How to have terminal close tab when shell exits?

I just recently upgraded from 10.6 to 10.8. On 10.6 I could set the terminal to close the tab/window when the shell exits.

Mountain Lion's terminal just says the process is completed and the tab/window stays open:

bash$ exit
logout

[Process completed]

I find this very annoying, but I no longer see the preference to change it. Is there a way to set Mountain Lion's Terminal to close when its process exits?


Solution 1:

You can change this in Terminal's Preferences:

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