CIPS L5M1 ADVANCED NEGOTIATION
STUDY GUIDE 2026 ACTUAL QUESTIONS
WITH ANSWERS GRADED A+
⩥ RAQSCI model. Answer: used for identifying business requirements
(what to buy)
Regulatory - any legal requirements
Assurance of supply - availability of products or services
Quality - The consistency and fit for purposness of the goods you
procure
Service
Cost
Innovation
⩥ Partnership. Answer: a legal form of business that is owned by two or
more individuals
⩥ Capital. Answer: The amount of money or assets available to be
leveraged by a person or organization, eg when starting a company or
buying an asset.
⩥ SME. Answer: Small and medium sized enterprise - To be classified
as an SME, a company must not be a subsidiary of another company.
, ⩥ Economy of Scale. Answer: things get cheaper as you make more of
them
⩥ Depreciation charge. Answer: the amount of money by which annual
accounts are adjusted to reflect the cost of a reduction in the value of
assets. The money is put aside to purchase a replacement for the asset at
a future date.
⩥ Dividend. Answer: money paid from the company's earnings to the
shareholder.
⩥ Accruals. Answer: An adjustment made to the accounts of a company
that has the effect of putting aside money for future use.
⩥ Value chain model. Answer: Shows how orgs in the private sector earn
profit - Made up of primary and secondary activities
Primary - inbound/outbound logistics, market, sales, services
Secondary - HR, tech, procurement
⩥ Need analysis. Answer: operations determining future and current
needs of org for products and services
⩥ Channel. Answer: The way products and services get to the customer
STUDY GUIDE 2026 ACTUAL QUESTIONS
WITH ANSWERS GRADED A+
⩥ RAQSCI model. Answer: used for identifying business requirements
(what to buy)
Regulatory - any legal requirements
Assurance of supply - availability of products or services
Quality - The consistency and fit for purposness of the goods you
procure
Service
Cost
Innovation
⩥ Partnership. Answer: a legal form of business that is owned by two or
more individuals
⩥ Capital. Answer: The amount of money or assets available to be
leveraged by a person or organization, eg when starting a company or
buying an asset.
⩥ SME. Answer: Small and medium sized enterprise - To be classified
as an SME, a company must not be a subsidiary of another company.
, ⩥ Economy of Scale. Answer: things get cheaper as you make more of
them
⩥ Depreciation charge. Answer: the amount of money by which annual
accounts are adjusted to reflect the cost of a reduction in the value of
assets. The money is put aside to purchase a replacement for the asset at
a future date.
⩥ Dividend. Answer: money paid from the company's earnings to the
shareholder.
⩥ Accruals. Answer: An adjustment made to the accounts of a company
that has the effect of putting aside money for future use.
⩥ Value chain model. Answer: Shows how orgs in the private sector earn
profit - Made up of primary and secondary activities
Primary - inbound/outbound logistics, market, sales, services
Secondary - HR, tech, procurement
⩥ Need analysis. Answer: operations determining future and current
needs of org for products and services
⩥ Channel. Answer: The way products and services get to the customer
