I. Type of transport used
J. Location of warehouse
K. Number of staff
59 What does PESTLE stand for?

G. Polite, economic, severe, technological, loyal, and environmental
H. Political, economic, social, technological, legal, and environmental
I. Political, economic, serial, technological, loyal, and environmental
J. Polite, ecological, social, technological, legal, and environmental
60 How many costs are absorbed into direct costs?

D. 3
E. 2
F. 1
This is mock exam G for CIPS L4M5 Commercial Negotiation 2 hour maximum
1 Indirect materials is an absorbed direct cost?

C. True
D. False

A. 4
B. 3
C. 2
D. 1
3 The supplier recovers only which marginal cost pricing?

A. Variable cost
B. Fixed cost
C. Marginal cost
D. Total cost
4 Which of the following is NOT a macroeconomic factor?

M. Inflation rate
N. Economic growth
O. Climate
P. Protectionism
5 Testing stage is the first stage in a negotiation?

C. False
D. True
6 When do tactics work best?

E. If used frequently on an ad-hoc basis
F. If used sparingly as part of your plan
G. If never used at all
7 What kind of answers do closed questions usually generate?

A. Non-specific answers
B. Closed answers
C. Specific answers
D. They are generally ignored
8 How many (expanded) dimensions did Professor Hofstede classify in national cultures?
A. 6
B. 5
C. 4
D. 3
9 Which of the following is a benefit of reflection?
A. You can forget about what just happened
B. It helps leaders get rid of weak staff
C. The strengths and weaknesses of negotiation strategy can be confirmed
D. It helps participants lose focus during the meeting
10 In the conflict management styles what is the objective is to Win?

E) Accommodating
F) Competing
G) Avoiding
H) Compromising
11 How many steps are in the contract management cycle?

E) 9
F) 13
G) 12
H) 11

Q. 4
R. 3
S. 2
T. 1
13 What does PESTLE stand for?

K. Polite, economic, severe, technological, loyal, and environmental
L. Political, economic, social, technological, legal, and environmental
M. Political, economic, serial, technological, loyal, and environmental
N. Polite, ecological, social, technological, legal, and environmental
14 There are six sources of personal power.

C) True
D) False
E)
15 What structure has one producer in the market?

A. Monopoly
B. Oligopoly
C. Perfect Competition
16 Which costs are not absorbed into direct costs .

a. Direct labour
b. Direct materials
c. Overhead (indirect) costs relating to the manufacturing operation
d. Advertising
17 The supplier recovers only which marginal cost pricing?

a) Variable cost
b) Fixed cost
c) Marginal cost
d) Total cost
18 Which of the following is a macroeconomic factor?

a) Inflation rate
b) Economic growth
c) Climate
d) Protectionism
e)
19 Which one below best describes Cost plus pricing?
a) The supplier calculates total variable and fixed costs and adds a percentage.
b) The supplier is determined to charge a very high price, not connected with cost structures.
c) Brand marketing is a prime driver of this approach.
d) This is seen when a supplier is attempting to enter a new market or extend its share in an
established one.
20 What push/pull style is a team-orientated one?

E) Collaborative
F) Directive
G) Visionary
H) Persuasive reasoning
21 What question style do you use to start a conversation?

E) Probing Question
F) Opening question
G) Hypothetical question
H) Closed question
22. Testing stage is the first stage in a negotiation?

