Louse Questions A colleague has suggested that the approach your organisation should take to establishing an agreement is to encourage the other party to accept the merits of your case, with no concessions made on your side, What is your colleague recommendi 1B? A Accommodation 8 Coercion € Persuasion D_ Problem solving Afire has seriously damaged the premises occupied by Billie Co's headquarters. Asa result, the marketing, procurement, HR and finance functions have to share reduced space and a limited number of computers, which is causing disagreement and poor working relations. You have been tasked with leading a negotiation between the heads of the functions to resolve these problems. ‘What type of conflict are Billie Co’s functions experiencing? A Institutionalised conflict B Line-staff conflict © Resource conflict D_ Political conflict How should a negotiating team seek to handle a stakeholder which has high power but low interest in relation to a particular negotiation? A Exert minimal effort to keep the stakeholder on board B Keep the stakeholder informed about the progress of the negotiation © Do whatever is required to keep the stakeholder satisfied D Treat the stakeholder as a key player in the negotiation Your team has determined that the outcome they are seeking from an upcoming ‘negotiation is win-win. What style of negotiation is the team adopting? A. Distributive B_ Taskoriented € Competitive D__ Integrative Applying the Thomas-kilmann Instrument, when one party to a negotiation aimed at resolving conflict is co-operative but unassertive, that party is said to be: A Accommodating 8B Avoiding © Compromising D_ CollaboratingExam-Standard Questions and Sotutons | teu re in which of the following cases isan integrative style of negotiation more appropriate than a distributive style? 'A When one party has high bargaining power over the other 3 When the relationship between the partes s more important than the outcome of the negotiation When procuring routine, homogeneous of readily avalable tems 1D Whena key outcome is non-negotiable Annegotiator who develops an inspiring charisma and excellent interpersonal, communication and influencing skills is improving thelr: A Referent power B Coercive power Resource power D_ Position power Your organisation has a relationship with Gribble Co, 8 supplier, that is characterised by regular dealings which are seen in terms of mult source, ‘one-off commercial deals aimed ce securing competitive price and transaction efficiency: On ‘the relationship spectrum, this would be characterised as: ‘A anarm’s length relationship B a transactional relationship ¢ anadversarial relationship D_acloser tactical relationship. With which ofthe following suppliers would a buyer be LEAST LIKELY to want to develop a close, long-lasting relationship? ‘A. Asupplier which offers a good return on relationship investment 8 Asupplier which presents a risk to the buyer which can be minimised within a relationship ¢_Asupplier which is more powerful than the buyer D__Asupplier which offers opportunity for ongolng added value Which ofthe following isa form of cost-based pricing? A Penetration pricing B Skimming Dynamic pricing D_ Marginal pricingCommercial Neg Which of the following is an indirect cost for a manufacturer of frozen food? A Insurance for the production line B_ Wages of staff on the production line C Ingredients input into the process D Packaging for the final products Sabatini Co incurs fixed costs of $10,000 in relation to its Cath product, The Cath sells for $25 and variable costs are $15. What is the breakeven point in (a) units and (b) revenue? A (a) 1,000 units (b) $10,000 B (a) 400 units (b) $25,000 © (a) 1,000 units (b) $25,000 D(a) 400 units (b) $10,000 The quantity demanded of a product has moved along the demand curve for the product. Which of the following factors may have caused this movement? A Achange in the cost of producing the item B More efficient technology changing how the product is made © Achange in tastes and fashion D_Achange in the market price of the product ‘When the market price of Hozzers is $10, demand is 100,000 units. When the price rises to $12, demand falls to 90,000 units. What is the price elasticity of demand for Hozzers? A 0.5, so demand is inelastic B 0.5, so demand is elastic € 2,50. demandis inelastic D 2,sodemandis elastic negotiation is ongoing in which the buyer is in Country A, the supplier is in Country Band the price is to be expressed in Country’s B's currency, Which of the following statements about the effect of a fluctuating exchange rate is TRUE? ‘A The buyer will want to agree the price when the value of Country A’s currency is as low as possible against Country B’s currency B The exchange rate makes no difference to the cost incurred by the buyer The buyer will want to agree the price when the value of Country A’s currency is as high as possible against Country Bs currency D_ The buyer will be better off purchasing from a supplier operating in Country AeB a ss and Bolutions | CHAPTER 12 Which of the following accurately describes th mix for a negotiation? ues in, objectives of and bargaining A. Issues need to be addressed and objectives need to be achieved; together they form the bargaining mix B Objectives need to be addressed and issues need to be achieved; together they form the bargaining mix C Objectives need to be addressed and