The Key Difference Between Mediation and Arbitration Is

question 88

Multiple Choice

The key difference between mediation and arbitration is:

• A) A mediator is constrained to work with the final offers given by the parties while an arbitrator can create an agreement that lies somewhere in between final offers
• B) An arbitrator has more ability to come up with an agreement that both parties will be happy with
• C) An arbitrator is focused on improving the relationship between the parties while a mediator just wants to get a settlement
• D) A mediator has no authority to make a final and binding decision

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Definitions:

Book Income

The net income reported by a company as per its financial statements, reflecting its accounting principles rather than taxable income.

Interperiod Tax Allocation

The process of distributing tax expenses or benefits over different accounting periods due to temporary differences between financial accounting and tax accounting rules.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total tax paid by taxable income.

Income Tax Expense

The amount of money a company or individual owes in taxes based on their taxable income for a given period.