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CIPS
CIPS Level 5 Advanced Diploma in Procurement and Supply
L5M15
Advanced Negotiation Questions and Answers

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Questions # 21:

In which circumstances may a buyer suggest that a negotiation meeting be held at thesupplier’s premises?

Options:

To ensure the supplier has the advantage

To ensure the buyer has the advantage

To allow the buyer to find out more about the supplier

To ensure negotiations run smoothly

Answer

Explanation

Holding a meeting at thesupplier’s siteallows the buyer to gain insights into the supplier’s capacity, infrastructure, culture, and quality systems. This firsthand observation strengthens understanding and informs negotiation strategy.

[Reference:CIPS L5M15 –Negotiation Preparation and Venue Selection (Domain 1.1)., ]

Questions # 22:

The “Pinocchio Effect” looks at which characteristic during a negotiation?

Options:

Childishness

Ploys and tactics

Honesty

Stability

Answer

Explanation

The “Pinocchio Effect” refers to identifying deception cues during negotiation—named after the fictional character whose nose grew when he lied. It explores body language and behavioural indicators of dishonesty.

[Reference:CIPS L5M15 –Non-Verbal Communication and Truthfulness in Negotiation., ]

Questions # 23:

Which of the following isnota base of power?

Options:

Informational

Legitimate

Referent

Financial

Answer

Explanation

The six recognisedbases of powerare informational, legitimate, referent, coercive, reward, and expert. Financial power is not classified separately—it can fall under reward or resource power, but not as a formal category.

[Reference:CIPS L5M15 –Power in Negotiation (French & Raven’s Six Bases) (Domain 3.1)., ]

Questions # 24:

Bob is preparing for a negotiation with an important potential business partner. His approach is to devise options for mutual gain before deciding what to do. Which approach to negotiation is Bob taking?

Options:

Positional

Principled

Playing hard to get

Hardball

Answer

Explanation

“Principled negotiation” (sometimes called the Harvard method) is built on four pillars: (1) separate people from the problem; (2) focus on interests, not positions; (3) generate options for mutual gain; and (4) use objective criteria. Bob’s focus on creating options for mutual gain signals the principled approach.

[Reference:CIPS Level 5, L5M15 – Topic: Approaches to Negotiation (Principled/Interest-based Negotiation)., ]

Questions # 25:

Sarah is a procurement manager who used a win–lose stance and deceptive techniques to reach her goals. Which consequences may follow?Select TWO

Options:

Sarah achieved all of her objectives

The approach may damage the long-term relationship

The supplier will have more respect for Sarah

The contract may be rendered void

Answer

B, D

Explanation

Deceptive conduct candamage relationshipsand may expose the agreement torescission for misrepresentation(fraudulent/neglectful untrue statements of fact), potentially rendering the contract voidable. We cannot infer she achieved all objectives or gained respect.

[Reference:CIPS L5M15 — Integrity, Misrepresentation & Consequences in Negotiation (Domain 2.1)., ]

Questions # 26:

Using praise or flattery in a negotiation is the use of which of the following tactics?

Options:

Ingratiation

Exchange

Personal appeal

Collaboration

Answer

Explanation

Ingratiationinvolves using flattery, praise, or friendliness to increase likability and influence. It’s a soft tactic often used to build rapport and reduce resistance before discussing substantive issues.

[Reference:CIPS L5M15 –Soft Tactics and Relationship Building (Domain 3.1)., ]

Questions # 27:

A combination of which two behaviours fails to establish effective buyer–supplier relationships and can lead to aggressive negotiation tactics?

Options:

Warm

Cold

Tough

Soft

Answer

B, C

Explanation

Acold(detached) andtough(adversarial) style discourages collaboration and may escalate conflict. CIPS categorises influencing behaviour across two dimensions—warm vs cold and tough vs soft—with “cold and tough” seen as destructive.

[Reference:CIPS L5M15 –Influencing Behaviour Grid (Warm/Cold vs Tough/Soft, Domain 1.2)., ]

Questions # 28:

Haggling and coercive behaviour can lead to a win–win outcome in a negotiation. Is this true?

Options:

Yes – both parties achieve their objectives.

Yes – this is the most effective way to ensure a win–win outcome.

No – a win–win outcome requires both parties to achieve their objectives through a value-creating approach.

No – haggling and coercive behaviour can only lead to a lose–lose outcome.

Answer

Explanation

A true win–win outcome arises when negotiators expand value and align interests so both sides achieve key objectives. Coercion/hard haggling is typically distributive and value-claiming, whichrisks damaging trust and typically does not create the integrative trades needed for win–win agreements.

[Reference:CIPS Level 5, L5M15 – Topic: Win–Win vs Win–Lose; Value Creation vs Value Claiming., ]

Questions # 29:

Which of the following is a disadvantage of apositionalapproach to negotiation?Select TWO.

Options:

It allows for little flexibility.

It allows the other party to know what you wish to achieve.

It always leads to a win–lose outcome.

Individuals can become rigid and entrenched.

Answer

A, D

Explanation

Positional bargaining starts with fixed opening stances and trades concessions from those stances. This often reduces flexibility and can make participants defensive or entrenched, inhibiting creativity and joint problem-solving.

[Reference:CIPS L5M15 – Approaches to negotiation: Positional vs Principled., ]

Questions # 30:

In anexploitative authoritativeform of management, which of the following is true?

Options:

Motivation is based on threats and decisions are imposed on subordinates.

Motivation is based on rewards and communication is limited.

Leadership involves trust and teamwork.

Responsibility is shared throughout the hierarchy.

Answer

Explanation

Underexploitative authoritativemanagement (Rensis Likert model), leaders rely onfear and punishmentto control subordinates. Communication is top-down and trust is minimal—contrasting with participative or consultative styles.

[Reference:CIPS L5M15 –Leadership Models and Motivation (Domain 3.2)., ]

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