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Justin ImesFlag for United States of America

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CRM 4.0 ability to maintain separate contacts per entity?

I am creating a new entity with its own business unit.  Once I created this and assigned it to a user, the user is still able to view all contacts.  Is there a way in CRM 4.0 to only allow this specific entity to see its own contacts and no other Business Unit contacts?
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Feridun Kadir
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Perfect explanation... thank you, my contact roles were set to organization.
Thanks so much.