CBN CBN Value Creation & Claiming 4

Question 1

In negotiation theory, 'expanding the pie' refers to which primary concept?

Accepted Answer

Increasing the total value available for both parties through creative problem-solving

Answer

Expanding the pie means creating additional value so both sides can gain more than the fixed-sum assumption allows.

Question 2

A negotiator discovers that her counterpart values delivery speed far more than price discounts. The best value-creation move is to:

Accepted Answer

Offer faster delivery in exchange for a higher price

Answer

Trading on differing priorities—speed for price—is a classic integrative move that creates mutual gain.

Question 3

Which of the following best describes a 'contingent contract' as a value-creation tool?

Accepted Answer

A deal whose terms vary based on a future event or performance outcome

Answer

Contingent contracts resolve differing forecasts by tying deal terms to how uncertain future events actually unfold.

Question 4

When negotiators make 'package' offers rather than single-issue proposals, the primary benefit is:

Accepted Answer

Revealing relative priorities and enabling trade-offs across issues

Answer

Package offers expose how each party values different issues, creating room for integrative trade-offs.

Question 5

Post-settlement settlements (PSS) are used to:

Accepted Answer

Improve upon an already-reached agreement by searching for mutually superior options

Answer

PSS involves both parties agreeing to explore whether a better deal exists after reaching an initial agreement, with the original as a fallback.

(CBN) Certified Business Negotiator Practice Test