Finance

Q: The presence of third parties usually ________. A) escalates the tension in negotiation situations, if the initial parties believe that third parties will favor their own position B) escalates the tension in negotiation situations, if the initial parties believe third parties will not favor the other party's position C) defuses the tension in negotiation situations, if third parties believe that the initial parties will favor their own position D) defuses the tension in negotiation situations, if third parties believe that the initial parties will not favor their own position

Q: 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: Negotiators tend to ________. A) correctly predict the consequences of final deadlines in negotiation B) incorrectly predict the consequences of final deadlines in negotiation C) focus on deadlines' effect on others more than themselves D) avoid focusing on deadlines' effect on themselves

Q: Why do negotiators avoid revealing their deadlines? A) because they think that it will not have any impact on the negotiations B) because they think that the other party cannot take advantage of the situation C) because they think that it will be construed as a strategic weakness D) because they think that they can concede at their convenience

Q: What does ratification mean? A) the process of rating the aspiration point on a priority basis B) the process of getting a contract approved by some other group C) the process of deferring the deadline for negotiation D) the process of settling a dispute in negotiation process

Q: What does the linkage effect mean in negotiations? A) the fact that some negotiations affect other negotiations B) the effect of a negotiation done out of luxury C) no effect of a negotiation in other negotiations D) the effect of negotiation done out of necessity

Q: When the negotiation is a transaction situation, ________. A) the parties involved take legal recourse to reach a settlement B) the parties involved annul the negotiation C) the parties involved take recourse to their BATNAs D) the parties involved do not take recourse to their BATNAs

Q: Negotiations can arise from either necessity or ________. A) opportunity B) goodwill C) competition D) consensus

Q: What are the two types of conflicts commonly witnessed in negotiations? A) functional benefits and consensus conflict B) line staff conflict and functional conflict C) line staff conflict and scarce resource competition D) consensus conflict and scarce resource competition

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: What is a monolithic party? A) a party which is entirely owned and controlled by one person at the top dictating the negotiation terms and aspirations B) a party whose members are unanimous in their negotiation terms and aspirations C) a party which is owned and controlled by multiple people at the top who determine the negotiation terms and aspirations D) a party whose members are not unanimous in their negotiation terms and aspirations

Q: 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 C) counterfactual thinking D) critical thinking

Q: Negotiators' ________ may lead buyers and sellers to have different valuations for objects. A) reference points B) reservation points C) focal points D) sunk costs

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

Q: What risks must negotiators consider while preparing for negotiations? A) operational risk, BATNA risk, compliance risk B) financial risk, operational risk, BATNA risk C) compliance risk, strategic risk, financial risk D) BATNA risk, strategic risk, contractual risk

Q: A reference point defines what a person considers to be a ________. A) liability B) break even C) resource D) profit

Q: Should a negotiator have multiple issues in his negotiation? A) No, as this can confuse the negotiator as to what terms must be included in the final agreement. B) Yes, as this way the negotiator is considered as not being positional. C) No, as this way the negotiator is considered as being positional. D) Yes, as this way the negotiator may end up conceding prematurely.

Q: What does premature concession mean? A) when a negotiator decides to make concessions in the terms before the lapse of the agreement period B) when a negotiator loses ground by to the other party by spelling out her or his alternative terms before required C) when a negotiator makes concessions in the terms before it can be ratified D) when a negotiator makes concessions in the terms at the eleventh hour

Q: Jennifer, the sales manager of a firm, does not plan well in advance for her negotiations with clients. Her negotiation often focuses on an arbitrary value that she fixes before the negotiation as a reservation price. This arbitrary value is called a ________. A) focal point B) reference point C) cost point D) fleeting target

Q: Issues with single agendas are often ________ in nature. A) fixed sum B) integrative C) lose-lose D) win-win

Q: Analyze the following statements and choose the correct option. Statement 1: Negotiators should ensure that they do not focus on a single issue during negotiations. Statement 2: Negotiations centered on a particular problem are purely fixed-sum. A) Statement 2 is true but statement 1 is false. B) Statement 1 and statement 2 are true but statement 2 does not explain statement 1. C) Statement 1 is true but statement 2 is false. D) Statement 1 and statement 2 are true and statement 2 explains statement 1.

