SCM CH 13 Questions with 100%
Correct Answers
T/F: Everyone negotiates something every day Correct Answer: true
T/F: Negotiation is a simple skill that applies to only a few purchasing and supply
managers. Correct Answer: false
T/F: Negotiation is noncritical means to convey the buyer's specific sourcing
requirements and specifications to its supply base. Correct Answer: false
T/F: An important part of negotiation is realizing that the process involves
relationships between people, not just organizations. Correct Answer: true
T/F: An integral part of negotiation involves each party trying to persuade the
other party to do something that is in its best interests Correct Answer: true
T/F: A negotiator should ensure that his or her BATNA is revealed to the other
party, because the final settlement is unlikely to vary much from that point.
Correct Answer: false
T/F: All negotiation settlements must ultimately be judged in light of the other
viable alternatives that existed at the time of the agreement. Correct Answer:
true
T/F: Sharing the underlying interests behind a position may cause a negotiator's
power to shift toward the other party, ultimately resulting in a less than desired
outcome. Correct Answer: true
T/F: To reach a negotiated agreement using principled negotiation, a
negotiator should always focus on the other party's stated position, not his or her
underlying interests. Correct Answer: false
,T/F: When a negotiator is planning an upcoming negotiation, it is imperative to
prioritize all of the potential issues to be negotiated into needs and wants,
thereby knowing what must be achieved and what can be exchanged for
something else of value. Correct Answer: true
T/F: It is easy to develop common ground in the negotiation without knowing
what the other party is seeking. Correct Answer: false
T/F: A negotiator can automatically assume that the other party thinks the same
way he or she does. Correct Answer: false
T/F: The purchasing cycle begins with identifying (or anticipating) a specific
need or requirement for a part component, raw material, subassembly, service,
piece of equipment, or finished good to be sourced to conduct or support
organizational operations. Correct Answer: true
T/F: All purchase requirements will require buyers and sellers to conduct a
thorough, detailed, and time-consuming negotiation Correct Answer: false
T/F: Negotiation is more appropriate when other issues besides price are
important or when competitive bidding will not satisfy the buyer's requirements
on various issues. Correct Answer: true
T/F: All buyer-supplier negotiations are relatively straightforward, only requiring
rudimentary preparation and planning. Correct Answer: false
T/F: Deciding the physical location of where to negotiate is an unimportant part
of any planning process. Correct Answer: false
T/F: Excessive formality in negotiation can effectively constrain the parties and
restrict the free exchange of ideas and solutions. Correct Answer: true
,T/F: Packaging issues together risks undermining an entire negotiation if the
parties reach impasse on a single issue within the linked proposal. Correct
Answer: true
T/F: Effective negotiators are unwilling to make counterproposals Correct
Answer: false
T/F: Good negotiators know that reaching agreement is the end of the
negotiation process. Correct Answer: false
T/F: Many negotiators fail to prepare adequately before entering into a formal
negotiation oftentimes because of a very short timeframe in which to make a
deal. Correct Answer: true
T/F: Before actual negotiations begin, the parties need to believe realistically
that they can reach an agreement. Correct Answer: true
T/F: Experienced negotiators do not need to understand their counterparts
through research and experience. Correct Answer: false
T/F: Analyzing the other party requires a thorough assessment of the relative
strengths and weaknesses of the parties, as well as the particulars for each
individual issue to be negotiated. Correct Answer: true
T/F: The issues that are most critical to a supplier are likely to be those most
critical to a buyer. Correct Answer: false
T/F: The bargaining zone represents the heart of the negotiation process, as any
proposal or counterproposal offered outside of this range is likely to be rejected
by the other party because it is not what he or she is willing to settle for. Correct
Answer: true
, T/F: A procurement negotiation seldom affects other stakeholders throughout
the organization who have an interest in or will be affected by the negotiation
outcomes. Correct Answer: false
T/F: An experienced negotiator does not need to practice or rehearse a
complex negotiation before commencing the formal negotiation. Correct
Answer: false
T/F: The effective use of information in a negotiation does not necessarily mean
open and complete sharing. Correct Answer: true
T/F: There is minimal likelihood that retaliation or escalation will occur if the
power structure shifts unfavorably in the future. Correct Answer: false
T/F: Referent power is most successful in negotiation when the referents are
aware that a counterpart identifies with or has an attraction to them. Correct
Answer: true
T/F: For the effective negotiator, it is acceptable to give away any concession
without getting something of equal or greater value in return. Correct Answer:
false
T/F: It is unimportant for the negotiator to have adequately prepared and
established a thoughtful BATNA for each issue until after the negotiation has
begun. Correct Answer: false
T/F: The manner in which a negotiator approaches concession making is an
important part of every successful negotiation strategy. Correct Answer: true
T/F: A willingness to offer large concessions is always in the best interests of a
buyer. Correct Answer: false
Correct Answers
T/F: Everyone negotiates something every day Correct Answer: true
T/F: Negotiation is a simple skill that applies to only a few purchasing and supply
managers. Correct Answer: false
T/F: Negotiation is noncritical means to convey the buyer's specific sourcing
requirements and specifications to its supply base. Correct Answer: false
T/F: An important part of negotiation is realizing that the process involves
relationships between people, not just organizations. Correct Answer: true
T/F: An integral part of negotiation involves each party trying to persuade the
other party to do something that is in its best interests Correct Answer: true
T/F: A negotiator should ensure that his or her BATNA is revealed to the other
party, because the final settlement is unlikely to vary much from that point.
