You Have Recently Gone into Business as a Consultant, Specializing

question 56

Multiple Choice

You have recently gone into business as a consultant, specializing in the area of online consumer protection.As part of your services, you offer a seminar to business owners on how they can prevent identity theft.Which of the following practices will you suggest to your clients?

• A)transacting as a mere conduit
• B)adopting authentication procedures that collect only necessary personal identifiers
• C)utilizing an open-access network
• D)implementing electronic contracting and instantaneous communication
• E)Allowing only one completely unsupervised person in your organization to have access to all personal information, and excluding all others in your organization from such access

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Definitions:

Annual Dividend

The total dividends that a company pays to its shareholders out of its profits over the course of a year.

Nominal Rate

The stated interest rate of a financial instrument without adjusting for inflation.

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.