Q: ________ cost is money invested in the past which is not retrievable in the present. A) Opportunity B) Sunk C) Product D) Explicit

Q: What do you understand by the term "focal point"? A) the target of the negotiator who suffers from confirmation bias B) the target points of the negotiator that he or she must focus on solely C) the target of the negotiator who is egocentric D) the target of the negotiator who fails to prepare a reservation point

Q: While preparing for negotiations, the negotiator fails to evaluate his reservation points. What downside can the negotiation process have? A) the negotiators accepting an offer worse than their BATNA B) the negotiators rejecting an offer worse than their BATNA C) the negotiators demonstrating behavior of reactive devaluation D) the negotiators accepting an offer better than their BATNA

Q: A reservation point is a ________ of a negotiator's BATNA with respect to other alternatives. A) modification B) qualification C) validation D) quantification

Q: Can egocentrism be considered the same as self-reinforcing incompetence? Why or why not?

Q: What are the major shortcomings in negotiations?

Q: A highly experienced negotiator credits his successes solely to his spontaneous gut feeling. His attitude pertains to the myth that ________. A) negotiations are fixed sum B) negotiation skills are god-gifted C) good negotiators rely on intuition D) experienced negotiators have accuracy

Q: The negotiators of a company use a "tough" style of negotiation in the hope that the other party will capitulate. The negotiators of the company can be said to exhibit the myth that ________. A) negotiators end up settling for too little or too much B) aggressive negotiators have a history of successful deals C) negotiators consider whatever good as bad for the other party D) good negotiators take grave risks

Q: Negotiators with a string of successful acquisitions and very few failures develop great confidence in the accuracy of their skills. This is an illustration of the myth that ________. A) negotiators need to believe in their gut feelings B) experience improves confidence, but not necessarily accuracy C) negotiators always have astute judgment D) negotiators are innately gifted

Q: Which of the following statements is true? A) Feedback can be largely ineffective in improving negotiation skills. B) People tend to remember their failures. C) Success adds to experience which always improves our ability to negotiate. D) Experienced people can have inaccurate judgment.

Q: Effective negotiation requires ________ and ________. A) inherent skills; feedback B) practice; feedback C) practice; performance D) inherent skills; practice

Q: In a desperate bid to see the negotiation through, a manager concedes to all of the demands and requests of the other party. However, there is nothing asked for on a quid pro quo basis. He deems the negotiation a success, having finally clinched the deal. What negotiation myth has the manager succumbed to? A) negotiators need to be trusting of the other party B) negotiators just need to get the deal through, irrespective of other factors C) negotiators need to be either tough or soft D) negotiators need to work independently to make the process a success

Q: According to Walton and McKersie's conceptualization, negotiation is a ________. A) single-motive enterprise B) mixed-motive enterprise C) purely cooperative enterprise D) purely competitive enterprise

Q: According to the negotiation myth of fixed-pie, ________. A) what is settled for must be achieved by hook or by crook B) the party with a distinct advantage can throw its weight around C) the very fact that causes one to lose ground causes the other to gain ground D) negotiators are born and cannot be made

Q: The negotiators working on a deal have come to the conclusion that whatever is good for one person must ipso facto be bad for the other party. What myth can be attributed to this conclusion? A) myth of fixed nature B) myth of self-perpetuation C) myth of innate negotiation skills D) myth of fixed sum

Q: 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

Q: What is meant by satisficing? A) setting high aspirations and attempting to achieve as much as possible B) achieving the same as what one had settled for C) achieving effectively the same but getting something entirely different from what one had settled for D) settling for something less than what one could otherwise have

Q: 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

Q: Which term has Herb Simon been credited with? A) greenwashing B) cocooning C) satisficing D) social loafing

Q: Three weeks into the 2010 BP Deepwater Horizon oil disaster, the former chief executive of BP, Tony Hayward, downplayed the looming environmental disaster despite mounting evidence to the contrary. Hayward claimed the spill in Gulf of Mexico was "relatively tiny" compared with the "very big ocean." This is an example of a(n) ________. A) personal bias B) analysis bias C) confirmation bias D) experience bias