Correct Answer: false
T/F: All negotiation settlements must ultimately be judged in light of the other
viable alternatives that existed at the time of the agreement. Correct Answer:
true
T/F: Sharing the underlying interests behind a position may cause a negotiator's
power to shift toward the other party, ultimately resulting in a less than desired
outcome. Correct Answer: true
T/F: To reach a negotiated agreement using principled negotiation, a
negotiator should always focus on the other party's stated position, not his or her
underlying interests. Correct Answer: false
,T/F: When a negotiator is planning an upcoming negotiation, it is imperative to
prioritize all of the potential issues to be negotiated into needs and wants,
thereby knowing what must be achieved and what can be exchanged for
something else of value. Correct Answer: true
T/F: It is easy to develop common ground in the negotiation without knowing
what the other party is seeking. Correct Answer: false
T/F: A negotiator can automatically assume that the other party thinks the same
way he or she does. Correct Answer: false
T/F: The purchasing cycle begins with identifying (or anticipating) a specific
need or requirement for a part component, raw material, subassembly, service,
piece of equipment, or finished good to be sourced to conduct or support
organizational operations. Correct Answer: true
T/F: All purchase requirements will require buyers and sellers to conduct a
thorough, detailed, and time-consuming negotiation Correct Answer: false
T/F: Negotiation is more appropriate when other issues besides price are
important or when competitive bidding will not satisfy the buyer's requirements
on various issues. Correct Answer: true
T/F: All buyer-supplier negotiations are relatively straightforward, only requiring
rudimentary preparation and planning. Correct Answer: false
T/F: Deciding the physical location of where to negotiate is an unimportant part
of any planning process. Correct Answer: false
T/F: Excessive formality in negotiation can effectively constrain the parties and
restrict the free exchange of ideas and solutions. Correct Answer: true
,T/F: Packaging issues together risks undermining an entire negotiation if the
parties reach impasse on a single issue within the linked proposal. Correct
Answer: true
T/F: Effective negotiators are unwilling to make counterproposals Correct
Answer: false
T/F: Good negotiators know that reaching agreement is the end of the
negotiation process. Correct Answer: false
T/F: Many negotiators fail to prepare adequately before entering into a formal
negotiation oftentimes because of a very short timeframe in which to make a
deal. Correct Answer: true
T/F: Before actual negotiations begin, the parties need to believe realistically
that they can reach an agreement. Correct Answer: true
T/F: Experienced negotiators do not need to understand their counterparts
through research and experience. Correct Answer: false
T/F: Analyzing the other party requires a thorough assessment of the relative
strengths and weaknesses of the parties, as well as the particulars for each
individual issue to be negotiated. Correct Answer: true
T/F: The issues that are most critical to a supplier are likely to be those most
critical to a buyer. Correct Answer: false
T/F: The bargaining zone represents the heart of the negotiation process, as any
proposal or counterproposal offered outside of this range is likely to be rejected
by the other party because it is not what he or she is willing to settle for. Correct
Answer: true
, T/F: A procurement negotiation seldom affects other stakeholders throughout
the organization who have an interest in or will be affected by the negotiation
outcomes. Correct Answer: false
T/F: An experienced negotiator does not need to practice or rehearse a
complex negotiation before commencing the formal negotiation. Correct
Answer: false
T/F: The effective use of information in a negotiation does not necessarily mean
open and complete sharing. Correct Answer: true
T/F: There is minimal likelihood that retaliation or escalation will occur if the
power structure shifts unfavorably in the future. Correct Answer: false
T/F: Referent power is most successful in negotiation when the referents are
aware that a counterpart identifies with or has an attraction to them. Correct
Answer: true
T/F: For the effective negotiator, it is acceptable to give away any concession
without getting something of equal or greater value in return. Correct Answer:
false
T/F: It is unimportant for the negotiator to have adequately prepared and
established a thoughtful BATNA for each issue until after the negotiation has
begun. Correct Answer: false
T/F: The manner in which a negotiator approaches concession making is an
important part of every successful negotiation strategy. Correct Answer: true
T/F: A willingness to offer large concessions is always in the best interests of a
buyer. Correct Answer: false
