Which of the Following Statements Regarding Third Party Negotiations Is

question 57

Multiple Choice

Which of the following statements regarding third party negotiations is correct?

• A)Individuals who utilized mediation indicated in a survey that they would not be supportive of using the process again.
• B)The mediator assists the parties in agreeing on mutually exclusive resolutions.
• C)Arbitrators help prepare for a formal hearing.
• D)Arbitration is an acceptable practice for many companies to resolve challenging problems.

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Definitions:

Decentralized Company

A decentralized company allows for decision-making authority to be distributed among various levels within the organization rather than being concentrated at the top.

Decision Making

Choosing among alternative actions; a component inherent in the other management processes of planning, directing, controlling, and improving.

Negotiated Price Approach

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

Transfer Price

The price at which goods and services are sold between divisions within the same company.