LAP- CR-017

The key to business success is

• increasing sales on a quarterly basis.

• creating new products.

• beating the competition.

• developing long-term customer relationships.

Customer trust can provide a business with

• a competitive advantage.

• discounts on raw materials.

• more effective advertising campaigns.

• better credit terms.

When a company delivers a product on time, it is building customer trust by

• keeping information safe and private.

• keeping promises.

• displaying appropriate knowledge.

• being transparent.

Jaimie calls a plumber to fix a broken sink. The plumber knows exactly what the problem is and repairs it quickly and efficiently. This plumbing business has built trust with Jaimie by

• being transparent.

• keeping promises

• using customer information wisely.

• displaying technical competence.

A bakery accidentally placed the wrong goods in the gluten-free case, causing some customers to get sick. The owner of the bakery admitted the mistake, apologized, and offered complimentary gluten-free goods to those customers for the rest of the year. This is an example of a business attempting to build customer trust by

• being transparent.

• using customer information wisely.

• keeping promises.

• keeping information safe and private.

A fitness center keeps its clients’ credit card information on file so it can charge their monthly fees. No client has ever had her/his credit card information lost by or stolen from this business. This is an example of building trust by

• keeping information safe and private.

• displaying appropriate knowledge.

• being transparent.

• keeping promises.

The government agency that oversees businesses’ privacy practices is the

• Bureau of Industry and Security.

• Bureau of Labor Statistics.

• Federal Trade Commission.

• Securities and Exchange Commission.

Which of the following is a true statement regarding the Fair Information Practice Principles:

• They do not cover online privacy issues.

• They apply only to service businesses.

• They are published by Consumer Reports magazine.

• They are not enforceable laws.

The notice/awareness section of the Fair Information Practice Principles states that customers should know

• what data encryption software the business is using.

• if providing their information is voluntary or required.

• how to opt-out of online communications.

• how to make changes to their personal information.

The ability to opt in or out of communications with a business is covered in which of the Fair Information Practice Principles?

• Access/Participation

• Integrity/Security

• Choice/Consent

• Notice/Awareness