BPTC Negotiation Skills 1

Question 1

What does 'BATNA' stand for in negotiation theory?

Accepted Answer

Best Alternative To a Negotiated Agreement

Answer

BATNA (Best Alternative To a Negotiated Agreement) is the most advantageous course of action available to a party if negotiations fail to produce a deal.

Question 2

In principled negotiation (the Harvard approach), which of the following is NOT one of the four key principles?

Accepted Answer

Focus on positions rather than interests

Answer

Principled negotiation specifically advocates focusing on underlying interests rather than stated positions; positional bargaining is exactly what the Harvard approach seeks to move away from.

Question 3

What is the 'Zone of Possible Agreement' (ZOPA) in negotiation?

Accepted Answer

The overlap between each party's reservation prices within which a deal can be struck

Answer

ZOPA is the range between the parties' respective reservation prices (walk-away points) where a mutually acceptable agreement is possible.

Question 4

Which negotiation style treats the negotiation as a zero-sum game where one party's gain is the other's loss?

Accepted Answer

Distributive negotiation

Answer

Distributive (or positional/competitive) negotiation involves dividing a fixed resource so that one party's gain necessarily comes at the other party's expense.

Question 5

In negotiation, what is a party's 'reservation price'?

Accepted Answer

The threshold beyond which a party would prefer no deal to a deal on those terms

Answer

A reservation price (or walk-away point) is the least favourable outcome a party would accept before preferring to walk away from the negotiation entirely.

BPTC Practice Test

BPTC Practice Test

BPTC Negotiation Skills 1