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The only procurement risk inherent in a distributive negotiation approach is the potential loss in the outcome. Is this statement TRUE?
Correct Answer: D
Distributive negotiation carries several risks beyond justlosing out on value. These includedamaging supplier relationships,eroding trust, andreaching an impasse, where neither party can agree. This could result in delayed projects, increased costs, or supplier withdrawal. "Distributive negotiation can lead to a breakdown in communication, impasses, and long-term relationship damage. The win-lose mindset can prevent collaborative problem-solving." (L4M5 Commercial Negotiation, 2nd edition, Section 3.5 - Risks of Distributive Approaches)