Q: Two-thirds of MBA students rank their decision-making abilities as above average. What are they said to exhibit? A) selfishness B) egomania C) self-serving tendencies D) egocentrism

Q: People who are self-absorbed in terms of reflecting upon their own values are more likely to exhibit decision-making biases, such as the ________. A) experience bias B) confirmation bias C) self bias D) analysis bias

Q: A failure in the process of negotiation can be attributed to certain factors. Identify the four fundamental problems associated with negotiations. A) egocentrism, confirmatory information processing, satisficing, and self-reinforcing incompetence B) over expectation, egocentrism, optimizing, and self-reinforcing incompetence C) satisficing, confirmatory information processing, cynicism, and optimization D) over expectation, egocentrism, self-reinforcing incompetence, optimizing

Q: What does the agreement bias refer to? A) agreeing to something desirable B) agreeing to all offered conditions C) agreeing to something worse than the alternative D) agreeing to nothing

Q: Florotron Corporation, a manufacturer of electronic appliances, invites tenders for placement systems and screen printers. The company shortlists two companies, after screening the tenders received. After negotiating with the representatives of both the companies, Florotron enters a contract with Company 1. They later realize that they had miscalculated the offers from Company 2 and it offered better terms. Which of the following shortcomings of negotiation is evident from this? A) leaving money on the table B) settling for too little C) walking away from the table D) agreement bias

Q: An experienced negotiator of a company manages to convince his counterpart about the terms and conditions that are being put forward. Though this puts the other negotiator at a distinct disadvantage, he or she feels compelled to accept the resolution. What is this situation known as? A) agreement bias B) lose situation C) loser's curse D) winners curse

Q: Abraham, the CEO of a consulting firm, leads the employees of the firm. He is involved in almost all of the critical negotiations that the company engages in. He is also involved in a variety of activities such as HR planning, marketing communication etc. Which of the following tasks, if performed by Abraham, would increase the chances of a confirmation bias? A) Abraham is allowed to appraise his own performance when reviews are conducted. B) Abraham is the ultimate authority who decides the allocation of the company's funds. C) Abraham is often involved in the recruitment and selection of managers. D) Abraham, being a finance graduate, also functions as the CFO of the firm.

Q: Identify an instance where the second statement explains the reason for the first statement. A) Statement 1: Negotiations ended in a "walking away from the table" situation. Statement 2: The negotiator was driven by hubris. B) Statement 1: Negotiators failed to recognize and capitalize on their win-win potential. Statement 2: Negotiation was conducted in a protected environment. C) Statement 1: One of the negotiators made large concessions, resulting in a too-small share of the bargaining pie. Statement 2: The negotiator was driven by pride and ego. D) Statement 1: The best alternative was not chosen in a negotiation. Statement 2: Both the parties were not interested in the outcome of the negotiation.

Q: Santor Hydroelectric Corporation engages in the acquisition, development, and operation of hydroelectric power projects in China. In order to perform large scale annual maintenance works at one of its facilities, the company initiates discussions with Albama Associates, a large maintenance company. The associates of both the companies are unable to arrive at a consensus on the pricing and other terms. Albama finally decides to decline the offer although it is an extremely profitable one. Which of the following traps of negation has occurred here? A) leaving money on the table B) settling for too little C) walking away from the table D) agreement bias

Q: What are the four kinds of negotiation traps? A) agreement bias, loser's curse, walking away from the table, Dutch auction situation B) winner's curse, Dutch auction situation, win-lose situation, disagreement bias C) walking away from the table, disagreement bias, loser's curse, lose-lose negotiation D) lose-lose negotiation, winner's curse, agreement bias, walking away from the table

Q: Unable to arrive at common ground, the negotiators end up rejecting the terms offered by the other although the option offered is demonstrably better than any other option available to them. What is this shortcoming better known as? A) turning away from the table B) turning one's back from the table C) walking away from the table D) running away from the table

