Archives: Quiz

Eurodollars are included in a. M1 b. M2 c. both the above d. neither the above Firms issue more equities than bonds for the following reason(s). a. it is cheaper to raise equity than to borrow b. bonds have a […]

Find the annualized cost of a commercial paper issue the has a $1,000,000 face value, matures in 180 days, has a placement fee of 1.5% and an interest charge of 8.5% over the 6 month period it is outstanding. a. […]

Which of the following statements are correct? a. debit cards provide for the immediate direct transfer of deposit accounts b. debit cards may be used for cash advances, even when there is not sufficient money in the account c. debit […]

If the quarterly rate of interest is 2.5% and interest is compounded quarterly, then the EAR is: a. 10.38% b. 10.00% c. 2.50% d. none of the above Which of the following statements is most correct? a. Bank reserves are […]

Currently, the Chairman of the Federal Reserve is ________________________. a. Paul Volker b. Alan Greenspan c. Ben Bernanke d. None of the above Which of the following are not typical of an accounts receivable loan arrangement? a. basic interest charge […]

One item that does not affect the cash conversion cycle is: a. inventory period b. accounts receivable c. accounts payable period d. all the above affect the cash conversion cycle ___________________ is an agreement by the investment banker to sell […]

Marketable securities are held primarily to meet: a. transactions motives b. precautionary motives c. speculative motives d. leverage motives Which of the following is not a variable cost? a. CEO Salary b. rent c. mortgage payments d. property taxes e. […]

In 1983, the average tuition for one year in the MBA program at a university was $3,600. Thirty years later, in 2013, the average tuition was $27,400. What is the compound annual growth rate in tuition (rounded to the nearest […]

In response to the financial crisis of 2007-2009, the yield spread between Aaa corporate bonds and treasury bonds: a. widened b. narrowed c. remained the same d. none of the above Which of the following is true of sunk costs? […]

The process of ______________ which is the process of pooling and packaging mortgage loans into debt securities resulted in the creation of ______________. a. securitization, pooled asset loans b. portfolio composition, mortgage backed securities c. issuing mortgage backed securities, securitization […]

If the variance for Stock A is greater than the variance for Stock B, then the coefficient of variation for Stock A: a. is greater than the coefficient of variation for Stock B b. is less than the coefficient of […]

After clinching a deal at first shot, a person immediately begins to think of the other alternatives that she could have exercised but did not. What is the person doing in the given situation? A) conceptual thinking B) lateral thinking […]

You want to put a working group together for a long, complex project. The goal of the project is to develop a Web-based application for an international client. The project will need coordination among different people who will have to […]

The strategy of making one’s first offer one’s final offer is known as ________. A) illusion of control B) the blue ocean strategy C) the gambler’s fallacy D) boulwarism What is a monolithic party? A) a party which is entirely […]

In which mental model of negotiation does each negotiator try to procure the lion’s share of the bargaining zone? A) capitulating B) haggling C) compromising D) partnership Adrian is pursuing a constructive dismissal dispute with his former employers, Chiles Properties. […]

Which of the following examples illustrates the concept of nonspecific compensation? A) Gary frames the issue under negotiation in terms of the potential problems rather than dwelling on shared interests. B) Jake trades off a concession on a less important […]

Which of the following types of lies is more likely to be detected by the triangulation method? A) lies of commission B) monitoring-dependent lies C) jocose lies D) lies of omission Ethnocentrism, or the unwarranted positive beliefs about one’s own […]

A reference point defines what a person considers to be a ________. A) liability B) break even C) resource D) profit What implication for negotiation can be seen from the fact that Americans are more likely to remember situations in […]

Tit-for-tat strategy can never do better than its opponent because ________. A) it always cooperates B) it defects on the first trial C) it always defects D) it cooperates on the first trial Which of the following is least likely […]

Which of the following types of comparisons is most likely to inspire people to greater achievement? A) upward comparison B) horizontal comparison C) downward comparison D) lateral comparison According to the text, it is important to stop negotiating when ________. […]

Which of the following statements is true about pseudostatus characteristics? A) During a negotiation, women have more influence than men. B) Pseudostatus characteristics are legitimate markers of status. C) Although pseudostatus characteristics are not legitimate markers of status, people treat […]

You are interviewing a candidate for the post of customer service executive. During the interview you observe how the candidate speaks, particularly his pauses, intonation, and fluency. You are evaluating the candidate on the parameter of ________. A) posture B) […]

Which of the following structural strategies attempts to induce cooperation through rewards and recognition such as an employee-of-the-month award? A) monitoring behavior B) privatization C) regulation D) aligning incentives ________ is a style of third-party intervention that involves a substantive […]

Robert is negotiating a sales contract for selling transformers that are manufactured by his company. He prefers to maximize the difference between his profit and that of the other party. Based on this information, identify Robert’s motivational orientation. A) individualistic […]

________ occurs when the mediator uses his or her position and leverage to influence the bargaining process, such as by offering incentives or even threats. A) Formulation B) Manipulation C) Pacification D) Facilitation Threats and contests are two types of […]

Which of the following occurs during the postsettlement settlement strategy? A) Negotiators explore other options while maintaining their BATNA constant. B) Negotiators stop exploring other options and accept the settlement as a permanent fixture. C) Negotiators decide to reject the […]

