What term describes a settlement of differences between opposing sides in which each makes concessions?

What term describes a settlement of differences between opposing sides in which each makes concessions?

• A. Compromise
• B. Mediation
• C. Arbitration
• D. Negotiation

Answer: (A)

When two opposing sides settle differences by giving up some of their demands, that outcome is a compromise. It specifically describes a settlement reached through mutual concessions, where both sides yield a bit to meet in the middle and form a shared agreement. Mediation involves a neutral third party helping the sides discuss and reach an agreement, but the mediator doesn’t impose a binding decision. Arbitration has a third party who makes a binding decision after hearing both sides. Negotiation is the broader bargaining process that can lead to a deal, but the term itself doesn’t require that both sides have to concede to settle.

When two opposing sides settle differences by giving up some of their demands, that outcome is a compromise. It specifically describes a settlement reached through mutual concessions, where both sides yield a bit to meet in the middle and form a shared agreement.

Mediation involves a neutral third party helping the sides discuss and reach an agreement, but the mediator doesn’t impose a binding decision. Arbitration has a third party who makes a binding decision after hearing both sides. Negotiation is the broader bargaining process that can lead to a deal, but the term itself doesn’t require that both sides have to concede to settle.