Exam L4M5 Topic 1 Question 214 Discussion

Actual exam question for CIPS's L4M5 exam
Question #: 214
Topic #: 1
The only procurement risk inherent in a distributive negotiation approach is the potential loss in the outcome.
Is this statement TRUE?

Suggested Answer: D Vote an answer

Distributive negotiation carries several risks beyond justlosing out on value. These includedamaging supplier relationships,eroding trust, andreaching an impasse, where neither party can agree. This could result in delayed projects, increased costs, or supplier withdrawal.
"Distributive negotiation can lead to a breakdown in communication, impasses, and long-term relationship damage. The win-lose mindset can prevent collaborative problem-solving." (L4M5 Commercial Negotiation, 2nd edition, Section 3.5 - Risks of Distributive Approaches)

by Kim at Apr 19, 2026, 06:37 AM

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