Negotiation All Chapters with T/F

Which perspective can be used to understand different aspects of negotiation?

A) economics

B) psychology

C) anthropology

D) law

E) All of the above perspectives can be used to understand different aspects of negotiation.

E

42. To most people the words "bargaining" and "negotiation" are

A) mutually exclusive.

B) interchangeable.

C) not related.

D) interdependent.

E) None of the above.

B

A situation in which solutions exist so that both parties are trying to find a mutually acceptable solution to a complex conflict is known as which of the following?

A) mutual gains

B) win-lose

C) zero-sum

D) win-win

E) None of the above.

D

44. Which is not a characteristic of a negotiation or bargaining situation?

A) conflict between parties

B) two or more parties involved

C) an established set of rules

D) a voluntary process

E) None of the above is a characteristic of a negotiation.

C

45. Tangible factors

A) include the price and terms of agreement.

B) are psychological motivations that influence the negotiations.

C) include the need to look good in negotiations.

D) cannot be measured in quantifiable terms.

E) None of the above statements describe tangible factors.

A

46. Which of the following is not an intangible factor in a negotiation?

A) the need to look good

B) final agreed price on a contract

C) the desire to book more business

D) fear of setting a precedent

E) All of the above are intangible factors.

B

47. Interdependent parties' relationships are characterized by

A) interlocking goals.

B) solitary decision making.

C) established procedures.

D) rigid structures.

E) Interdependent relationships are characterized by all of the above.

A

48. A zero-sum situation is also known by another name of a situation. Which of the following is that?

A) integrative

B) distributive

C) win-lose

D) negotiative

E) None of the above.

B

49. BATNA stands for

A) best alternative to a negotiated agreement.

B) best assignment to a negotiated agreement.

C) best alternative to a negative agreement.

D) best alternative to a negative assignment.

E) BATNA stands for none of the above.

A

50. What are the two dilemmas of negotiation?

A) the dilemma of cost and the dilemma of profit margin

B) the dilemma of honesty and the dilemma of profit margin

C) the dilemma of trust and the dilemma of cost

D) the dilemma of honesty and the dilemma of trust

E) None of the above.

D

51. How much to believe of what the other party tells you

A) depends on the reputation of the other party.

B) is affected by the circumstances of the negotiation.

C) is related to how he or she treated you in the past.

D) is the dilemma of trust.

E) All of the above.

E

52. Satisfaction with a negotiation is determined by

A) the process through which an agreement is reached and the dollar value of concessions made by each party.

B) the actual outcome obtained by the negotiation as compared to the initial bargaining positions of the negotiators.

C) the process through which an agreement is reached and by the actual outcome obtained by the negotiation.

D) the total dollar value of concessions made by each party.

E) Satisfaction with a negotiation is determined by none of the above.

C

53. Which of the following statements about conflict is true?

A) Conflict is the result of tangible factors.

B) Conflict can occur when two parties are working toward the same goal and generally want the same outcome.

C) Conflict only occurs when both parties want a very different settlement.

D) Conflict has a minimal effect on interdependent relationships.

E) All of the above statements about conflict are true.

B

54. In intragroup conflict,

A) sources of conflict can include ideas, thoughts, emotions, values, predispositions, or drives that are in conflict with each other.

B) conflict occurs between individual people.

C) conflict affects the ability of the group to resolve differences and continue to achieve its goals effectively.

D) conflict is quite intricate because of the large number of people involved and possible interactions between them.

E) None of the above describes intragroup conflict.

C

55. Which of the following contribute to conflict's destructive image?

A) increased communication

B) misperception and bias

C) clarifying issues

D) minimized differences; magnified similarities

E) All of the above contribute to conflict's destructive image.

B

56. In the Dual Concerns Model, the level of concern for the individual's own outcomes and the level of concern for the other's outcomes are referred to as the

A) cooperativeness dimension and the competitiveness dimension.

B) the assertiveness dimension and the competitiveness dimension.

C) the competitiveness dimension and the aggressiveness dimension.

D) the cooperativeness dimension and the assertiveness dimension.

E) None of the above.

D

57. An individual who pursues his or her own outcomes strongly and shows little concern for whether the other party obtains his or her desired outcomes is using another of the following strategies. Which one?

A) yielding

B) compromising

C) contending

D) problem solving

E) None of the above.

C

58. Negotiators pursuing the yielding strategy

A) show little interest or concern in whether they attain their own outcomes, but are quite interested in whether the other party attains his or her outcomes.

B) pursue their own outcome strongly and shows little concern for whether the other party obtains his or her desired outcome.

C) shows little interest or concern in whether they attain their own outcomes, and does not show much concern about whether the other party obtains his or her outcomes.

D) show high concern for attaining their own outcomes and high concern for whether the other attains his or her outcomes.

