The Method of Using Extreme Positions During the Concessions and Agreement

question 3

Multiple Choice

The method of using extreme positions during the concessions and agreement stage of negotiation involves ________.

• A)careful timing of the disclosure of information and concessions
• B)approaching the issue in a holistic manner
• C)general and polite conversation to socialize
• D)building mutual trust before embarking on business discussions

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Definitions:

Equity

Equity represents the value of an owner's interest in a property or business, after deducting liabilities.

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain with a lender as part of the terms of a loan.

Rate of Interest

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Equity Financing

The method of raising capital through the sale of shares in a company, thereby granting shareholders ownership interests.