Knowledge-Based Trust Is Based on the Belief That the Other

question 22

True/False

Knowledge-based trust is based on the belief that the other party will deliver its promises because punishments would be applied if they fail to deliver those promises.

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Definitions:

Securities Act of 1933

A U.S. federal law that governs the sale of securities, requiring them to be registered and to disclose relevant financial information to protect investors.

Civil Liability

The responsibility to compensate for wrongs or damages caused by one’s actions or negligence to another party, as governed by civil law.

Implied Agreement

An unwritten contract that is assumed to exist based on the actions and circumstances of the parties involved.

Competent and Professional

Having the necessary ability, knowledge, and skill to perform tasks or duties effectively and with a degree of quality expected by one's profession.