Q: What does the term "winner's curse" imply? A) negotiators optimistically settling for an undervalued deal B) negotiators knowingly settling for an undervalued deal C) negotiators settling for all the terms laid down by the other party D) negotiators settling for none of the terms laid down by the other party

Q: While finalizing the deal, the negotiators end up making big concessions that leave one of them with a paltry share of the bargaining pie. What situation is being referred to here? A) the winner's curse B) the win-lose situation C) the no-win situation D) the Dutch auction situation

Q: The negotiation process of two corporate giants ends with both leaving money on the table. This situation is known as a ________. A) win-lose situation B) lose-lose situation C) win-win situation D) no win situation

Q: Which of the following best describes one of the major shortcomings in negotiation: leaving money on the table? A) making large concessions that result in a small share of the bargaining pie B) failing to recognize and capitalize on their win-win potential C) rejecting terms of offer that are better than other options available D) feeling obligated to accept an agreement despite better alternatives being available

Q: Does globalization present a challenge in negotiation? A) No, it does not as globalization has eliminated the challenges pertaining to norms of communication while conducting negotiations. B) Yes, it does as there can be challenges pertaining to norms of communication while conducting negotiations. C) Yes, it does as most managers are not required to effectively cross cultural boundaries to do their jobs. D) No, as most negotiators have developed a bargaining style that works only within a narrow subset of the business world.

Q: Which of the following factors has created a culture of 24/7 availability? A) information technology B) marketing tools C) economic infrastructure D) product diversification

Q: What change in the business world has necessitated that people be more and more dependent on others? A) increased labor requirement B) increasing specialization C) rise in unemployment D) centralized business structures

Q: What does the increasing interdependence of people, both laterally and hierarchically, within organizations imply? A) that people need to know how to communicate well in different languages B) that people need to know how to play different organizational roles C) that people need to know how to further their interests independently D) that people need to know how to integrate their interests and work across business units and functional areas

Q: "Most people do not stay in the same job that they take upon graduating from college or receiving their MBA degree. Sixty percent of younger workers said it is not very likely or not likely at all that they will stay with their current employers for the remainder of their working life." Which of the following best supports this statement? A) People are fickle and get bored easily. B) Negotiating with higher ups is not encouraged with most organizations. C) People's interests are not always in alignment with the interests of the organizations. D) Working for more companies provides more financial incentives than working for one.

Q: What makes it necessary for people to renegotiate their existence in organizations throughout their careers? A) the static nature of business B) hierarchical decision making C) the existence of centralized business structures D) the dynamic nature of business

Q: What do negotiations essentially boil down to? A) people, communication, influence B) communication, profits, advertising C) influence, advertising, design D) design, communication, profits

Q: Which of the following statements comes closest to defining negotiation? A) Negotiation is a process of assessing the correctness of a decision or a plan. B) Negotiation is a means of interchanging thoughts, opinions, and information. C) Negotiation is a means of achieving one's objectives through interpersonal relationships. D) Negotiation is the process of distorting something so it appears to be something entirely different.

Q: Which of the following is considered a key communication and influence tool inside and outside the company? A) negotiation B) delegation C) compensation D) motivation

Q: Experience improves our confidence and accuracy.

Q: One of the biggest myths is that effective negotiation skills are something that people are born with.

Q: The truly effective negotiator is either tough as nails or soft as pudding.

Q: Effective negotiators consider partial trust as being detrimental to negotiations.

Q: Managers tend to be enthusiastic when it comes to experimenting with change since going off the beaten track is very likely to render fruitful results to negotiations.

Q: CEOs overly attribute their influence when deals are successful and this trait often leads CEOs to make more deals that are successful.

Q: Satisficing, if done thoughtfully, can be beneficial both for individuals and companies as negotiation strategies and skills can be cheaply employed to dramatically increase profit.

Q: People who had taken time to focus on values that were not important to them were less likely to focus on valid threats. Hence, their assessments of correlations in the data eventually proved to be erroneous and inaccurate.

Q: Managers need to develop negotiation skills that are general enough to be used across different contexts but specialized enough to provide meaningful behavioral strategies in a given situation. Most managers do not consider this an uphill task.

1 2 3 … 2,046 Next »

Subjects