What type of processing occurs when processes run for a slice of time, then yield access to the CPU to another process, cycling through processes repeatedly?

The type of processing you are describing is known as "time-sharing" or "preemptive multitasking". In this scenario, each process gets to run for a certain slice of time called a "time slice" or "quantum". The operating system manages these time slices and allocates CPU time to different processes in a round-robin fashion.

When a process's allocated time slice expires or it yields the CPU voluntarily, the operating system's scheduler selects another process from the ready queue to run next. This handover is facilitated by a context switch, where the state of the current process (like register values, program counter, etc.) is saved so it can be resumed later, and the state of the next process to run is loaded into the CPU.

This type of scheduling ensures that all active processes make progress and that no single process can monopolize the CPU, which is essential for a responsive and fair system, especially in multi-user environments.