True or False: The pre-negotiation objective assists in determining a fair and reasonable price.

The pre-negotiation objective is essential in establishing a framework for negotiations, particularly in determining a fair and reasonable price. This objective serves as a guiding principle, enabling negotiators to identify their priorities, constraints, and the desired outcomes before entering discussions. By defining this objective, negotiators can better assess whether the proposed prices align with market standards, budgetary limits, and the value of the goods or services being procured.

Having a clear pre-negotiation objective helps negotiators to remain focused during the negotiation process, ensuring that they strive for a fair and reasonable price that meets the needs of all parties involved. In this regard, the statement is true because the objective directly impacts the strategy and decisions made during negotiations, ultimately affecting the price that is agreed upon.