Sample/practice exam 2017, questions PDF

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Examination No: ________________________

Negotiation Sample Examination Paper

The class exam is a paper of 50 minutes' duration. There are 25 questions, please attempt to answer each one. Correct answers will be awarded 2 points (plus two), incorrect answers -1 point (negative one), and blank answers will receive 0 points (zero). This exam accounts for 30% of the final mark for the course.

PLEASE WRITE YOUR EXAMINATION NUMBER AT THE TOP OF THE EXAMINATION PAPER IN THE SPACE PROVIDED AND ON THE MULTIPLE CHOICE SHEET.

1

The Batna and reservation price: a. b. c. d. e.

2.

I have been offered £5,000 by Ms Y for a second-hand car that I am selling. I would like to get at least £6,000 and have told Ms Y I will accept no offer less than £6,000. In the presence of Ms Y, I have made a bet with Mr. Z that if I sell the car for less than £6,000 I will pay Mr. Z £1,000. In terms of getting at least £6,000 from Ms Y has my arrangement with Mr. Z: a. b. c. d. e.

3.

are one and the same thing. are always different can be different the Batna is always lower than the reservation price. the reservation price is always lower than the Batna.

needlessly complicated matters. caused Y to reduce her offer below £5,000. persuaded Y that I am unsure what I want. strengthened my bargaining position. created an impression of weakness.

As a buyer, if I pay my maximum buy (reservation) price for an item, I am: a. b. c.

happier after the deal than I was before. less happy after the deal than I was before. just as happy after the deal as I was before. 2

d. e. 4.

Transaction utility suggests that: a. b. c. d. e.

5.

the upper-class type of person the working-class type of person the class they were born into. someone close to their own ability someone who is always below them in ability.

Framing is a phenomenon which: a. b. c. d. e.

8.

keeping everything secret and confidential to the parties is always best. being frank and open in terms of public disclosure is always best. the public has a right to know. privacy is paramount. secrecy is sometimes best, and public disclosure is sometimes best.

In making social comparisons people always refer to: a. b. c. d. e.

7.

the satisfaction from an item is dependent on the perceived quality of the deal. utility is lowered by an amount equivalent to the transaction costs utility is raised by an amount equivalent to the transaction costs utility can be derived from the transaction cost itself. transaction costs and utility are one and the same thing.

In negotiation: a. b. c. d. e.

6.

feeling I am a pretty good negotiator. feeling the deal was unfair.

spans the entire Zopa. allows one to move from one end of the Zopa to the other. is sure to irritate one's opponent. can cause one's opponent to evaluate a deal in a particular way. is best left to artists

Non-rational escalation of commitment can be due to: a. b. c. d. e.

being very competitive. being desperately keen to secure an item. knowing the item is worth a lot. having enough money to buy the object. perceptual or judgmental biases.

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9.

In communication, ‘active listening’ is: a. b. c. d. e.

10.

The “negotiator’s dilemma”: a. b. c. d. e.

11.

integrative has more parties involved. the magnitudes involved are larger in integrative negotiation. there are more issues involved in integrative negotiation. integrative negotiation involves creating and claiming value. integrative negotiation involves only claiming value.

In terms of helping gain credibility in negotiation which of the following is not of any particular help. a. b. c. d. e.

13.

tends to undermine the “win-win” negotiation approach. is a text-book example of something that hardly ever arises in practice. usually besets parties who repeatedly negotiate with each other. is whether to open first or to wait for the counterparty to open. is whether to close the deal or to push for one more concession.

The difference between a distributive negotiation and an integrative negotiation is: a. b. c. d. e.

12.

agreeing with what the other person says. speaking to be heard. encouraging the other person to do all the talking. deploying the appropriate body language but saying little. summarising and paraphrasing to ensure the other’s message has been received.

reputation. mandating negotiating agents. burning bridges. cutting off communication. speaking in assertive and abusive tones.