E. False
F. True
23 .Which of the following is a benefit of reflection?

E. You can forget about what just happened
F. It helps leaders get rid of weak staff
G. The strengths and weaknesses of negotiation strategy can be confirmed
It helps participants lose focus during the meeting
24 Whilst leading a Contract Management negotiation, if the group you are meeting with cannot
come to an agreement – what would be the best strategy going forward?
a. As the lead, you make the decision on how to best proceed.
b. In order to keep the negotiation going – you give in to their demands
c. Seek the advice of a higher management to see what they would do
d. Give 5 minutes to allow everyone to absorb what has been said and then take a vote within the meeting to
allow all opinion to count.
25 When entering into a negotiation with a supplier, how should you prepare.
a) No need to prepare because we don’t know yet what the supplier is going to want to propose.
b) Speak with all internal stakeholders beforehand as to what their crucial requirements and use this as a basis
for your negotiations.
c) As the lead, make an intuitive decision yourself about what the requirements and stick to this firmly.
Afterall, it is your contract and therefore is reliant totally on you to make the right decision.
d) Let the internal stakeholders collaborate between themselves as to what is required and let them feed this
back to you. There is no point in you wasting time in collaboration talks when ultimately the requirement is
for these stakeholders.
26 As the Contract lead, you are wanting to meet with your internal stakeholders regularly but
are unable to get in everyone in the same place at the same. How do you proceed with this?
a) Ignore the requirements of the stakeholders who are unable to give their time to collaborating with you. I mean
you are the key player in all of this so you would think that it was vital for them to engage.
b) Allow that there will be times when it is not going to be possible to get everyone in the same place at the same
time. Afterall, it shouldn’t matter too much because I can get enough from those that are present and will have
plenty to work with.
c) See if there is a reason as to why some people can’t make it. Ask them would there be a better solution with
regards to the collaboration i.e. different times each week, conference calls, skype meetings etc.
d) Same place, same time weekly – no confusion then as to the when and where of the collaborations.
27 A supplier knows that the customer is only ever interested in price so is there anything else
that can persuade a customer that them (as a supplier) could be the best option?
a) Absolutely not, customers will always go for the lowest cost.
b) Work hard to have a stronger value strategy that is unique to your business that no one else offers. Transfer
your confidence that you hold the best solution.
c) Take the stance that you offer something that other suppliers do not therefore negotiations are not readily
needed because the customer cannot get what you are offering elsewhere.
d) Have a baseline price for the package you offer then work your negotiations around what can be removed from
the package if the customer is not needing certain scopes within this.
28 As a supplier, it is sometimes easy to think that the customer has all the power. Are there any
measures you can apply to ensure a more even balance of power?
a) No, at the end of the end of the day it is purely down to best price and that is what I need to provide to the
buyer to ensure I am a successful supplier.
b) Brainstorm all the reasons as to why the customer would be better off purchasing from yourself. Ask yourselves
the following questions and provide answers to: why do I have more power than I think, how’s the customers
power limited and why would the customer need to go with us?
c) Give the customer lower prices, provide additional services to ensure that the purchase sits with yourselves.
d) Explain to the customer that you really don’t see any alternative fort them to go elsewhere as they will not get
what you are offering because you are the best solution.
29 What are the main differences between Marginal Costing and Absorption Costing.
a) Not much really, it all comes down to the suppliers preferred method.
b) Marginal costing aims to calculate the whole cost including fixed overheads at the time of the costing.
c) Absorption costing is to include the overheads at a variable rate and apply these within the period the
manufacturing of supplies is taking place.
d) The main differences between the two costings is that Absorption costing will estimate the periodic cost to
include these at the time of the costing whereas Marginal costing will show these within each of the periods i.e.
the books on the preferred method of absorption costing will likely show a deficit within the first few periods
but over time will begin to balance as the costings per period will become lower due to having already impacted
whereas marginal costing will demonstrate a better picture at the start for overall cost but will steadily impact
each reporting period.
30 What is the difference between Activity based costing and Traditional Costing?
a) They both split the overheads equally between the individual items to ensure that all costings per item
incorporates a fair share of the overheads.
b) Activity based costing incorporates a percentage share of the costings due to the time of manufacturing per
item. So, say for instance a burger bar opens and is selling bottled drinks and burgers, little overhead costings
would be applied to the bottled drinks and they would be sold on as they were, the costing would be
incorporated to the burgers re: time and energy cost to have made this item.
c) The cheaper item absorbs more of the overhead percentage cost to deflect and reduce the total cost of the
more expensive – ensuring customers believe they got a bargain.
d) Traditional based costing incorporates a percentage share of the costings due to the time of manufacturing per
item. So, say for instance a burger bar opens and is selling bottled drinks and burgers, little overhead costings
would be applied to the bottled drinks and they would be sold on as they were, the costing would be
incorporated to the burgers re: time and energy cost to have made this item.
31 What are the advantages of using Cost based pricing?

