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Question
An Ohio resident is trying to sell her house for which she had paid $540,000 two years ago. Though she is ready to sell it at the original price, research into the market value tells her that a house of similar size in Ohio is worth $580,000 at this time. The house is in unrepaired condition and the estimated repair charge is $125,000. She has tried unsuccessfully to sell the house five times over and is moving for good to St. John's to live with her ailing mother at the end of the month, where she plans to buy a comparable property for $ 385,000. She wants to pay for the property at St. John's immediately and does not have any other sources of finance. There are a few buyers who have shown interest in the Ohio home. Which of the following options can solve her problem and can lead to a win-win agreement between the parties?
A) Buyer A agrees to pay $580,000. However, as the amount is large, he agrees to pay the amount over three years in installments.
B) Buyer B is willing to pay $ 540,000, which is the market price rather than the original price, in installments over two years.
C) Buyer C agrees to pay $ 500,000 but says he will deduct the repair charges from the amount.
D) Buyer D says that he can't pay more than $ 400,000, as he has limited funds, but is ready to close the deal quickly.
Answer
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Related questions
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Meg is negotiating a sales contract for selling the shirts manufactured by her company. She wants to use the interests-based approach for negotiation but she soon realizes that the other party is using the rights-based approach. Meg considers various possible strategies for refocusing the other party's approach toward interests. She suddenly remembers the study conducted by Goldberg and decides to select the strategy which was identified as the most effective strategy by that study. Based on this information, identify the strategy selected by Meg.
A) reciprocation
B) process intervention
C) behavioral reinforcement
D) mixed-message approach
Q:
According to Ury, Brett, and Goldberg, negotiators who focus on ________ attempt to learn about the other party's underlying needs, desires, and concerns.
A) power
B) capabilities
C) interests
D) rights
Q:
Which of the following statements is true regarding negotiation strategies?
A) If you want to discourage a competitive motivational orientation in the counterparty, you should reciprocate the competitive behavior.
B) People with a competitive orientation behave cooperatively when paired with a cooperative opponent.
C) The negotiating styles of people remain fixed.
D) The negotiating styles of the negotiators tend to converge during a negotiation.
Q:
Richard Shell has identified helpful strategies and tips designed for cooperative negotiators and competitive negotiators. Which of the following is one of the seven tools designed for a competitive negotiator?
A) being scrupulously reliable
B) avoiding concentrating too much on your bottom line
C) creating an audience
D) insisting on commitments, not just agreements
Q:
Focusing on rights can usually resolve the problem underlying the dispute more effectively than focusing on interests or power.
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Power is the ability to coerce someone to do something he or she would otherwise not do.
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Negotiators who are high in both epistemic and cooperative motivation develop greater trust and reach more integrative agreements than those low in cooperation or low in epistemic motivation.
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One of the fastest ways to extinguish a behavior is simply not to respond.
Q:
With reference to motivational orientations, cooperation represents a midpoint between altruism and aggression.
Q:
Which of the following is true for a presettlement settlement?
A) They are not binding on the negotiating parties.
B) They are permanent and cannot be changed.
C) They resolve all outstanding issues between the parties.
D) They are intended to be replaced at a later date.
Q:
To be effective, a contingency contract requires that there be ________.
A) no conflict of interest
B) one-time interaction
C) no difference of opinion
D) no enforceability
Q:
Which of the following most indicates that a party in a negotiation would be willing to accept a contingency contract?
A) The negotiators have the same strengths.
B) One of the negotiators has a loss-frame.
C) The negotiators have points for trade off.
D) Both negotiators share a gain-frame.
Q:
The first offer that ________ acts as a powerful anchor point in negotiation.
A) creates the focusing effect
B) falls within the bargaining zone
C) creates the chilling effect
D) sets low aspirations
Q:
During a negotiation which of the following is likely to result in greater profit?
A) making your first offer your final offer
B) focusing on avoiding negative outcomes
C) setting easy and nonspecific goals
D) setting high aspirations and focusing on them
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The positive difference between the settlement outcome and the bargainer's reservation point is the ________ surplus.
A) reservation
B) target
C) bargaining
D) negotiator's
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Equity is often used to allocate benefits, but equality is more commonly used to allocate burdens.
Q:
What does BATNA mean?
A) Best Alternative To Negate Aggression
B) Bargaining Assets To Negotiate an Agreement
C) Best Alternative To a Negotiated Agreement
D) Begin At The Negotiated Agreement
Q:
The ________ negotiator wants what the other party does not want to giveand does not want what the other party is willing to offer.
A) overaspiring
B) grass-is-greener
C) egocentric
D) underaspiring
Q:
At the negotiating table, Leo and David take opposite viewpoints of the matter in discussion. Leo takes offence at David's comments because he views any opposition as an ego threat. It is safe to assume that Leo is a(n) ________ negotiator.
A) cynical
B) accommodating
C) positional
D) intuitive
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Andrea, the CEO of a medium scale manufacturing company, is negotiating with the representatives of the employee's union. She accepts the demands of the union immediately to avoid a strike though the demands inflict a financial burden on the company. Andrea has acted as a(n) ________ negotiator in this negotiation.
A) underaspiring
B) overaspiring
C) positional
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Q:
Sam and Chelsea meet to negotiate a business arrangement between their companies. Chelsea has done a lot of research beforehand and is very well prepared for the meeting when compared to Sam. Sam believes that better solutions are arrived at through intuition, spontaneity, and working hard at the negotiation table. Whom do you think will be more successful at negotiating?
A) Neither because successful negotiation requires hard bargaining and very little preparation, intuition or spontaneity.
B) Chelsea, because the 8020 rule applies to negotiation: About 80% of your effort should go toward preparation; 20% should be the actual work involved in the negotiation.
C) Sam, because the 8020 rule applies to negotiation: About 20% of your effort should go toward preparation; 80% should be the actual work involved in the negotiation.
D) While preparation is important, whoever has the "killer instinct " will be more successful at negotiating, because the "killer instinct" plays a much bigger role in negotiation than preparation.
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A) cooperation; coercion
B) cooperation; gut feeling
C) competition; coercion
D) cooperation; competition
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Many people's BATNAs are uncertain because potential alternatives arrive sequentially.
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In a negotiation, the person who stands to gain the most by changing the other faction's mind should be the most persuasive.
Q:
What is a hidden table?
Q:
Briefly explain the overconfidence effect.
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What does the "time horizon" mean?
A) the amount of time till the negotiation terms will be held valid
B) the amount of time between the proposed terms and the acceptance of terms by the other party the amount of time
C) the amount of time taken for the negotiation terms to get sanctioned before they are formally proposed
D) the amount of time between negotiations and the realization of negotiated agreements
Q:
Two negotiators do not see eye to eye in their ideologies and fundamental beliefs. This is known as a(n) ________.
A) agreement bias
B) vertical conflict
C) consensus conflict
D) organizational conflict
Q:
What does a one-shot negotiation mean?
A) a negotiation which leads the other party to concede in the first attempt itself
B) a negotiation in which the deal does not entail any future ramifications accruing to the parties
C) a negotiation wherein there is only one aspiration point that needs to be dealt with
D) a negotiation wherein both the negotiating parties opt for a positional stance
Q:
Having mutually agreed to the negotiation terms put forth by each other, the negotiators of two firms cut a deal. However, there is always the risk associated with the willingness of the other party to honor its terms and live up to its contractual obligations. What risk is this known as?
A) operational risk
B) contractual risk
C) financial risk
D) company risk