BUSINESS EXAM 3 QUESTIONS AND
ANSWERS | 2026 UPDATE | 100%
CORRECT.
Negotiation Techniques -
the four elements of principled
negotiation - ANS 1. Uncouple parties from the problem
2. Target underlying concerns
3. Develop joint solutions
4. Apply objective standards
#1 - Uncouple Parties from the Problem - ANS One goal of principled negotiation is to resolve
situation in a way that maintains the
relationship
✓ To do this, we uncouple, or separate, the parties
from the issue at hand
Focus on the problem not people - ANS • It is human nature to take positions and
counter positions personally:
✓ anger, disgust, rolling eyes, ...
• You can keep parties and problem separate
by:
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,✓ Listening actively
✓ Diffusing emotions
✓ Selecting the most effective way to frame your
position and counterposition
Frame your position
How to frame, that is state your position: - ANS 1. Describe the situation or problem in terms
of
facts.
2. Show understanding how this affects the other
party's feelings.
3. Tell the other party how you feel about the
situation or how it affected you.
4. State what you want or what you are willing to do
or both.
Positive vs. Negative Frames - ANS • You have a 90 percent chance of living with this drug
• If you don't take this drug, you have a 10 % chance
of dying
Value Frames - ANS • There is a 20% discount for the medical device
• Currently there is $ 240 off the medical device
Auditory Frame - ANS • Using an assertive & confident tone of voice.
• Using deep and aggressive tone of voice.
Decoy Effect - ANS the decoy effect is the phenomenon where consumers swap their
preference between two options when presented a third option
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,#2 - Target Underlying Concerns - ANS Most successful negotiations delve beneath the
positions of each party to identify underlying
concerns.
✓Why someone holds a particular position?
✓What do they really "need"?
interest vs. position - ANS
Positions are - ANS surface statements of where a person or
organization stands, and rarely provide insight into
underlying motivations, values or incentives.
ex.) • I will not work evenings
Interests are - ANS a party's underlying reasons, values or
motivations. Interests explain why someone takes a
certain position.
ex.) • I have evening classes for an MBA to advance my career
reflect on your underlying concerns - ANS • What outcomes do I "need"? (essential)
• What outcomes do I "want"? (desirable)
✓ If you are unable to meet your "needs", then you
should withdraw from the negotiation.
✓ Any "want" you get is a sweet extra.
#3 - Develop Joint Solutions - ANS ✓ Parties look for ways to satisfy their
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, underlying concerns (i.e., the interests).
✓ Both parties, tend to comply with solutions
they were part of developing.
Negotiating leverage is directly related to
strength of fallback position (BATNA): - ANS ✓ BATNA: Best Alternative to a Negotiated
Agreement
✓ If fallback (BATNA) is strong, reveal it to the
other party
✓ If fallback (BATNA) is weak, do not divulge to the
other party
#4 - Apply Standards - ANS The final step in principled negotiation involves
applying objective standards.
Performance measures
✓ quantity, quality, time frame, ...
Negotiation Summary - ANS • Use active listening in negotiation to avoid judging
and to keep your focus on the issues rather than the
people.
• The most successful negotiations address the
"needs" of all parties.
• Both parties tend to comply with joint solutions.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 52
ANSWERS | 2026 UPDATE | 100%
CORRECT.
Negotiation Techniques -
the four elements of principled
negotiation - ANS 1. Uncouple parties from the problem
2. Target underlying concerns
3. Develop joint solutions
4. Apply objective standards
#1 - Uncouple Parties from the Problem - ANS One goal of principled negotiation is to resolve
situation in a way that maintains the
relationship
✓ To do this, we uncouple, or separate, the parties
from the issue at hand
Focus on the problem not people - ANS • It is human nature to take positions and
counter positions personally:
✓ anger, disgust, rolling eyes, ...
• You can keep parties and problem separate
by:
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 52
,✓ Listening actively
✓ Diffusing emotions
✓ Selecting the most effective way to frame your
position and counterposition
Frame your position
How to frame, that is state your position: - ANS 1. Describe the situation or problem in terms
of
facts.
2. Show understanding how this affects the other
party's feelings.
3. Tell the other party how you feel about the
situation or how it affected you.
4. State what you want or what you are willing to do
or both.
Positive vs. Negative Frames - ANS • You have a 90 percent chance of living with this drug
• If you don't take this drug, you have a 10 % chance
of dying
Value Frames - ANS • There is a 20% discount for the medical device
• Currently there is $ 240 off the medical device
Auditory Frame - ANS • Using an assertive & confident tone of voice.
• Using deep and aggressive tone of voice.
Decoy Effect - ANS the decoy effect is the phenomenon where consumers swap their
preference between two options when presented a third option
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 52
,#2 - Target Underlying Concerns - ANS Most successful negotiations delve beneath the
positions of each party to identify underlying
concerns.
✓Why someone holds a particular position?
✓What do they really "need"?
interest vs. position - ANS
Positions are - ANS surface statements of where a person or
organization stands, and rarely provide insight into
underlying motivations, values or incentives.
ex.) • I will not work evenings
Interests are - ANS a party's underlying reasons, values or
motivations. Interests explain why someone takes a
certain position.
ex.) • I have evening classes for an MBA to advance my career
reflect on your underlying concerns - ANS • What outcomes do I "need"? (essential)
• What outcomes do I "want"? (desirable)
✓ If you are unable to meet your "needs", then you
should withdraw from the negotiation.
✓ Any "want" you get is a sweet extra.
#3 - Develop Joint Solutions - ANS ✓ Parties look for ways to satisfy their
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 52
, underlying concerns (i.e., the interests).
✓ Both parties, tend to comply with solutions
they were part of developing.
Negotiating leverage is directly related to
strength of fallback position (BATNA): - ANS ✓ BATNA: Best Alternative to a Negotiated
Agreement
✓ If fallback (BATNA) is strong, reveal it to the
other party
✓ If fallback (BATNA) is weak, do not divulge to the
other party
#4 - Apply Standards - ANS The final step in principled negotiation involves
applying objective standards.
Performance measures
✓ quantity, quality, time frame, ...
Negotiation Summary - ANS • Use active listening in negotiation to avoid judging
and to keep your focus on the issues rather than the
people.
• The most successful negotiations address the
"needs" of all parties.
• Both parties tend to comply with joint solutions.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 52