a) Easy to calculate if you know the cost
b) This type of costing variably does not need to consider competition.
c) This type of costing is so easy to calculate and being so straight forward defines it must be the best way to cost.
d) The business is not required to have the incentive to control cost.
32 What are the disadvantages of using Cost based Pricing?
a) None, it is so easy to calculates therefore must be the best way to cost
b) Sales are lost if price is set above the price customers are willing to pay
c)None, managers can be confident each product is being sold at a profit.
d) Ignores the concept of Supply and demand and therefore ignores price elasticity.
33 In regard to Public Sector procurement, negotiation is more regulated. Which of the two procurement
f. Open Procedure
g. Restricted Procedure
h. Competitive Dialogue
i. Competitive Procedure with Negotiation
j. Innovation Partnerships
34 If a stakeholder has a high level of interest but a low level of influence, how should they be managed?
a. Too accommodating
b. Tends to focus on issues and not the people involved
c. Tends to neglect long term goals
d. Adopts rigid positions
37 What is the name of the conditioning technique often used by sellers to create an expectation of a higher price
through suggesting very high prices initially?
a. Flooring
b. Anchoring
c. Pitching
d. Tendering
a. Verbal
b. Non verbal
c. Active listening
d. Hypothetical
37 . In the contract management cycle. Which of the following is the earliest step?
A) Administration
B) Risk and resilience
C) Payments and incentives
D) Asset Management
38 . If a supplier viewed you as a low attractiveness but high spend. Which category would you be classed as?
A) Core
B) Exploit
C) Develop
D) Nuisance
39 . What is a weakness to a warm negotiating style?

A) Reaches Deadlock easy
B) Tends to neglect detail
C) Tends to neglect long term goals
D) Disclose information too easily
40 . Which of the following is a strength to the dealer negotiation style?

A) Listens to the other party
B) Patient
C) Precise
D) Desire to achieve
41 . What question styles would be used to get negotiations started?

A) Closed questions
B) Probing questions
C) Hypothetical questions
D) Open questions
42 . Body posture and movement is a type of?
A) Listening skills
B) Non-verbal communication
C) Verbal communication
43 In the Thomas Kilmann conflict model, what would an unassertive and co-operative stance lead to?
a) Collaborating
b) Accommodating
c) Avoiding
d) Competing
44 In stakeholder management, which attitude should be taken for stakeholders with low interest and high
influence?
a. Engage
b. Involve
c. Build awareness
d. Inform
45 Which of the following does not contribute to demand for a good or service?
a. Historic demand
b. Market price
c. Buyer income
d. Product necessity
46 What is elasticity?
a. How quickly markets can financially recover from slumps of demand
b. The CIPS standard of elastic band production
c. Products that have unstable supply
d. The responsiveness of change in demand after a product price change
47 Which of the following is a ‘Do Not’ of typical behaviours at the testing phase?
a. Asking questions to get missing information
b. Clarify Perceptions
c. Make firm proposals
d. Seek to identify common ground
48 Which of the following is NOT a way to improve listening skills in negotiations?
a. React to the person, not the message
b. Listen with a goal in mind
c. Be alert to non-verbal clues
d. Write everything down
A – Competing
B – Avoiding
C – Compromising
D – Accommodating
50– Within a negotiating team, there are various roles and responsibilities which are involved, the person in the team
B – Team Leader

53 – An individual-driven persuasion style in which the person seeking to influence another declares their own
view/idea in the expectation that it will be accepted and followed by the other, this is known as what type of persuasion
style?
B – Broken record
55 Which of the following is not a type of costing method?