E) Negotiators pursuing the yielding strategy demonstrate none of the above behaviors.

A

59. Parties pursuing one of the following strategies show little interest or concern in whether they attain their own outcomes, and do not show much concern about whether the other party obtains his or her outcomes. Which of the ones listed below?

A) contending

B) compromising

C) problem solving

D) yielding

E) None of the above.

E

60. Whereas distributive bargaining is often characterized by mistrust and suspicion, integrative negotiation is characterized by which of the following?

A) obligation and perseverance

B) avoidance and compromise

C) influence and persuasiveness

D) trust and openness

E) cognition and emotion

D

Negotiation is a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby

F

Many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur after the parties have negotiated.

F

Negotiation situations have fundamentally the same characteristics,

T

A creative negotiation that meets the objectives of all sides may not require compromise.

T

The parties prefer to negotiate and search for agreement rather than to fight openly, have one side dominate and the other capitulate, permanently break off contact, or take their dispute to a higher authority to resolve it

T

It is possible to ignore intangibles, because they affect our judgment about what is fair, or right, or appropriate in the resolution of the tangibles.

F

In any industry in which repeat business is done with the same parties, there is always a balance between pushing the limit on any particular negotiation and making sure the other party—and your relationship with him—survives intact.

T

When the goals of two or more people are interconnected so that only one can achieve the goal—such as running a race in which there will be only one winner—this is a competitive situation, also known as a non-zero-sum or distributive situation

F

Remember that every possible interdependency has an alternative; negotiators can always say "no" and walk away.

T

A zero-sum situation is a situation in which individuals are so linked together that there is a positive correlation between their goal attainments.

F

The value of a person's BATNA is always relative to the possible settlements available in the current negotiation, and the possibilities within a given negotiation are heavily influenced by the nature of the interdependence between the parties.

T

The effective negotiator needs to understand how people will adjust and readjust, and how the negotiations might twist and turn, based on one's own moves and the others' responses.

T

The pattern of give-and-take in negotiation is a characteristic exclusive to formal negotiations.

F

In contrast, non-zero-sum or integrative or mutual gains situations are ones where many people can achieve their goals and objectives.

T

Negotiators do not have to be versatile in their comfort and use of both major strategic approaches to be successful.

F

Differences in time preferences have the potential to create value in a negotiation.

T

Conflict doesn't usually occur when the two parties are working toward the same goal and generally want the same outcome.

F

Intragroup conflict occurs between groups.

F

Negotiation is a strategy for productively managing conflict.

T

The dual concerns model has two dimensions: the vertical dimension is often referred to as the cooperativeness dimension, and the horizontal dimension as the assertiveness dimension.

T

51. Distributive bargaining strategies

A) are the most efficient negotiating strategies to use.

B) are used in all interdependent relationships.

C) are useful in maintaining long term relationships.

D) can cause negotiators to ignore what the parties have in common.

E) None of the above describes distributive bargaining strategies.

D

52. The target point is the

A) point at which a negotiator would like to conclude negotiations.

B) negotiator's bottom line.

C) first offer a negotiator quotes to his opponent.

D) initial price set by the seller.

E) None of the above describes the target point.

A

53. Starting points

A) are usually contained in the opening statements each negotiator makes.

B) are usually learned or inferred as negotiations get under way.

C) are not known to the other party.

D) are given up as concessions are made.

E) None of the above describes starting points.

A

54. The objective of both parties in distributive bargaining is to obtain as much of which of the following as possible?

A) bargaining range

B) resistance point

C) target point

D) bargaining mix

E) None of the above.

A

55. The resistance point is established by the ____________ expected from a particular outcome, which is in turn the product of the ____________ and ____________ of an outcome.

A) cost, value, worth

B) value, worth, cost

C) value, cost and timeliness

D) cost, importance, value

E) None of the above.

B

56. The more you can convince the other party that your costs of delay or aborting negotiations are

____________, the more modest will be the other's resistance point.

A) high

B) modest

C) extreme

D) low

E) None of the above.

D

57. The more you can convince the other that you value a particular outcome outside the other's bargaining range, the more pressure you put on the other party to set by one of the following resistance points.

A) high

B) low

C) modest

D) extreme

E) None of the above.

C

58. A large majority of agreements in distributive bargaining are reached when the deadline is

A) near.

B) flexible.

C) past.

D) undefined.

E) None of the above.

A

59. Disruptive action tactics can cause

A) embarrassment.

B) increased costs.

C) anger.

D) escalation of conflict.

E) Disruptive action tactics can cause all of the above.

E

60. The opening stance is

A) another name for the first round of concessions.

B) the first price that a buyer quotes to a seller.

C) the attitude to adopt during the negotiation.

D) a package of concessions.

E) All of the above describe the opening stance.

C

61. The bargaining range is defined by

A) the opening stance and the initial concession.

