Starting Points (Or Initial Offers)

question 80

Multiple Choice

Starting points (or initial offers)

• A) are usually contained in the opening statements each negotiator makes.
• B) are usually learned or inferred as negotiations get under way.
• C) are not known to the other party.
• D) are given up as concessions are made.
• E) none of the answers are correct

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Definitions:

Mark-up

A surplus included in the goods' purchase price to compensate for overhead costs and gain, determining the final sales price.

Cost

The cost involved in buying an item or the financial outlay needed to produce a good or service.

Mark-up

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Markdown

A reduction from the original or listed price of a good or service, often used to stimulate sales or clear out inventory.