Test Bank For Essentials of Negotiation 4th Canadian Edition By Roy J. Lewicki, Kevin Tasa, Bruce Ba by welldoneassistant

Test Bank For Essentials of Negotiation 4th Canadian Edition By Roy J. Lewicki, Kevin Tasa, Bruce Barry, David M. Saunders Chapter 1-13

Chapter 01 The Nature of Negotiation True / False Questions 1. Negotiations occur for only one reason: to create something new that neither party could achieve alone. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-01 Define negotiation and explain the key elements of a negotiation process and the distinct types of negotiation. Topic: 01-01 Becoming a Better Negotiator

2. Sometimes people fail to negotiate because they do not recognize that they are in a negotiable situation. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-01 Define negotiation and explain the key elements of a negotiation process and the distinct types of negotiation. Topic: 01-01 Becoming a Better Negotiator

3. Good negotiators are made, not born. TRUE

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4. Negotiating parties rarely negotiate by choice. FALSE

5. It is always a good time to negotiate, there are no conditions which make negotiation more favourable. FALSE

6. Most individuals in Western culture do not negotiate enough. TRUE

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-01 Define negotiation and explain the key elements of a negotiation process and the distinct types of negotiation. Topic: 01-02 Characteristics of a Negotiation Situation

7. Successful negotiation involves the management of tangibles (e.g., the price or the terms of an agreement) and also the resolution of intangibles. TRUE

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8. Intangible factors are the underlying psychological motivations that may directly or indirectly influence the parties during a negotiation. TRUE

9. Independent parties can meet their own needs without the help and assistance of others. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

10. Dependent parties never rely on others for what they need. FALSE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

11. The mix of convergent and conflicting goals characterizes many interdependent relationships. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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12. The interdependence of people's goals, and the structure of the situation in which they are going to negotiate, has little effect on the negotiation processes and outcomes. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

13. The purpose of a distributive negotiation is to create value. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-05 Value Claiming and Value Creating

14. Whether you should or should not agree on something in a negotiation depends entirely upon the attractiveness to you of the best available alternative. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

15. Distributive bargaining is most appropriate when the likelihood of having to bargain with the other party again in the future is low. TRUE

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16. Negotiator perceptions of situations tend to be biased toward seeing problems as more integrative, or as less competitive, than they really are. FALSE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-05 Value Claiming and Value Creating

17. Conflict occurs when two interdependent parties have conflicting goals and each is trying to prevent the other from achieving their objectives. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

18. Negotiations often begin with statements of opening positions. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

19. A concession occurs when one party refuses to accept a change in his or her position. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

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20. Concessions restrict the range of options within which a solution or an agreement will be reached. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

21. Two of the dilemmas in mutual adjustment that all negotiators face are the dilemma of honesty and the dilemma of trust. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

22. Most actual negotiations are a combination of claiming and creating value processes. TRUE

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

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

25. Negotiation situations have fundamentally the same characteristics. TRUE

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

27. One of the common characteristics of negotiation is that the parties prefer to negotiate and search for agreement rather than to fight openly. TRUE

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28. 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. FALSE

29. 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—it is a competitive situation, also known as a zero-sum (or distributive) situation. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

33. Actors pursuing the avoiding strategy show little interest in whether they attain their own outcomes, as well as little concern about whether the other party obtains his or her outcomes. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

34. As a conflict management strategy, compromising represents a strong effort to pursue our own outcomes and a moderate effort to help the other party achieve his or her outcomes. FALSE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

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Multiple Choice Questions 35. Negotiation is about resolving: A. Independence B. Conflict C. Interdependence D. Harmony

36. Negotiations occur for several reasons, except? A. To agree on how to share or divide a limited resource B. To create something new that neither party could do on his or her own C. It can lead to better social skills D. To resolve a problem or dispute between the parties

37. A situation in which solutions exist so that both parties are trying to find a mutually acceptable solution to a complex conflict is what kind of a situation? A. Mutual gains B. Win-lose C. Zero-sum D. Win-win

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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38. Which of the following dilemmas concerns how much of the truth to disclose to the other party in a negotiation? A. Dilemma of morality B. Dilemma of trust C. Dilemma of honesty D. Dilemma of independence

