Which of the Following Conclusions About the Issue of Fairness

question 40

Multiple Choice

Which of the following conclusions about the issue of fairness is not a true statement?

• A) Involvement in the process of helping to shape a negotiation strategy increases commitment to that strategy and willingness to pursue it.
• B) Negotiators (buyers in a market transaction)who are encouraged ("primed")to think about fairness are more cooperative in distributive negotiations.
• C) Parties who are made offers they perceive as unfair may reject them out of hand,even though the amount offered may be better than the alternative settlement,which is to receive nothing at all.
• D) Establishment of some "objective standard" of fairness has a positive impact on the negotiations and satisfaction with the outcome.
• E) All of the above are true statements.

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Definitions:

Installment Sales

A method of sale where the buyer makes payments towards the total sale price in installments over time, while the seller recognizes revenue as payments are received.

Asset Impairment Test

A procedure carried out to determine if an asset's carrying amount is not recoverable and exceeds its fair value, necessitating a write-down to its fair value.

Deferred Tax Asset

A tax benefit stemming from temporary differences between accounting and tax calculations, which will result in deductible amounts in future tax payments.