What is the term for a confidential discussion facilitated by a neutral third party?

Prepare for the HSC Business Studies Exam with flashcards and multiple choice questions, each with hints and explanations. Get exam ready!

Mediation is a process where a neutral third party helps facilitate a confidential discussion between two or more parties who are in conflict. The mediator's role is to assist the parties in communicating their interests and concerns, aiming to reach a mutually acceptable resolution. This method is particularly effective as it allows the involved parties to voice their viewpoints in a structured environment while providing an impartial perspective that helps in guiding the conversation towards solutions.

Negotiation, while also a method for resolving disputes, typically occurs directly between the parties involved, without the mediation of an external neutral party. Arbitration involves a third party who makes binding decisions based on the arguments presented, which differs from the non-binding nature of mediation where the mediator does not have the authority to decide the outcome. A general discussion lacks the structure and facilitative role of a mediator and may not focus on conflict resolution. Hence, mediation is the most accurate term that describes a process involving a confidential discussion guided by a neutral facilitator.

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