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

39. When the teachers union finally completed the bargaining process with the province, both parties left the table feeling satisfied that they had achieved some of their objectives. This exemplifies which kind of bargaining situation? A. Win-lose B. Mutual gains C. Win-win D. Zero-sum

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

40. All of the following are considered intangible factors in a negotiation, except? 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

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41. Interdependent parties' relationships are characterized by: A. Interlocking goals B. Solitary decision making C. Established procedures D. Rigid structures

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

42. A zero-sum situation is also known as what kind of a situation? A. Integrative B. Distributive C. Win-win D. Loss-loss

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

43. BATNA stands for: A. Best alternative to a negotiated agreement. B. Best action towards a negotiated agreement. C. Best alternative to a negative agreement. D. Best alternative to a negative action.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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44. What are the two dilemmas of negotiation? A. The dilemma of cost and the dilemma of trust 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

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

45. 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.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

46. Which of the following statements about conflict is true? A. Conflict is the result of tangible factors, arising from compatible objectives regarding price. B. Conflict can occur when two parties are working toward the same goal and generally want the same outcome or when both parties want very different outcomes. C. Conflict only occurs when both parties want a very different settlement. D. Conflict has a marginal effect on interdependent relationships.

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

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47. Which of the following factors contribute to conflicts' destructive image? A. Increased communication B. Misperception and bias C. Clarifying issues D. Minimized differences; magnified similarities

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

48. All of the following are major strategies for conflict management that have been identified in the dual concerns model, except? A. Yielding B. Compromising C. Problem Solving D. Action

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

49. In most of the early writing on conflict management, which approach was identified as the distinctly preferred approach? A. Yielding B. Compromising C. Problem Solving D. Avoiding

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

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50. In which of the following conflict management strategies do actors show high concern for attaining their own outcomes and high concern for whether the other party attains his or her outcomes? A. Yielding B. Contending C. Avoiding D. Problem solving

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

Short Answer Questions 51. What are the three reasons negotiations occur? Negotiations occur for several reasons: (1) to agree on how to share or divide a limited resource (such as land, property or time); (2) to create something new that neither party could do on his or her own; or (3) to resolve a problem or dispute between the parties.

52. Experience always makes a negotiator better at bargaining. Do you agree or disagree with this statement? Answers will vary. Experience does not necessarily lead to better negotiating skills because the real world contains so few sources of accurate feedback that can help someone improve their skills.

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53. How does choice motivate negotiation? Choice motivates negotiation when someone thinks they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have. Negotiation is largely a voluntary process. We negotiate because we think we can improve our outcome or result, compared to not negotiating or simply accepting what the other side offers. It is a strategy pursued by choice; seldom are we required to negotiate.

54. Describe tangible and intangible factors in negotiation? Tangible factors include quantifiable items (price, terms of agreement, etc.). By intangible factors, we are referring to the deeper psychological motivations that may directly or indirectly influence the parties during the negotiation.

55. What are the three characteristics of most relationships between parties? Most relationships between parties may be characterized in one of three ways: independent, dependent, and interdependent.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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56. Define "zero-sum" situation. Individuals are so linked together that there is a negative correlation between their goal attainments.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-02 Characteristics of a Negotiation Situation

57. Describe a "mutual-gains" situation. When parties' goals are linked so that one person's goal achievement helps others to achieve their goals, it is a mutual-gains situation, also known as a non-zero-sum or integrative situation, where there is a positive correlation between the goal attainments of both parties.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

58. What does the acronym BATNA mean? Best Alternative to a Negotiated Agreement.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-03 Managing Interdependence

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59. What role do concessions play when a proposal isn't readily accepted? If the proposal isn't readily accepted by the other, negotiators begin to defend their own initial proposals and critique the others' proposals. Each party usually suggests alterations to the other party's proposal, and perhaps also changes his or her own position. When one party agrees to make a change in his or her position, a concession has been made. Concessions restrict the range of options within which a solution or agreement will be reached. When a party makes a concession, the bargaining range (the difference between the preferred acceptable settlements) is further constrained.

