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CIPS L4M5 SMALL BUSINESS MANAGEMENT PRACTICE QUESTIONS WITH EXPLANATIONS
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CIPS L4M5 SMALL BUSINESS MANAGEMENT PRACTICE QUESTIONS WITH EXPLANATIONS
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CIPS L4M5 SMALL BUSINESS MANAGEMENTPRACTICE QUESTIONS WITH EXPLANATIONS.
,Question 1: Correct
Distributive approach in negotiation is typified by which of the following?
•
Both parties share 50:50 of the 'pie'
•
Distributive approaches are inherently inferior to integrative approaches in commercial
negotiation
•
Each party attempts to maximise the value obtained at other's expense
(Correct)
•
Both parties understand each other's goals
Explanation
Distributive approach to negotiation used when the interested parties are attempting to divide something up or
distribute something of value, also known as zero-sum approach or win-lose. Commercial situations often
demand a distributive bargaining approach, if the 'pie' is inherently of a fixed size. In this case, any conflicts must
be resolved by sharing it.
In win-lose approach, a negotiator wants to maximize the value obtained in a single deal, the relationship with the
other party is not important. Therefore, a strong party may win more than 50% of the metaphorical 'pie'.
It should not be assumed that win-win can be applied to all commercial negotiations, or that win-lose approaches
are inherently inferior.
LO 1, AC 1.2
Question 2: Correct
Which of the following is the first step in the development of negotiation strategies?
•
Developing scenarios around possible options
•
Determining your BATNA
•
Recognizing TOP's needs and wants
•
Defining overarching objectives
, (Correct)
Explanation
Developing specific negotiation strategies in areas where risk or spend is high involves analyzing a wide range of
objectives and variables within the context of the organization’s business requirements. The first stage in any
negotiation preparation is to define your overall objectives which may be related to a single variable such as price
in the case of a standardized requirement, or many variables in the case of capital equipment. Your negotiating
strategies and tactics will all be focused on achieving overall objectives.
LO 2, AC 2.3
Question 3: Correct
In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the
others to buy into influencer's ideas?
•
Visionary (pull)
•
Directive (push)
•
Persuasive reasoning (push)
(Correct)
•
Collaborative (pull)
Explanation
There are two major persuasion methods: 'push' and 'pull'.
Persuasion can be defined as encouraging someone to do something that you want them to do for you.
Persuasion is reasoning with someone so that they will believe or do something they might not otherwise do.
Persuasion can be considered as 'pushing' on TOP so that they can accept the change in attitude or behaviour
as a result of your actions.
Influence is the ability to affect the manner of thinking of another. Influence can be considered as pulling on TOP
so that you achieve the same result, but TOP feels they have changed their attitude or behaviour as a result of
their reflection and thinking, and not your direct actions.
There are multiple variables to consider when choosing between 'push' and 'pull'. Professor Fiona Dent of
Ashridge Business School proposes situations when each style might be most appropriate, breaking down push
into 'directive' and 'reasoning' and 'pull' into 'collaborative' and 'visionary':
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