Which process involves a third party helping to resolve conflicts between parties?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

The correct choice is mediation. Mediation is a process where a neutral third party assists the conflicting parties in reaching a mutually agreeable solution. The mediator does not impose a decision on the parties involved but facilitates communication, clarifies issues, and helps propose solutions that both parties can accept. This process encourages cooperation and understanding, making it a valuable approach to resolving disputes amicably.

In contrast, arbitration involves a third party making a decision for the parties after hearing their positions, which can be legally binding. Negotiation is a direct discussion between the parties involved to reach an agreement without the third-party interference. Facilitation refers to the act of making a process easier or more achievable but may not directly involve conflict resolution in the same structured manner as mediation.

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