What Is the Implication of the Dilemma of Trust

question 21

Multiple Choice

What is the implication of the dilemma of trust?

• A) We believe everything the other says and can be manipulated by their dishonesty.
• B) We do not believe anything the other says and therefore are immune to their dishonesty.
• C) We tell the other party our exact requirements and limits in negotiation, and therefore we will never do better than this minimum level.
• D) We never reveal our requirements and limits in negotiation, and therefore are able to far exceed that minimum level.
• E) None of the answers are correct

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Definitions:

Rate Of Return

The increase or decrease in value of an investment within a set timeframe, represented as a percentage of the investment's starting price.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks or the rate used to discount future cash flows to their present value.

Present Value

The worth in present terms of a lump sum or cash flows anticipated in the future, using a predetermined rate of return for the calculation.

Per Year

A time frame reference indicating an annual basis.