Which agreement is negotiated between internal business units within an organization?

The correct choice focuses on the operational-level agreement, which is an essential component in defining the expectations and responsibilities among various internal business units within an organization. This type of agreement is designed to ensure that different teams understand their roles in serving internal customers and achieving the organization’s goals.

Operational-level agreements specify the technical details, workflow processes, and performance metrics specific to the operational aspects of service delivery, often aligning with the internal service level agreements that define performance expectations for an organization's internal services. By establishing these agreements, organizations can ensure that all internal units work cohesively and that there is clarity regarding responsibilities, thereby enhancing operational efficiency and collaboration.

In contrast, service-level agreements focus more on commitments made to external customers regarding service quality and performance. Underpinning contracts typically relate to agreements with external suppliers that support internal services, while business-level agreements generally define broader terms and expectations from the business’s perspective, often between the service provider and the end-user.