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

60. What are concessions? A concession has been made when one party accepts a change in his or her position. Concessions restrict the range of options within which a solution or agreement will be reached.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

61. Contrast and compare the dilemmas of honesty and trust. Dilemma of honesty concerns how much of the truth to tell the other party. The dilemma of trust is how much of what the other party tells them should negotiators believe.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-02 Describe how people use negotiation to manage situations of interdependence. Topic: 01-04 Making Concessions

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62. Describe the conditions under which a distributive approach to bargaining is preferred? Generally, distributive bargaining is most appropriate when time and resources are limited, when the other party is likely to be competitive, and when there is no likelihood of future interaction with the other party.

63. Describe the strategies and tactics a negotiator would employ in a distributive bargaining situation. In distributive situations, negotiators are motivated to win the competition and beat the other party, or gain the largest piece of the fixed resource that they can. In order to achieve these objectives, negotiators usually employ "win-lose" strategies and tactics. This approach to negotiation—called distributive bargaining— accepts the fact that there can only be one winner given the situation and pursues a course of action to be that winner. The purpose of the negotiation is to claim value—that is, to do whatever is necessary to claim the reward, gain the lion's share, or gain the largest piece possible.

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-05 Value Claiming and Value Creating

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64. Why should negotiators be versatile in their comfort and use of both value-claiming and value-creating strategic approaches? Not only must negotiators be able to recognize which strategy is most appropriate, but they must be able to use both approaches with equal versatility. There is no single "best", "preferred", or "right" way to negotiate; the choice of negotiation strategy requires adaptation to the situation. Moreover, if most negotiation issues or problems have claiming and creating value components, then negotiators must be able to use both approaches in the same deliberation.

65. Compare a problem-solving conflict management strategy to a compromising conflict management strategy. Problem solving (also called collaborating or integrating) is the strategy in the upper-right corner. Actors pursuing the problem-solving strategy show high concern for attaining their own outcomes and high concern for whether the other party attains his or her outcomes. In problem solving, the two parties actively pursue approaches to maximize their joint outcome from the conflict. Compromising is the strategy located in the middle of the dual concerns model (Figure 1.1). As a conflict management strategy, it represents a moderate effort to pursue our own outcomes and a moderate effort to help the other party achieve his or her outcomes. Pruitt and Rubin do not identify compromising as a viable strategy; they see it "as arising from one of two sources—either lazy problem solving involving a half-hearted attempt to satisfy the two parties' interests, or simple yielding by both parties."

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

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66. Explain how conflict is a potential consequence of interdependent relationships. Conflict can result from the strongly divergent needs of the two parties or from misperceptions and misunderstandings. Conflict can occur when the two parties are working toward the same goal and generally want the same outcome or when both parties want very different outcomes. Regardless of the cause of the conflict, negotiation can play an important role in resolving it effectively.

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 01-03 Explain how negotiation fits within the broader perspective of processes for managing conflict. Topic: 01-06 Conflict

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Chapter 02 Strategy and Tactics of Distributive Bargaining

True / False Questions 1. Distributive bargaining is basically a competition over who is going to get the most of a limited resource. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

2. Whether or not one or both parties in a distributive bargaining situation achieve their objectives will depend upon the strategy and tactics they employ. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

3. Many people use distributive bargaining strategies and tactics almost exclusively, negotiators don't need to understand how to counter their effects. FALSE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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4. The resistance point is the point beyond which a person will not go and would rather break off negotiations. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

5. The spread between the resistance points is called the bargaining agreement. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

6. A positive bargaining zone occurs when the buyer's resistance point is above that of the seller. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

7. Alternatives are important because they give the negotiator the power to walk away from any negotiation when the emerging deal is not very good. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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8. The objective of both parties in negotiation is to obtain as little of the bargaining zone as possible for themselves. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

9. Central to planning the strategy and tactics for distributive bargaining is effectively locating the other party's resistance point. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

10. The more attractive the other party's alternatives, the more likely he or she will be to maintain a low resistance point. FALSE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

11. A resistance point will be influenced, in part, by the cost an individual attaches to delay negotiation. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

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12. The lower the other party's estimate of your cost of delay or impasse, the stronger the other party's resistance point will be. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

13. The less the other party values an issue, the lower his or her resistance point will be. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

14. If the other party sees that you need a settlement quickly and cannot defer it, the more modest the other's resistance point will be. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

15. Reticence increases the likelihood of making verbal slips or presenting any clues that the other side could use to draw conclusions. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

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16. Boulwarism is a take-it-or-leave-it approach often used in labour relations. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