issues need to be achieved; the objectives form the bargaining mix D_ Issues need to be addressed and objectives need to be achieved; the issues form the bargaining mix E In relation to a three point range of objectives for a negotiation, what does MIL analysis set out? ‘A. Mustachieve, Intend to achieve and Like to achieve objectives B_ Most likely, Important and Least likely objectives Minimum acceptable, Important and acceptable, Less acceptable objectives Most desired outcomes, Issues outcomes, Least desired outcomes Difficult concessions to agree on in a negotiation are: A. of little importance to either party 8 of great importance to both parties of importance to the buyer but not the supplier D_ of importance to the supplier but not the buyer. You are preparing for distributive bargaining, and have been tasked with conditioning the other party. In which of the following ways will you seek to condition them? ‘A. Prepare them for problem-solving B Encourage positivity C__ Impress them with resources D_ Enable them to collaborate Your boss has indicated to the supplier in a negotiation that a neutral location should be the venue for the first meeting. What is your boss signalling to the supplier? ‘A. That the negotiation will be in the form of distributive bargaining B__ That the negotiation meeting is intended to enable your side to check out claims mace by the supplier as to resources they have available © That the negotiation meeting is intended to intimidate the supplier D_ That the negotiation will be an integrative oneCommercial @B atiation ‘You have been identified on the Myers-Briggs Type classification as an extrovert who senses, thinks and judges. In relation specifically to decision-making therefore, the analysis indicates that you: A are sociable, expressive and outward-focused B are likely to trust information that is detailed and based on facts, are detached, logical and follow rules D seek to resolve matters, Which of the following is the correct sequence of events in distributive bargaining following the opening bids? ‘A Making proposals; testing assumptions; bargaining B Bargaining; making proposals; testing assumptions C Testing assumptions; making proposals; bargaining D__ Testing assumptions; bargaining; making proposals A supplier in a distributive negotiation has made a serles of four concessions, each one of reducing value. What is likely to be the supplier’s next move? A Tostart offering concessions of the same amount until you agree B To start offering concessions of increasingly large amounts € To start offering concessions with no monetary value D_ To walk away Following a protracted integrative negotiation, a Pareto diagram has been created indicating how much value has been created and how that value has been shared between the parties. The negotiated deal is inside the Pareto efficiency frontier. The Parties have negotiated a post-settlement settlement (PSS) option. This means that A the parties have agreed to start the whole negotiation again to bring the deal nearer to the frontier B the parties have agreed to revisit the agreed deal to bring it nearer to the frontier the deal cannot be changed D_ the deal is null and void. ° ‘A negotiation team is being trained in how to conduct a negotiation, The trainer has said that each party in the negotiation needs to present its case or viewpoint with the aim of getting the other party to agree, What Is the trainer describing? A Bargaining B Constructive compromise Purposeful persuasion D Influence(@)_ Which one of the following indicates that the negotiator is using a push approach to influencing? A They are exerting authority B They are using persuasion © They are using interpersonal influence The other party is not aware of the approach that is being used (@) __morder to persuade the other party ina negotiation, you have carefully marshalled arguments, facts, figures and endorsements in support of your case, Which of the following techniques of persuasion put forward by Steele and Beasor are you using? A Bargaining 8 € Compromise D_ Emotion eB Picking up on the other party's dominant way of experiencing and expressing things In a negotiation is a form of: A Effective listening 8 Intrapersonal skill Rapport-building Non-verbal communication © Engaging the speaker in dialogue and using behaviours that help the listener listen in the full sense of the word is called A Hearing B Interpreting C Passive listening D Active listening Inrelation to non-verbal signals, which of the following is a description of kinesic behaviour? A How near you stand or sit to others Movements such as gestures, facial expressions, eye contact and body posture Personal grooming, dress, furniture and symbols D Tone of voice, speed, emphasis and other vocal qualities‘Which of the following evaluations of negotiation can be carried out during the negotiation? A. Asummative, process-focused evaluation BA formative, outcome-focused evaluation CA formative, process-focused evaluation D Asummative, outcome-focused evaluation What are the four pillars of persuasion as suggested by Steele? ‘A. Principles, People, Process and Ploys B People, Persuaders, Profits and Ploys C Principles, Profits, Process and Ploys D_ People, Process, Persuaders and Ploys Which of the following is another name for experiential learning? A Learning by doing B Coaching © Mentoring D_ Formal tuition fees