When Negotiating, the Tendency Is to Want to Win! Why

question 30

Multiple Choice

When negotiating, the tendency is to want to win! Why is this not a good approach when managing contracted relationships?

• A)This approach inhibits the degree of trust and cooperation needed for the alliance to work.
• B)A noncompetitive approach can bring about functional conflict.
• C)This approach can cause dysfunctional conflict to rise and negotiations to break down.
• D)Because people have to continue to work together after negotiations.
• E)All of these are reasons a competitive approach to negotiation should not be used when managing contracted relationships.

---

Definitions:

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal.

Lower of Cost

An inventory valuation method requiring inventory to be recorded at the lower of its historical cost or current market value.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are the first to be expensed.

Inventory Holding Gains

Inventory holding gains are increases in the value of inventory a company holds due to price inflation or increased demand, not yet realized through sales.