17. Concealment is the most general screening activity. TRUE

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

18. Channelling all communication through a team spokesperson increases the risk of inadvertently revealing information. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

19. In some ways, the ultimate weapon in negotiation is to threaten to terminate negotiations. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

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20. Schedule manipulation can be used to squeeze negotiations into the last remaining minutes of a meeting in order to extract concessions from one party. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

21. To communicate the most effective message, a negotiator should try to send a consistent message through both the opening offer and stance. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

22. If one side is not prepared to make concessions, the other must capitulate or the negotiations will deadlock. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

23. An offer that may have been rejected had it emerged as a result of concession making may be accepted when it is presented as a fait accompli. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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24. When acting as if the decision to close the deal has already been made, the negotiator is using the "assume-the-close" tactic of closing the agreement. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

25. Splitting the difference is perhaps the least popular closing tactic. FALSE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

26. To encourage further concessions from the other side, negotiators sometimes link their concessions to a prior concession made by the other. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

27. Most hardball tactics are designed to either enhance the appearance of the bargaining position of the person using the tactic or to detract from the appearance of the options available to the other party. TRUE

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

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28. The "snow job" tactic occurs when negotiators overwhelm the other party with so much information that they have trouble determining which information is real or important. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

29. Aggressive tactics include a relentless push for further concessions. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

30. Ignoring a hardball tactic always gives the appearance of a weak response. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

35. Anything outside the bargaining zone will be summarily rejected by one of the negotiators. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

37. Negotiations that begin with a negative bargaining range are likely to stalemate. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

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40. 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. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

41. The first step for a negotiator is to obtain information about the other party's outcome values and resistance points. FALSE

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

43. 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 favourable to the presenter than those that currently exist. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

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

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

46. 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. TRUE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

51. Hardball tactics are infallible if used properly. FALSE

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

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

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

53. The "snow job" tactic occurs when negotiators give the other party too little information. FALSE

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

54. Aggressive tactics include pushing for further concessions, asking for the best offer early, and asking the other party to explain and justify his or her proposals item by item. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

55. An effective strategy for dealing with intimidation is to use a team to negotiate with the other party. TRUE

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-04 Recognize and defend yourself from hardball tactics used by others. Topic: 02-05 Hardball Tactics

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Multiple Choice Questions 56. 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.

Accessibility: Keyboard Navigation Difficulty: Hard Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

57. 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.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

58. Starting points (or initial offers): 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.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

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59. The objective of both parties in distributive bargaining is to obtain as much of what as possible? A. Bargaining range B. Resistance point C. Target point D. Bargaining mix

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-01 Recognize distributive bargaining situations. Topic: 02-01 The Distributive Bargaining Situation

60. What is expected from a particular outcome when the resistance point is established? A. Costs B. Value C. Timeliness D. Importance

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

61. The more you can convince the other party that your costs of delay or aborting negotiations are _______, the more modest the other's resistance point will be. A. high B. modest C. extreme D. low

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

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62. 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 a(n) _____ resistance point. A. High B. Low C. Modest D. Extreme

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-02 Explain the importance of goals and targets, reservation points, and alternatives. Topic: 02-02 Fundamental Strategies

63. Research and practical experience suggest that a large majority of agreements in distributive bargaining are reached when the deadline is: A. near. B. flexible. C. past. D. undefined.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

64. Disruptive action tactics can cause all of the following, except? A. Embarrassment B. Increased costs C. Anger D. Mutual satisfaction

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

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65. 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.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

66. 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.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-03 Tactical Tasks

67. All of the following actions are possible after the first round of offers, except? A. Hold firm B. Insist on the original position C. Make some concessions D. Make a revised first round offer

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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68. 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.

Accessibility: Keyboard Navigation Difficulty: Medium Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

69. What of the following statements about concessions is incorrect? A. Concessions are central to negotiations. B. Concession is another word for adjustments in position. C. Concession making exposes the concession maker to some risk. D. Reciprocating concessions is a haphazard process.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

70. Parties feel better about a settlement when negotiations involve a(n): A. immediate settlement. B. a single round of concessions. C. progression of concessions. D. fait accompli.

Accessibility: Keyboard Navigation Difficulty: Easy Learning Objective: 02-03 Describe the tactical approaches used in distributive situations. Topic: 02-04 Positions Taken during Negotiation

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