Question 1

Which of the following is a reason to engage in bidding instead of negotiation?

Accepted Answer

A)   When any of the five prerequisite criteria for competitive bidding are absent
B)   When many variable factors bear not only on price but also on quality and service
C)   When the supplier is not involved in the design process
D)   When the business risks and costs cannot be predetermined
E)   When a customer firm is contracting for a portion of the seller's production capacityF) All of the above
G) C) and E)

Question 2

The primary determinate of the seller's bargaining strength is the size of the selling firm.

Accepted Answer

A) True 
 B)False

Question 3

Traditional cost objectives in a negotiation include all technical aspects of the purchase,buyer-furnished material and equipment and the mode of transportation.

Accepted Answer

A) True 
 B)False

Question 4

Among the major steps in the typical negotiation process are the following: preparation,establishment of objectives and face to face discussions

Accepted Answer

A) True 
 B)False

Question 5

Which of the following cannot be interpreted as a drawback to online negotiation?

Accepted Answer

A)   It is far easier to say 'no' in writing
B)   Psychological separation makes the termination of the relationship much easier
C)   Online negotiators are likely to feel a need to be more persuasive - more convincing
D)   A lack of nonverbal cues forces careful consideration of the impact of each word
E)   Can help focus on the issues separately from personalitiesF) C) and E)
G) C) and D)

Question 6

"Keeping the Initiative" is a transactional technique of negotiation.

Accepted Answer

A) True 
 B)False

Question 7

A murder board is a powerful preparation activity for an upcoming negotiation.

Accepted Answer

A) True 
 B)False

Question 8

In a negotiation,a maximum position is developed on the premise a large number of required seller actions will turn out unsatisfactorily and with maximum cost.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a determinate of the seller's bargaining strength?

Accepted Answer

A)   How many employees the company has as full time employees
B)   How badly the seller wants the contract
C)   How certain he or she feels of getting it
D)   How much time is available to reach agreement on suitable termsE) A) and B)
F) A) and C)

Question 10

Which of the following is not a general guideline for the debriefing that should occur after a negotiation has been completed?

Accepted Answer

A)   The debriefing should be done by managers other than the negotiation team
B)   Debriefing must be done in a timely manner, with accurate and timely feedback
C)   The debriefing should identify what was done well
D)   The debriefing should identify what could be improved upon
E)   The debriefing should document lessons learnedF) B) and E)
G) C) and E)

Question 11

Among the major steps in the typical bidding process are the following: preparation,establishment of objectives and face-to-face discussions

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not one of the transactional techniques of negotiation?

Accepted Answer

A)   Keep the Initiative
B)   Never Give Anything Away
C)   Frame the question
D)   Use positive statements
E)   The Dynamics of a Transactional NegotiationF) A) and D)
G) D) and E)

Question 13

Which of the following is a traditional cost objective in a negotiation?

Accepted Answer

A)   All technical aspects of the purchase
B)   Wage rates
C)   Types of materials and substitutes
D)   Buyer-furnished material and equipment
E)   The mode of transportationF) None of the above
G) A) and E)

Question 14

When a long period is required to produce the items purchased a company should engage in negotiation instead of bidding.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a traditional non-cost objective in a negotiation?

Accepted Answer

A)   Factory overhead
B)   Engineering expense
C)   Tooling expense
D)   Administrative expense
E)   Warranty terms and conditionsF) A) and D)
G) B) and D)

Question 16

Traditional non-cost objectives in a negotiation include quantity of labor,wage rates,and quantity of materials.

Accepted Answer

A) True 
 B)False

Question 17

"Using Debate Techniques" is a universally applicable technique of negotiation.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not an advantage of online negotiation?

Accepted Answer

A)   Can help focus on the issues separately from personalities
B)   Psychological separation makes the termination of the relationship much easier
C)   Brainstorming may be more productive
D)   Online communication can free the buyer and supplier from location dependency
E)   If the negotiation is not being done "live" on the Internet, the time for conducting the negotiations is relatively flexibleF) D) and E)
G) A) and E)

Question 19

In a negotiation,a maximum position is developed on the premise that every required seller action will turn out satisfactorily.

Accepted Answer

A) True 
 B)False

Question 20

Two of the reasons to engage in bidding instead of negotiation are when many variable factors bear not only on price but also on quality and service and when the business risks and costs cannot be predetermined.

Accepted Answer

A) True 
 B)False

Exam 16: Negotiation

When a long period is required to produce the items purchased a company should engage in negotiation instead of bidding.

Correct AnswerverifiedShow Answer

Traditional non-cost objectives in a negotiation include quantity of labor,wage rates,and quantity of materials.

Correct AnswerverifiedShow Answer

In a negotiation,a maximum position is developed on the premise that every required seller action will turn out satisfactorily.

Correct AnswerverifiedShow Answer

"Keeping the Initiative" is a transactional technique of negotiation.

Correct AnswerverifiedShow Answer

A murder board is a powerful preparation activity for an upcoming negotiation.

Correct AnswerverifiedShow Answer

Two of the reasons to engage in bidding instead of negotiation are when many variable factors bear not only on price but also on quality and service and when the business risks and costs cannot be predetermined.

Correct AnswerverifiedShow Answer

Which of the following is not one of the transactional techniques of negotiation?

Correct AnswerverifiedShow Answer

Among the major steps in the typical bidding process are the following: preparation,establishment of objectives and face-to-face discussions

Correct AnswerverifiedShow Answer

Which of the following is not an advantage of online negotiation?

Correct AnswerverifiedShow Answer

Among the major steps in the typical negotiation process are the following: preparation,establishment of objectives and face to face discussions

Correct AnswerverifiedShow Answer

Which of the following is not a general guideline for the debriefing that should occur after a negotiation has been completed?

Correct AnswerverifiedShow Answer

Which of the following cannot be interpreted as a drawback to online negotiation?

Correct AnswerverifiedShow Answer

In a negotiation,a maximum position is developed on the premise a large number of required seller actions will turn out unsatisfactorily and with maximum cost.

Correct AnswerverifiedShow Answer

Which of the following is a traditional cost objective in a negotiation?

Correct AnswerverifiedShow Answer

"Using Debate Techniques" is a universally applicable technique of negotiation.

Correct AnswerverifiedShow Answer

Which of the following is a reason to engage in bidding instead of negotiation?

Correct AnswerverifiedShow Answer

Which of the following is a traditional non-cost objective in a negotiation?

Correct AnswerverifiedShow Answer

The primary determinate of the seller's bargaining strength is the size of the selling firm.

Correct AnswerverifiedShow Answer

Which of the following is not a determinate of the seller's bargaining strength?

Correct AnswerverifiedShow Answer

Traditional cost objectives in a negotiation include all technical aspects of the purchase,buyer-furnished material and equipment and the mode of transportation.

Correct AnswerverifiedShow Answer

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