B) the initial round of concessions.

C) the bargaining mix and the opening stance.

D) the opening offer and the counteroffer.

E) The bargaining range is defined by all of the above.

D

62. What action can be taken after the first round of offers?

A) hold firm

B) insist on the original position

C) make some concessions

D) make no concessions

E) All of the above.

E

63. Good distributive bargainers will

A) begin negotiations with the other party with an opening offer close to their own resistance point.

B) ensure that there is enough room in the bargaining range to make some concessions.

C) accept an offer that is presented as a fait accompli.

D) immediately identify the other party's target point.

E) All of the above are actions that good distributive bargainers will take.

B

64. Parties feel better about a settlement when negotiations involve a(n)

A) immediate settlement.

B) single round of concessions.

C) progression of concessions.

D) fait accompli.

E) All of the above.

C

65. What statement about concessions is false?

A) Concessions are central to negotiations.

B) Concessions is another word for adjustments in position.

C) Concession making exposes the concession maker to some risk.

D) Reciprocating concessions is a haphazard process.

E) All of the above statements are true.

D

66. Concession making

A) indicates an acknowledgment of the other party.

B) shows a movement toward the other's position.

C) implies a recognition of the legitimacy of the other party's position.

D) recognizes the other party's position.

E) All of the above are characteristics of concession making.

E

67. When successive concessions get smaller, the most obvious message is that

A) the negotiator is reaching the fatigue point.

B) the resistance point is being reached.

C) the concession maker's position is weakening.

D) the negotiator has passed the resistance point.

E) None of the above.

B

68. Skilled negotiators may

A) suggest different forms of a potential settlement that are worth about the same to them.

B) recognize that not all issues are worth the same amount to both parties.

C) frequently save a final small concession for near the end of the negotiation to "sweeten" the deal.

D) make the last concession substantial to indicate that "this is the last offer".

E) Skilled negotiators may take all of the above actions.

E

69. A commitment

A) should not be interpreted as a threat.

B) postpones the threat of future action.

C) is designed to increase both parties' choices to a portfolio of options.

D) removes ambiguity about the actor's intended course of action.

E) All of the above.

D

70. A commitment statement should have a

A) low degree of finality.

B) high degree of specificity.

C) an indefinite statement of consequences.

D) a high degree of emotionality.

E) None of the above should be included in a commitment statement.

B

71. Negotiators who make threats

A) are perceived as more powerful than negotiators who do not use threats.

B) receive higher outcomes than negotiators who do not use threats.

C) are perceived as more cooperative in distributive negotiations.

D) should use detailed, complex statements of demands, conditions and consequences.

E) All of the above describe negotiators who make threats.

A

72. To prevent the other party from establishing a committed position, a negotiator could

A) give them the opportunity to evaluate the matter fully.

B) acknowledge the other's commitment.

C) reiterate the commitment.

D) make a joke about the commitment.

E) None of the above should be used to prevent the other party from establishing a committed position.

D

73. Hardball tactics are designed to

A) be used primarily against powerful negotiators.

B) clarify the user's adherence to a distributive bargaining approach.

C) pressure targeted parties to do things they would not otherwise do.

D) eliminate risk for the person using the tactic.

E) Hardball tactics are designed to accomplish all of the above.

C

74. Aggressive behavior tactics include

A) the relentless push for further concessions.

B) asking for the best offer early in negotiations.

C) asking the other party to explain and justify their proposals item by item.

D) forcing the other side to make many concessions to reach an agreement.

E) Aggressive behavior tactics include all of the above.

E

75. The negotiator's basic strategy is to

A) get information about the opposition and its positions.

B) reach the final settlement as close to the other's resistance point as possible.

C) convince members of the other party to change their minds about their ability to achieve their own goals.

D) promote his or her own objectives as desirable, necessary, and inevitable.

E) All of the above.

B

Distributive bargaining strategies are the only strategies that are effective in interdependent situations.

F

Distributive bargaining strategies and tactics are useful when a negotiator wants to maximize the value obtained in a single deal.

T

The resistance point is the point at which a negotiator would like to conclude negotiations.

F

Each party's resistance point is openly stated at the conclusion of negotiations.

F

Anything outside the bargaining range will be summarily rejected by one of the negotiators.

T

A negative bargaining range occurs when the buyer's resistance point is above the seller's.

F

Negotiations with a positive settlement range are obvious from the beginning.

F

A resistance point will be influenced by the cost an individual attaches to delay or difficulty in negotiation.

T

The more you can do to convince the other party that his or her costs of delay or aborting negotiations will be costly, the more likely he or she will be to establish a modest resistance point.

T

The first step for a negotiator completing a distributive bargaining negotiation is to obtain information about the other party's outcome values and resistance points.

F

In "calculated incompetence," the negotiator is intentionally given false or misleading information to reveal to the other party.

