Which term is an agreement that binds parties to keep information confidential?

Which term is an agreement that binds parties to keep information confidential?

• A. Policy
• B. Confidentiality/Nondisclosure Agreement
• C. Liability
• D. Workplace Morale

Answer: (B)

The idea being tested is recognizing formal language used to protect secret information. The term that binds parties to keep information confidential is a Confidentiality/Nondisclosure Agreement. This is a contract in which each party promises not to share or misuse specific information and to use it only for agreed purposes. It usually spells out what information is confidential, how long the obligation lasts, acceptable disclosures, and the consequences of breaches. For example, a vendor who receives product designs signs an NDA to prevent leaking those details. This makes the obligation legally binding, unlike a policy, which is a guideline or rule for behavior, or concepts like liability, which refer to responsibility for damages, or workplace morale, which describes the overall mood or spirit of a team.

The idea being tested is recognizing formal language used to protect secret information. The term that binds parties to keep information confidential is a Confidentiality/Nondisclosure Agreement. This is a contract in which each party promises not to share or misuse specific information and to use it only for agreed purposes. It usually spells out what information is confidential, how long the obligation lasts, acceptable disclosures, and the consequences of breaches. For example, a vendor who receives product designs signs an NDA to prevent leaking those details. This makes the obligation legally binding, unlike a policy, which is a guideline or rule for behavior, or concepts like liability, which refer to responsibility for damages, or workplace morale, which describes the overall mood or spirit of a team.