A Challenge That Comes About When Negotiations Are Conducted by a Buying

question 21

Multiple Choice

A challenge that comes about when negotiations are conducted by a buying team is:

• A)internal conflicts can arise in the team due to conflicting agendas.
• B)encountering a phenomenon called group think.
• C)dealing with various communication styles in the team.
• D)the balance of power shifts to the team with the most number of people in it.
• E)some people in the team may not be very well informed about the product.

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Definitions:

Present Obligation

A duty or responsibility that exists at the reporting date, typically requiring an outflow of resources.

Contingent Liability

A potential financial obligation that may occur in the future depending on the outcome of a specific event, not confirmed to exist or be measurable until one or more conditions are fulfilled.

Liability

A financial obligation or debt owed by an individual or company.

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.