F

Selective presentation can be used to lead the other party to form the desired impression of your resistance point or to open up new possibilities for agreement that are more favorable to the presenter than those that currently exist.

T

Studies indicate that negotiators who make low or modest opening offers get higher settlements than do those who make extreme opening offers.

F

Parties feel better about a settlement when negotiations involve a progression of concessions.

T

If a major concession has been made on a significant point, it is expected that the return offer will be on the same item or one of similar weight and comparable magnitude.

T

A small concession late in negotiations may indicate that there is little room left to move.

T

It is important to signal to the other party with either behavior or words that the concessions are almost over.

F

One way negotiators may convey the message that "this is the last offer" is by making the last concession substantial.

T

A public commitment statement means that the wider the audience, the less likely the commitment will be changed.

T

All the advantages of a committed position work against a negotiator when the other party becomes committed, so it is important to try to prevent the other negotiator from becoming committed.

T

Hardball tactics work most effectively against powerful, well-prepared negotiators.

F

Hardball tactics are infallible if used properly.

F

To respond to hardball tactics, a negotiator must identify the tactic quickly and understand what it is and how it works.

T

The best response to the chicken tactic is to challenge the other party by responding with one's own chicken tactic, thereby calling the other's bluff.

F

An effective means of countering the intimidation tactic is to ignore it.

T

51. Which of the following is not an element of integrative negotiations?

A) a focus on commonalties

B) an attempt to address positions

C) a required exchange of information and ideas

D) the use of objective criteria for standards of performance

E) All of the above are elements of integrative negotiations.

B

55. Which of the following processes is central to achieving almost all integrative agreements?

A) moderating the free flow of information to ensure that each party's position is accurately stated

B) exchanging information about each party's position on key issues

C) emphasizing the commonalties between the parties

D) searching for solutions that maximize the substantive outcome for both parties

E) All of the above processes are central to achieving integrative agreements.

C

53. Which of the following is a major step in the integrative negotiation process?

A) identifying and defining the problem

B) understanding the problem and bringing interests and needs to the surface

C) generating alternative solutions to the problem

D) choosing a specific solution

E) All of the above are major steps in the integrative negotiation process.

E

54. In which major step of the integrative negotiation process of identifying and defining the problem would you likely find that if the problem is complex and multifaceted the parties may not even be able to agree on a statement of the problem?

A) define the problem in a way that is mutually acceptable to both sides.

B) state the problem with an eye toward practicality and comprehensiveness.

C) state the problem as a goal and identify the obstacles to attaining this goal.

D) depersonalizing the problem.

E) separate the problem definition from the search for solutions.

B

56. An interest is instrumental if

A) the parties value it because it helps them derive other outcomes in the future.

B) the parties value the interest in and of itself.

C) it relates to "tangible issues" or the focal issues under negotiation.

D) the relationship is valued for both its existence and for the pleasure that sustaining the relationship creates.

E) All of the above relate to instrumental interests.

B

56. Substantive interests

A) are the interests that relate to the focal issues under negotiation.

B) are related to the way we settle the dispute.

C) mean that one or both parties value their relationship with each other and do not want to take actions that will damage the relationship.

D) regard what is fair, what is right, what is acceptable, what is ethical, or what has been done in the past and should be done in the future.

E) All of the above relate to substantive interests.

A

57. Which of the following statements about interests is true?

A) There is only one type of interest in a dispute.

B) Parties are always in agreement about the type of interests at stake.

C) Interests are often based in more deeply rooted human needs or values.

D) Interests do not change during the course of an integrative negotiation.

E) All of the above statements about interests are true.

C

58. Successful logrolling requires

A) that the parties establish more than one issue in conflict and then agree to trade off among these issues so one party achieves a highly preferred outcome on the first issue and the other person achieves a highly preferred outcome on the second issue.

B) no additional information about the other party than his/her interests, and assumes that simply enlarging the resources will solve the problem.

C) that one party is allowed to obtain his/her objectives and he/she then "pays off" the other party for accommodating his/her interests.

D) a fundamental reformulation of the problem such that the parties are disclosing sufficient information to discover their interests and needs and then inventing options that will satisfy both parties' needs.

E) Successful logrolling requires all of the above.

A

59. What approach can parties use to generate alternative solutions by redefining the problem or problem set?

A) brainstorming

B) logrolling

C) surveys

D) nonspecific compensation

E) None of the above approaches can be used to redefine the problem.

D

60. In nonspecific compensation

A) resources are added in such a way that both sides can achieve their objectives.

B) one party achieves his/her objectives and the other's costs are minimized if he/she agrees to go along.

C) the parties are able to invent new options that meet each sides' needs.

D) one person is allowed to obtain his/her objectives and "pay off" the other person for accommodating his interests.

E) All of the above are related to nonspecific compensation.

D