Certified Professional Public Buyer (CPPB) Practice Test

Which of the following describes the stages of negotiation?

1. Proposal, Discussion, Conclusion

2. Planning, Actual negotiations, Completion

3. Preparation, Presentation, Follow-up

4. Introduction, Agreement, Closure

The correct answer is: Planning, Actual negotiations, Completion

The stages of negotiation are critical to understanding how to effectively engage in any negotiation process. The correct choice identifies the three fundamental phases: Planning, Actual negotiations, and Completion. Planning is the initial stage where the parties involved prepare for the negotiation. This includes identifying objectives, determining the best strategies, and understanding the needs and motivations of both sides. It sets the groundwork for successful negotiations and ensures that negotiators approach discussions with a clear understanding of what they aim to achieve. The Actual negotiations phase follows, during which the parties come together to discuss their proposals, make counter-offers, and work towards an agreement. This stage is marked by active communication, where the negotiation tactics and skills are put into practice. Finally, the Completion stage involves finalizing the agreement and ensuring that all parties are satisfied with the terms discussed. This stage may include signing contracts or formalizing decisions made during negotiations. It's crucial as it solidifies the outcome and prepares for implementation. The other options do encompass aspects of negotiation but do not accurately represent the systematic and structured approach that the chosen answer provides. For instance, while Proposal, Discussion, Conclusion touches upon elements of interaction, it lacks the comprehensive view on planning and completion that are essential for effective negotiation processes. Similarly, Preparation, Presentation