NCEA Level 2 Business Studies Practice Test 2025 – Complete All-in-One Guide to Exam Success!

Question: 1 / 400

Which form of negotiation involves representatives acting on behalf of a group?

Individual Bargaining

Collective Bargaining

The correct answer is collective bargaining, which involves representatives negotiating on behalf of a group, typically in the context of labor relations. This process usually occurs between employers and a group of employees (often represented by a union) to negotiate employment terms such as wages, hours, and working conditions.

In collective bargaining, the representatives have a mandate from the group they represent, which allows them to negotiate more effectively and advocate for the interests of the entire group rather than just individual concerns. This form of negotiation aims to create a fair and mutually beneficial agreement that addresses the needs of both parties.

The other forms of negotiation revolve around individual efforts or direct interactions without the representation of a larger group, which does not capture the essence of collective representation inherent in collective bargaining.

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Direct Negotiation

Solo Negotiation

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