What type of outcome occurs when parties settle their disputes independently?

Prepare for the VCE Business Management Exam. Use flashcards and multiple choice questions, with hints and explanations for each question. Get ready for your success!

A negotiated outcome occurs when parties settle their disputes independently, meaning they engage directly with each other to reach an agreement without the involvement of a third party. This process allows the parties to discuss their interests, present their perspectives, and work toward a resolution that is acceptable to both sides.

Negotiation is characterized by communication and collaboration, which can lead to a mutually beneficial solution that addresses the needs of both parties. This is different from other types of outcomes, such as mediated or arbitrated outcomes, where a neutral third party is involved to facilitate the discussion or make binding decisions.

In a negotiated outcome, the focus is on compromise, but unlike a compromised outcome that may imply a forced settlement through concession, negotiation ideally results in a win-win situation that respects the interests of each party involved.

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