First-mover advantage in negotiation is: a. b. c. d. e.

a version of first-come, first-served. allowing the first mover to restrict the moves available to the second mover. allowing the first mover to give a good example to the second mover. one of the advantages of Fisher & Ury’s Getting to Yes approach. something strikers in soccer are meant to have.

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14.

In multi-party, multi-issue negotiations, control of the agenda: a. b. c. d. e.

15.

A alone can secure B alone can secure C alone can secure A and B alone can secure A and C alone can secure B and C alone can secure A and B and C alone can secure a. b. c. d. e.

16.

0 0 0 60 20 30 80

A=50, B=5, C=25 is a stable agreement A=30, B=40, C=10 is a stable agreement. A=5, B=65, C=10 is a stable agreement. A=65, B=5, C=10 is a stable agreement. A=40, B=15, C=25 is a stable agreement.

What is a coalition? a. b. c. d. e.

17.

is best given to the person with the neatest writing. is a matter of little consequence. will emerge in a natural way. gives a negotiating party considerable power. is a distraction from the major issues.

a sub-grouping of the parties. a binding agreement of any sort. a binding agreement between principals. a binding agreement between agents. a way of avoiding conflict.

According to Fisher and Ury, "Soft on people, firm on the issue" is: a. b. c. d. e.

New Labour's approach to negotiation. a recipe for disaster. useful approach. only appropriate in certain circumstances. an old-fashioned approach.

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18.

In negotiation terms, in the video clip of "The Greek Debt Crisis ", Yanis Varoufakis appears as: a. b. c. d. e.

19.

If the agreed probability of the pursuer's claim being found at trial to be valid is 0.75, and if the expected damages awarded in the event of such success is £10,000, and if each side spends £4,000 on legal costs, then under the English rule expected cost to the defender from going to trial: a. b. c. d. e.

20.

£3,500. £5,500. £9,500. £11,500. £13,500.

If the agreed probability of the pursuer's claim being found at trial to be valid is 0.75, and if the expected damages awarded in the event of such success is £10,000, and if each side spends £4,000 on legal costs, then under the English rule expected gain to the pursuer from going to trial: a. b. c. d. e.

21.

an arbitrator. a mediator. a complete prat. an authority figure. an agent.

£3,500. £5,500. £9,500. £11,500. £13,500.

If the agreed probability of the pursuer's claim being found at trial to be valid is 0.75, and if the expected damages awarded in the event of such a success if £10,000, and if each side spends £4,000 on legal costs, and if the defender has lodged a tender of £6,000 where there is a 25% chance of the judge's award (when the claim is found valid) being at or below this level, what is the expected gain under the American rule to the pursuer from going to trial: a. b. c. d. e.

£2,500 £2,750 £4,000. £10,500. £12,000.

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22.

In the “negotiating in the shadow of the law” model, a move to allow pursuer's to make offers to settle, whereby there is a penalty on the defender if the defender rejects such an offer but the judge subsequently makes an award in excess of such an offer, will have the effect of: a. b. c. d. e.

23.

According to Sir John Hicks, the majority of strikes are doubtless the result of: a. b. c. d. e.

24.

bloody-minded trade unions. sleepy-headed management. rampant inflation. trade union member militancy. faulty negotiations.

Which of the following is NOT a culture-specific consideration in negotiation: a. b. c. d. e.

25.

narrowing the zone of possible agreement. leaving most of the negotiating power with the defender. moving the parties apart. increasing the negotiating power of the pursuer. increasing the negotiating power of the defender.

Power-distance Individualism-collectivism. Uncertainty avoidance. Egalitarian versus hierarchical cultures. Knowing your BATNA.

In electronic negotiation: a. b. c. d. e.

parties are more likely to make cognitive errors. reaching a negotiated outcome will be quicker. people will dress more formally. is always better. negotiated outcomes will be less influenced by social status.

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