E. 1 Absorption Costing
F. Marginal or variable costing
G. Activity – based costing
H. Overhead costing
56 In relation to absorption costing, which of these costs are not absorbed into direct costs.
E. 1 Overhead (indirect) costs relating to the manufacturing operation
F. Indirect Materials
G. Direct Materials
H. Direct Labour
57 Activity based costing is based on

E. 1 Usage
F. Time
G. Deliver costs
H. Labour
58 Which of the following is not a type of pricing strategy used by suppliers.
E. 1 Cost plus pricing
F. Superior Pricing
G. Premium Pricing
H. Penetration Pricing
59 Cost plus pricing is

E. 1 where the supplier is determined to charge a very high price, not connected with cost structures.
F. characterised by price reductions to increase volume, followed by steady price increases
G. The supplier recovers only the variable cost elements in its price.
H. where supplier calculates total variable and fixed costs and adds a percentage.
60 Which of the following is not considered when looking at microeconomics

E. 1 The factors that affect individual economic choices
F. The effect of changes in these factors on the individual decision makers
G. How their choices affect and are affected by decision makers
H. How prices and demand are determined in individual markets

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This is mock exam A for CIPS L4M5 Commercial Negotiation 2 hour maximum

1. Is it possible to achieve a successful outcome to negotiation without preparation?

2. Should negotiations always be entered into.?

6. A win-lose or competing approach to negotiation can also be called

9. in which of the following would negotiation be a waste of time?

13, what do the two E's in PESTLE stand for?

15, standardisation and harmonization of an organisation's specifications can lead to

22, exclusivity of supply is always a good thing for the supplier?

23, which of the below is considered to be added value?

25, which of the below is not a 'source of power'?

26, What does the 'E' stand for in PEST analysis?

44. What is a BATNA?

A. A demonstration of purchasing power

54. The relationship spectrum is based on the idea of:

57. Overheads are also known as

59. To be able to achieve the break even point

7. Which of the following is not a factor that supports a successful negotiation?

10. What is the walk-away position?

12. Which is an example of a semi-variable cost?

14. What is absorbtion costing?

15. What does protectionism do and cause?

17. Which of the below would be classified as a direct cost?

18. what is one of the main driver of 'premium pricing'?

19. what do marginal costings focus on?

20. how is cost plus pricing calculated?

21. what is a 'market price'?

22. what is the equlibrium price showing?

23 what is an inflation rate?

25. which of the below is a key macroeconomic factor?

28. what does the acrynom ZOPA stand for?

36 Which of these are not one of the key phases of negotiation?

37 relation to phases of negotiation what does ZOPA stand for

38 By the end of the opening stage you should

39 At what stage in negotiation do parties trade concessions?

41 When looking at persuasion methods, persuasion refers to

42 A Collaborative style refers to

44 With regards to tactics, which of these statements is false.

45 The Salami tactic refers to

46 Which of the following are not uses of questioning in negotiation?

47 Which of these is not a type of questioning style in negotiation?

51 In negotiation, reflection refers to

52 Which of these is not a benefit of reflection?

53 Which of these is an assertive/co-operative conflict management style?

58 Which of these is not a type of pricing

60 Which of these is not a microeconomic factor?

5 Which of the following would be a characteristic of a Distributive approach to a negotiation?

6 Which of the following best describes the 'Zone of Potential Agreement'?

10- Which of the following is not a determinant of supply?

16 - Which of the following would international cultural differences not be as important:

A - A small value one off purchase from a foreign supplier

18 In they key phases of negotiation, which is the second step?

19 at which stage of negotiations are both parties likely to trade concessions?

20 at the agreement and closing stage of a negotiation, is a deal always made?

A. start the conditioning process

A. the situation involves a safety or security critical issue or a strict deadline

A. research has identified a best answer

25 the tactical ploy 'salami' refers to which of the below?

A. bringing together the facts of the problem to test understanding

31 which of the below is a non-verbal communication technique?

A. individualism versus collectivism

34 what is the main aim of reflection on a negotiation?

A. to better understand they key objectives of the other party

A. did we present well with confidence?