EXAM WITH CORRECT SOLUTIONS.

• | Page

CPPB EXAM

EXAM WITH CORRECT SOLUTIONS.

Procurement Technology - correct answer- Helps accelerate business improvements

Results Oriented Budgeting - correct answer- Attempts to link a resource allocation to performance criteria

Budget Cycle - correct answer- 1. Planning 2. Formalization 3.implementation 4. evaluation

Procurement Cards - correct answer- payment method whereby internal customers are empowered to deal directly with suppliers using a credit card

Four principles of negotiation - correct answer- 1. separate people from the problem

• create a variety of options before deciding which to pursue
• focus on interests, not positions
• use objective criteria
• / 4

• | Page

people elements to negotiation - correct answer- differences of perception, emotions, communications

differences of perception - correct answer- it is crucial for both sides to understand the other's viewpoint

emotions - correct answer- negotiation can be a frustrating process

communications - correct answer- negotiators may not be speaking to each other, but may simply be grandstanding for their respective constituencies

establish a BATNA - correct answer- The Best Alternative To a Negotiated Agreement

stonewalling - correct answer- this occurs when one side has no intention of reaching an agreement unless there is an irresistible offer.

• / 4

• | Page

good samaritan - correct answer- the other side is using this technique when it acts as if it is doing you a favor or making a great sacrifice with its offer in order to put you off guard and persuade you to accept it

opposition negotiation tactics - correct answer- stonewalling, good samaritan, take it or leave it, splitting the difference, nickel and dime, good/bad cop, pity me, piece-by-piece, total package, refusal to negotiate, status, escalating demands, divide and conquer, defense, win/win

take it or leave it - correct answer- when the other side has made its final offer and says it will no longer negotiate

splitting the difference - correct answer- this involves offering to cut the dollar difference in half, thus avoiding the discussion of the details of the deal

nickel and dime - correct answer- the other side wants to negotiate each and every point

good/bad cop - correct answer- this tactic is used to elicit feelings of sympathy and understanding in order to get concessions 3 / 4

• | Page

pity me - correct answer- this tactic is designed to rely on the sense of fair play and make it hard to walk away

piece-by-piece - correct answer- this tactic is used to negotiate each item of a contract

total package - correct answer- this tactic is used when an offer is acceptable, but one or two major elements still need to be negotiated.

refusal to negotiate - correct answer- in this tactic the other side wants a concession even to talk

status - correct answer- sometimes the party you are negotiating with is perceived to have a higher status, such as when the president of a company personally negotiates with a buyer.

escalating demands - correct answer- extreme demands may be made to persuade you to lower your expectations for a final agreement.

• / 4