During a negotiation meeting, you feel that one of the persons from the other party, Jack, is very dominating. Which of the following characteristics does Jack most likely exhibit? A) Jack uses minimal hand gestures while speaking. B) Jack tends […]

During a negotiation, the group members decide to use an integrative method of tradeoff that requires each group member to offer another member a concession on one issue while receiving a concession from yet another group member on a different […]

If a utility function is concave, a decision maker will ________. A) always choose a risky gamble B) always choose a sure thing C) always make a decision in uncertainty or ignorance D) choose a prospect whose expected value is […]

Full-group communication ________. A) minimizes perceptions of competition B) is less time-consuming C) reduces equality of group members’ outcomes D) decreases joint profitability The presence of third parties usually ________. A) escalates the tension in negotiation situations, if the initial […]

Which of the following statements is true for negotiations conducted via e-mail? A) E-negotiators are forced to make more assumptions than face-to-face negotiators. B) There is more turn-taking in negotiations conducted via e-mail than in face-to-face negotiations. C) E-negotiators ask […]

You are going to buy an apartment in Alaska. You have to choose between eleven different proposals. This decision making scenario is an example of a risky choice. Which term has Herb Simon been credited with? A) greenwashing B) cocooning […]

What is the cognitive route to building trust based on? A) belief B) intuition C) emotion D) rationality Bounded ethicality refers to ________. A) the tendency of people to view themselves and their actions much more favorably than others view […]

Issues with single agendas are often ________ in nature. A) fixed sum B) integrative C) lose-lose D) win-win U.S.-based Bluegray Designs is undertaking a project for a client based in Sweden. As a result, most negotiation interactions will take place […]

What is separation? A) Separation occurs when a group neither maintains its own culture nor contact with the other culture. B) Separation occurs when a group maintains both its culture and contact with the other culture. C) Separation occurs when […]

Negotiators who communicate face-to-face are less likely to reach deals and avoid impasses than are e-negotiators. The union of both parties’ issues forms the issue mix of the negotiation. Answer: TRUE Explanation: The union of both parties’ issues forms the […]

Expressing disappointment can be detrimental if a negotiator intends to repair broken trust. Negotiators who are suspicious are less effective at the bargaining table. Answer: FALSE Explanation: Negotiators who are suspicious are more effective at the bargaining table because a […]

When the bargaining zone is small, contributions exert a stronger effect on resource allocation than do BATNAs. A mediator has process control, but no outcome control. Answer: TRUE Explanation: Process control refers to the ability of the third party to […]

In contrast to the peripheral route, little cognitive or mindful work is performed when attempting to persuade someone via the central route. There is more turn-taking in negotiations conducted via e-mail than in face-to-face negotiations. Answer: FALSE Explanation: There is […]

In majority rule elections, alternatives that are proposed later, as opposed to earlier, are more likely to survive sequential voting. Any set of terms superior to the negotiator’s BATNA is not desirable. Answer: FALSE Explanation: It is crucial for the […]

Direct-indirect communication refers to the basic human motive concerning preservation of the self versus the collective. Distributive self-efficacyrefers to a negotiator’s belief in her or his ability to create resources. Answer: FALSE Explanation: Integrative self-efficacy refers to a negotiator’s belief […]

Nonverbal sensitivity is correlated with intelligence. Tacit negotiations are characterized by binding contract. Answer: FALSE Explanation: Tacit negotiations are conducted by actions and pledges, in the absence of a binding contract. Many people’s BATNAs are uncertain because potential alternatives arrive […]

Negotiations occur only at the topmost hierarchical levels in the business world. The sinister attribution bias refers to the tendency for e-communicators to ascribe diabolical intentions to the other party. Answer: TRUE Explanation: The sinister attribution bias refers to the […]

Majority rule hinders the development of mutually beneficial trade-offs. The observed reluctance to pay to play a game, despite its objective attractiveness, is known as the St. Petersburg paradox. Answer: TRUE Explanation: The observed reluctance to pay to play a […]

Formulation involves a substantive contribution to negotiations by conceiving and proposing new solutions. It is important to stop negotiating if the other side is not responsive and reciprocal concessions grow smaller. Answer: TRUE Explanation: Cates suggests that negotiators stop when […]

Capitalism is the ultimate expression of market pricing. Within groups that demonstrate pro-self motives, majority rule leads to more integrative and less distributive behavior. Answer: FALSE Explanation: Within groups that demonstrate pro-self motives (as opposed to prosocial motives), majority rule […]

If you have not yet been offered the job but sense that the employer wants to find out what you desire in a job offer, it is advisable to talk about salary or specific terms. Physically attractive people are more […]

According to the framing effect, people are risk-averse for gains and risk-seeking for losses. People with a competitive orientation behave cooperatively when paired with a cooperative opponent. Answer: FALSE Explanation: People with a cooperative orientation behave competitively when paired with […]

It is similarities in preferences, beliefs, and capacities that may be profitably traded off to create joint gain. When people are experiencing greater arousal, or nervousness, they tend to make fewer movements. Answer: FALSE Explanation: When people are experiencing greater […]

Mediators who are manipulators occasionally reveal information they have gathered independently and thereby clarify misconceptions. Expressive people are considered to be more attractive than unexpressive people. Answer: TRUE Explanation: Expressive people are considered to be more attractive than unexpressive people. […]