Privacy Laws Limit the Extent to Which Businesses Can Collect

question 16

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)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.
• B)When a company only collects necessary personal information, it can use that information however it wants.
• C)A company should encrypt personal information whenever possible, even if there is a small financial cost to do so.
• D)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.
• E)A company should include the maximum expected cost of privacy law claims into its calculation price of goods or services and not bother to comply with the privacy laws.

Illustrate the impact of foreign currency exchange rate changes on financial statements.

Compare and analyze hedge accounting under International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE).

Understand the role and functionality of FTP in website management.

Recognize the importance of validating HTML code according to standards.

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Definitions:

Dominant Strategy

In game theory, a strategy that yields the highest payoff for a player, regardless of what strategies other players choose.

Game Theory

A field of study that models and analyzes strategic interactions among rational decision-makers.

Game Theory

A study of strategic decision making, analyzing interactions with formalized incentive structures ("games").

Strategic Choices

Decisions made by individuals or organizations that have significant long-term implications on their objectives and activities.