Because of Recent Advances in Technology,information Can Be Digitized and Transmitted

question 27

Multiple Choice

Because of recent advances in technology,information can be digitized and transmitted over fiber-optic cables.What privacy-related issue does this raise for the customer?

• A) Should customers be charged more now that companies can offer them better customer servicing?
• B) Should customers be charged less now that companies have ways in which they can reduce production costs?
• C) Should customer service be relative to the amount of money customers spend on company products?
• D) Should customers be informed that their personal information is being sent to other countries?

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Definitions:

Management Risk

The potential for losses due to the decisions and actions of an organization's management team.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification and is often influenced by external factors like political, economic, and social changes.

Political Upheaval

Significant disruption or change in the governing structure or policy of a country, often accompanied by protests or conflict.

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic changes or political events.