Cleo Has Requested Past Financial Data and a Listing of Prospective

question 50

Multiple Choice

Cleo has requested past financial data and a listing of prospective customers from the seller of a business Cleo is interested in purchasing.Before providing this information the seller has Cleo sign a document to agree the information will remain private.What is this document?

• A) pre-sale agreement
• B) background check
• C) privacy agreement
• D) non-disclosure agreement

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Definitions:

T-Bill

Short for Treasury Bill, this is a short-term government security issued at a discount from par value and pays no interest.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand, related to one's financial situation, investment objectives, and psychological comfort.

Risky Asset

An asset that carries a significant degree of risk of losing value, but also offers a potential for higher returns compared to safer investments.

Risk-Free Asset

An asset which is assumed to provide a guaranteed return with negligible risk of financial loss, often considered to be short-term government securities.