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 work from different
geographic regions. While selecting the team members you make sure that the members
already know each other. Which of the following is the strongest argument that supports
your decision?
A) When negotiators interact via technology, power and status differences are
minimized.
B) As compared to face-to-face teams, virtual teams are better at brainstorming and
generating new ideas.
C) Even a short face-to-face meeting among people can reduce uncertainty and build
trust.
D) Face-to-face teams communicate better initially but their performance deteriorates
over time.
Ronald Transformers wants to open a new plant. After thorough research, the company
has identified five suitable sites. There is conflict over which site to select, so
management decides to put it to vote and then take the decision by majority rule.
Despite its democratic appeal, the decision fails and the company has to stop the
construction of the plant at the chosen site.
Which of the following arguments best explains the reason behind this failure?
A) The majority rule discouraged group members from implementing integrative
bargaining strategies.
B) The use of the majority rule created the problem of tunnel vision for participants.
C) Use of the majority rule failed to take into consideration the strength of individual
preferences.
D) Use of the majority rule discouraged effective implementation of circular logrolling.
What is the advantage of a negotiator breaking down issues important to him into
smaller subsets, prior to a negotiation?
A) It provides greater opportunity for creative agreements.
B) It enhances the attractiveness of the negotiator’s BATNA.
C) It helps the negotiator deal with any unplanned negotiation scenario.
D) It helps the negotiator assess the employer’s possible BATNAs.
Lewicki and Stark identified five types of behavior that some consider to be unethical
in negotiations. One of them is traditional competitive bargaining. Which of the
following is an example of traditional competitive bargaining?
A) inappropriate information gathering
B) denying information that weakens your position
C) attempting to get your opponent fired
D) exaggerating an initial offer or demand
Mr. Smith, manager of ABC Corp., plans to acquire another company. He is on the
verge of negotiating with the other company’s manager. Mr. Smith is predisposed to
attribute successful outcomes to his own skill while holding bad luck or others squarely
responsible for all unsuccessful outcomes. This tendency has unfortunately led him to
make deals that have not been successful. What is his problem known as in business
negotiation terms?
A) confirmation bias
B) egocentrism
C) self-reinforcing incompetence
D) satisficing
If someone wants to lie about a closing date, it would be important to determine what
kind of closing date is preferred by the target (one cannot assume early or late). This is
an example of a ________.
A) jocose lie
B) lie of omission
C) monitoring-dependent lie
D) lie of commission
You are in the process of negotiating a sales contract with a new client. The product you
are selling is high-quality and has received excellent reviews from customers. You have
a strong bargaining position in this negotiation. In such a situation, which of the
following will be the ideal mode of communication for negotiating the contract with the
new client in order to receive the maximum benefit?
A) e-mail
B) instant messaging
C) telephone
D) face-to-face
Which of the following comes closest to implying a win-win situation?
A) reaching a middle ground between negotiators’ positions
B) dividing the bargaining zone among the negotiators
C) satisfaction on the part of both negotiating parties
D) leveraging all creative opportunities and resources
Which of the following statements is true about emotions?
A) Moods are less chronic when compared to emotions.
B) Emotions are usually not directed at a certain event or at someone.
C) The classification of moods is more specific than that of emotions.
D) Emotions are usually fairly intense.
Albert, sales representative of an FMCG company, is calling on one of the distributors.
The distributor asks for a credit term of ninety days. Albert knows the maximum credit
period offered by his company is 75 days although 50 days is the preferred norm.
Without much effort, he convinces the distributor to agree to 75 days of credit. Albert is
not bothered to attempt a lower credit term, although it is worth trying. Albert’s
inefficiency in bargaining can be attributed to ________.
A) satisficing
B) optimizing
C) confirmation bias
D) self-reinforcing incompetence
Which of the following is a valid characteristic of the value function?
A) The shape of the value function does not change at the reference point.
B) The value function is noticeably steeper for losses than for gains.
C) At some focal amount of the pertinent outcome, negotiators consider larger amounts
as losses and smaller amounts as gains.
D) The shape of the value function remains constant for an individual.
After completing the selection procedure and the interview, Michel received a job offer
from the company which did not meet his salary expectations. In reply to this offer,
Michel told the recruiter, “I would like to join your company, but I have received better
offers from some other companies.” According to the negotiation approaches developed
by Ury, Brett, and Goldberg, this is a(n) ________ response.
A) interests-based
B) capabilities-based
C) rights-based
D) power-based
What strategy do Bazerman and Neale recommend to improve BATNA?
A) One must have one’s mind set on the target.
B) One must, if necessary, abandon the target completely.
C) One must be ready with alternative and viable options.
D) One must demand more than the determined option.
When people assume that the cause of a particular behavior is something external to the
individual, this is known as ________.
A) dispositional attribution
B) situational attribution
C) ultimate attribution error
D) fundamental attribution
What is schematic overcompensation?
A) It is a phenomenon that occurs when negotiators try to adjust to their counterpart’s
cultural assumptions and styles, resulting in the failure of intercultural negotiations.
B) It is a phenomenon that occurs when negotiators stay anchored to their own cultural
assumptions and styles, resulting in the failure of the intercultural negotiations.
C) It is a phenomenon that occurs when a group or person does not maintain its culture
but maintains contact with the other culture.
D) It is a phenomenon that occurs when neither maintenance of the group’s own culture
nor contact with the other culture is attempted.
Which of the following is a characteristic of BATNA?
A) inflexible
B) unrealistically optimistic
C) spontaneous
D) time sensitive
________ conflict is rooted in personality and ego.
A) Intuitive
B) Structural
C) Cognitive
D) Emotional
Which of the following statements is true of comparables and benchmarks in job
negotiation?
A) Concerns for social comparisons are more important when people evaluate two
options than when they evaluate a single option.
B) People are more likely to accept a higher-paying job that pays other employees more
than a lower-paying job that pays other employees the same amount.
C) People do not want to be underpaid and would even give up more absolute money if
this meant they were treated like others.
D) Signing bonuses are found to have a significant positive effect on rates of acceptance
of job offers among most MBA students.
A national chain of sandwich stores encourages the development of uniformity among
customer-facing employees in all its outlets to increase familiarity and trust with the
brand. To attain consistency in behavior, managers of the various outlets keep a record
of employees who make errors and those who adhere to protocol. Successful employees
are rewarded, while negligent employees are reprimanded. The managers in this case
are using ________.
A) knowledge-based trust
B) deterrent-based trust
C) identification-based trust
D) isolation-based trust
________ cost is money invested in the past which is not retrievable in the present.
A) Opportunity
B) Sunk
C) Product
D) Explicit