Business Negotiations
Review Questions
Course Introduction
Business Negotiations explores the principles, strategies, and processes central to successful negotiation in a business context. The course examines both competitive and collaborative negotiation methods, emphasizing preparation, communication, and ethical considerations. Through case studies, simulations, and role-plays, students develop practical skills in bargaining, conflict resolution, and deal-making. Topics include cross-cultural negotiation, multi-party dynamics, and the impact of psychological factors on negotiation outcomes. By the end of the course, students will be equipped with the tools necessary to confidently engage in and lead negotiations across various business environments.
Recommended Textbook
The Mind and Heart of the Negotiator 6th Edition by Leigh Thompson
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12 Chapters
330 Verified Questions
330 Flashcards
Source URL: https://quizplus.com/study-set/3276 Page 2
Chapter 1: Negotiation: The Mind and Heart
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23 Verified Questions
23 Flashcards
Source URL: https://quizplus.com/quiz/65048
Sample Questions
Q1) What is the fraternal twin model of negotiation,and why does it contribute to more successful outcomes in negotiation?
Answer: The fraternal twin model assumes that the counterparty is every bit as motivated,intelligent,and prepared as you are.Thus,it contributes to more successful outcomes because parties rely on simultaneously expanding and allocating the pie of resources,rather than on "outsmarting" or tricking the other party.
Q2) With regard to negotiation style,truly effective negotiators are neither tough or soft,but rather they:
A)are friendly
B)are principled
C)rely on intuition
D)are dignified
Answer: B
Q3) What are the key reasons why effective negotiation skills are increasingly important in the business world?
Answer: They are increasingly important because of the following five key reasons: (1)the dynamic nature of business,(2)interdependence,(3)economic forces,(4)information technology,and (5)globalization.
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Chapter 2: What to Do Before Negotiation
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) In preparing for negotiation,a negotiator needs to determine what would constitute an ideal outcome,or favorable set of terms,also known as a _______.
A)winner's result
B)target point
C)BATNA
D)reservation point
Answer: B
Q2) What is the difference between a target point and reservation point,and why is it important not to confuse the two?
Answer: A target point relates to an ideal situation,but a reservation point relates to what represents as one's BATNA.Using one's target point as a reservation point can result in the following fatal flaws: agreeing to a settlement that is worse than what the negotiator could do or walking away from a potentially profitable deal.
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Chapter 3: Distributive Negotiations
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25 Verified Questions
25 Flashcards
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Sample Questions
Q1) Some negotiators make extreme offers.The result of this strategy often means the counterparty may be offended and walk away from the table.This is known as the:
A)chilling effect
B)goal-setting paradox
C)social utility decline
D)winner's curse
Answer: A
Q2) What are some of the costs of lying in a negotiation?
Answer: Lying about your reservation point reduces the size of the bargaining zone and negotiations may end in impasse.The most common lie in negotiation is,"This is my final offer" and it would be embarrassing to continue negotiating after making such a statement.Finally,lying hurts your reputation.Once you have the reputation of a tough negotiator,people will behave more competitively with you.Additionally,people who discover that they have been deceived,seek retribution.
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Chapter 4: Win-Win Negotiation
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) What are some of the misperceptions about the meaning of a win-win negotiation? Why do these misperceptions contribute to leaving money on the table in negotiation situations?
Q2) Win-win negotiations are also known as:
A)fair division negotiations
B)equal-concession negotiations
C)integrative negotiations
D)distributive negotiations
Q3) In negotiation,the strategy of making concessions on low-priority issues in exchange for gains on high-priority issues is known as:
A)the fixed pie perception
B)logrolling
C)counterfactual thinking
D)consensus conflict
Q4) In negotiation,the illusion of transparency is best described as occurring when negotiators:
A)make predictions when information is in short supply
B)make judgments and decisions that differ from rational choices
C)make reasonable estimations based on a single known data point
D)believe they are revealing more than they actually are
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Chapter 5: Developing a Negotiation Style 1
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24 Verified Questions
24 Flashcards
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Sample Questions
Q1) With regard to reputation in negotiation,negotiators who use adversarial,stubborn,and ethically-questionable behavior often have the effect of:
A)enhancing their reputations
B)improving their business relationships
C)being regarded as ineffective
D)decreasing their group status
Q2) What are the fundamental differences between tough and soft negotiators,and what are the disadvantages of adopting either stance?
Q3) Assess your own motivational orientation by completing the questions in Exhibit 5-3.Given that a key to self-insight is recognizing the external factors that shape your motivational orientation (following Richard Shell's list),what tools do you need to help you become more effective at pie-slicing and pie expansion?
Q4) With regard to effective dispute resolution,a method whereby parties learn to prevent similar problems in the future is known as:
A)the mediation method
B)the wise counselor method
C)the postdispute analysis and feedback method
D)the crisis procedure method
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Chapter 6: Establishing Trust and Building a Relationship
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Sample Questions
Q1) What are some considerations people might have in a negotiation that are not necessarily monetary in nature?
Q2) Negotiators often develop trusting,long-term relationships with people who are physically close to them,or located nearby.This effect is known as the:
A)reactance theory
B)halo effect
C)propinquity effect
D)networking game
Q3) Regarding the types of conflict that can occur in relationships,_____ is a depersonalized form of conflict,consisting of the argumentation about the merits of ideas,plans,and projects,independent of the identity of the people involved.
