What Is the Underlying Theory of Privileged Communication

question 35

Multiple Choice

What is the underlying theory of privileged communication?

• A) The parties in a protected relationship are liable to disclose details of the communication taking place between them.
• B) The society has a right to be aware of the communication within a protected relationship.
• C) The privacy and confidentiality of a communication within a protected relationship has to be maintained.
• D) In certain instances, society is best served by the suppression (protection from disclosure) of information.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained for re-investment in the business or to pay debt, rather than being paid out as dividends to shareholders.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the market.

Issue Price Over Par

Occurs when a security, typically a bond, is sold at a price higher than its face value.

Preferred Stock

A class of shares which typically provides a fixed dividend and has priority over common stock in the distribution of assets during liquidation.