Important CIPS L4M5 Exam Questions

Answer: B

Explanation:

Trust is built through consistent communication (e.g., regular meetings) and fulfilling commitments (keeping promises). Coercion erodes trust, while mediation is reactive and not a foundational element of trust-building.

Answer: B

Explanation:

Elasticity refers to the responsiveness of quantity demanded or quantity supplied to a change in price or another factor.

In microeconomic graphs, elasticity and inelasticity can be shown by the slope of the demand curve. If a demand curve is almost horizontal, then the product pricing can be described as very elastic. If a demand curve is almost vertical, then the product pricing can be described as very inelastic.

The formulae of elasticity:

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LO 2, AC 2.2

Answer: B

Explanation:

Effective listeners demonstrate empathy and use paraphrasing to confirm understanding. These skills help build rapport, validate the speaker, and ensure accurate interpretation. Persuading and immediate solutions are active interventions, not listening behaviours. CIPS emphasises active listening as central to persuasion and relationship building in negotiation, enabling buyers to uncover underlying interests and respond appropriately.

Answer: D

Explanation:

While compromise seems fair, it often erodes credibility and weakens long-term negotiation outcomes. Skilled negotiators avoid ''splitting the difference'' automatically, since it signals weak preparation and can encourage exploitation in future talks. Instead, agreements should be built on objective value, data, and tradeables. Compromise has a place, but reliance on it damages strategic positioning. CIPS stresses integrative or principled negotiation over simplistic middle-ground settlements.

Answer: B

Explanation:

CIPS describes a relationship spectrum from arm's-length/transactional through collaborative/partnership, matched to spend criticality, risk, and strategic importance; analysis helps select the appropriate relationship style before and during negotiation.

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