A)personal conflict
B)task conflict
C)the lose-lose effect
D)illusory conflict
Q4) What are some of the psychological strategies for building trust in a relationship?
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Chapter 7: Power,persuasion,and Ethics
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32 Verified Questions
32 Flashcards
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Sample Questions
Q1) The "costs" of lying in negotiation include all of the following,except:
A)personal costs in terms of a person having to remember what he or she liedabout
B)social costs in terms of creating a society in which rules have to be created to deal with liars
C)environmental costs in terms o f people being less cognizant about their effect on natural resources
D)social costs in terms of people being suspicious about others
Q2) Describe the four vantage points of power.
Q3) Related to the issues of ethics and lying in negotiation,______ are the stated demands made by one party to another.
A)priorities
B)positions
C)interests
D)preferences
Q4) How does the balance of power between negotiators affect the processes and outcomes of negotiation?
Q5) In what ways does power affect a person's social awareness?
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Chapter 8: Creativity and Problem Solving in Negotiations
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30 Verified Questions
30 Flashcards
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Sample Questions
Q1) Considering the variety of creative techniques for reaching an integrative negotiation agreement,which of the following strategies describes non-specific compensation?
A)Compensating the parties on a variety of low-priority issues
B)Neither party gets its initial specific demands but an alternative option is developed
C)One party getting what it wants and the other is compensated by some method on a new issue
D)Trading low priority issues for higher priority issues
Q2) In order for contingency contracts to be viable and useful in negotiation,they must:
A)accurately predict the future
B)apply to the present interaction,not related to a future interaction
C)have a high degree of clarity and measurability
D)involve three or more parties in the contract
Q3) Why do business negotiations often avoid or ignore contingency contracts as options for creative agreements.
Q4) What is a mental model of negotiation?
Q5) What are some of the threats to effective problem solving and creativity in negotiation?
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Page 10
Chapter 9: Multiple Parties, coalitions, and Teams
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) What are some interpersonal strategies for effectively navigating coalitions?
Q2) There are several advantages of working with an agent in a negotiation.In most principal-agent relationships,an agent's authority is limited with respect to:
A)making concessions or agreements
B)joining professional affiliations
C)providing a buffer zone
D)targeting key strategies
Q3) Consider a multiparty negotiating situation.How does the tradeoff strategy of circular logrolling work?
A)Negotiators each give and exchange resources with each other
B)Each group member offers a counterparty member a concession on one issue while receiving a concession from a different group member on a different issue
C)One party gives a concession and receives a cash bond from another party
D)Tradeoffs are all presented at once and each member gets to select which ones work best for them
Q4) What advantages can be realized by using agents to represent one's interests?
Q5) What are some strategies for maximizing coalitional effectiveness?
Q6) What are the key challenges of multiparty negotiations?
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Chapter 10: Cross-Cultural Negotiation
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) In cultures where communications are direct,information exchange in negotiation is generally:
A)nuanced
B)inferred
C)biased
D)context-free
Q2) Negotiators have more difficulty expanding the pie when negotiating across cultures than within a culture.One reason for this is because it is difficult for negotiators to resolve conflicts that involve _______,or the beliefs,customs,and assumptions that form the basis of a group's or culture's belief system.
A)taboo trade-offs
B)stifling values
C)sacred values
D)fixed knowledge
Q3) In light of a culture's relationship to power,what are the implications to intercultural negotiations that must be considered?
Q4) Consider Exhibit 10-6.How is power distance related to individualism and collectivism?
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Chapter 11: Social Dilemmas
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/65038
Sample Questions
Q1) Which of the following reasons is true regarding why the strategy of tit-for-tat is effective at inducing cooperation in repeated social dilemma interactions?
A)The tit-for-tat strategy aims to beat its opponent
B)The tit-for-tat strategy always begins the interaction with competitive behavior
C)The tit-for-tat strategy seeks to maximize its own gains in the long run
D)The tit-for-tat strategy can earn much more than the strategy it plays against
Q2) In an ultimatum bargaining situation,where one person makes a final offer to another person,and both parties only receive their portions of the offer if the responder accepts the proposer's terms,responder acceptance rates are driven by:
A)tacit negotiation strategy
B)sunk costs
C)how much information they have about the size of the pie
D)how much information they have about deadlines involved
Q3) Give some examples of personal and interpersonal escalation of commitment dilemmas.What are the psychological reasons for the escalation of commitment phenomenon?
Q4) How can the tit-for-tat strategy demonstrate the toughness of a negotiator?
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Chapter 12: Negotiating Via Information Technology
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/65037
Sample Questions
Q1) What are the positive and negative implications for electronic negotiation? Does information technology hurt or hinder the ability of negotiators to "expand the pie" of resources in a negotiation?
Q2) Which of the following methods is recommended for enhancing technology-mediated negotiations?
A)Immediately getting down to business by starting to negotiate
B)Technology-mediated schmoozing
C)Initial face-to-face experience
D)A phone call with the counterparty after an agreement is negotiated
Q3) Flaming or acting rudely toward others in negotiation occurs more frequently through e-mail than in face-to-face interactions because:
A)people feel more status competition when interacting face-to-face
B)people lack social cues and norms when they are on e-mail
C)people are more likely to seek revenge face-to-face than they are electronically
D)people are under the influence of superrationality when interacting electronically
Q4) What are some strategies for enhancing technology-mediated negotiations?
Q5) What are the four main challenges with same time,different place negotiations?
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