Privacy Laws Limit the Extent to Which Businesses Can Collect,use,or

question 56

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.

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Definitions:

Driving Miles

A measure of distance traveled by vehicles, often used to assess fuel consumption or travel costs.

Equality

The state of being equal, especially in status, rights, opportunities, or distribution of wealth.

Efficiency

In economic terms, this refers to the optimal production and allocation of resources to maximize output with the least waste.

Scarce Resources

Limited resources which are not enough to satisfy the unlimited wants of people.