CBN CBN Value Creation & Claiming 1

Question 1

What is 'value creation' in the context of business negotiation?

Accepted Answer

Expanding the total benefits available to both parties through collaborative problem-solving

Answer

Value creation involves finding mutually beneficial trades that increase the overall size of the deal rather than simply dividing a fixed resource.

Question 2

What negotiation approach is most closely associated with value creation?

Accepted Answer

Integrative negotiation focused on mutual gains

Answer

Integrative negotiation focuses on identifying shared interests and creative trades that benefit both parties simultaneously.

Question 3

In CBN methodology, what does 'expanding the pie' mean?

Accepted Answer

Identifying trades that increase total value before dividing it between parties

Answer

Expanding the pie means finding additional value through creative solutions before negotiating how to distribute that value.

Question 4

Which technique best helps identify opportunities for value creation?

Accepted Answer

Trading on differences in priorities between the two parties

Answer

When parties value issues differently, trades can be made that give each side more of what they care about most at minimal cost to the other.

Question 5

Why is information sharing important in value-creating negotiations?

Accepted Answer

It reveals interests and priorities that enable creative trades between parties

Answer

Sharing information about priorities and constraints allows both parties to identify trades that create more value than positional bargaining.

(CBN) Certified Business Negotiator Practice Test