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CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication

A cost accountant at Sharma & Sons Pvt Ltd is asked by a friend at a rival firm about the company's unpublished pricing strategy. Which response best reflects the principle of confidentiality in business communication?

The accountant should decline to disclose the pricing strategy. Confidentiality means non-public business information is protected from unauthorised persons, and a friend's promise or the person's trustworthiness does not give authority to share it with a rival firm.

  1. AShare only the broad outline since the friend is trustworthy
  2. BDecline to disclose, since non-public business information must be protected from unauthorised personsCorrect
  3. CDisclose it if the friend promises not to pass it on
  4. DDisclose it because pricing is not a legal matter

Explanation

Confidentiality requires that non-public business information be shared only with authorised persons. A promise from the friend does not make the disclosure authorised, so options that allow partial or conditional sharing are wrong.

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