Privacy Laws Limit the Extent to Which Businesses Can Collect

question 49

Multiple Choice

Privacy laws limit the extent to which businesses can collect, use or disclose personal information about their customers. Which of the following strategies should be adopted by a company to minimize the risks and costs associated with privacy compliance?

• A) When a company only collects necessary personal information, it can use that information however it wants.
• B) A company should encrypt personal information whenever possible, even if there is a small financial cost to do so.
• C) If the company is located in the Yukon, it is not subject to privacy legislation so should develop its privacy policy in a way that best suits its needs.
• D) A company should appoint one person to be responsible for privacy issues so that it can completely avoid the cost of training other employees about privacy compliance.
• E) none of the above

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Definitions:

Financial Affairs

Matters related to money management, including investments, budgeting, banking, and the handling of financial assets and liabilities.

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Americanize

The process of assimilating or causing someone or something to assimilate to American culture, values, or customs.

Battle of Bud Dajo

A conflict that was part of the Moro Rebellion in the Philippines, where American forces clashed with Moro insurgents in 1906.