Affiliated businesses are best described as which of the following?

• A. A type of data encryption standard.
• B. A voluntary consumer consent method.
• C. A privacy policy statement about vendor approval.
• D. Companies that have direct financial ties to each other, such as minority ownership, where data sharing is often not considered selling.

Answer: (D)

Affiliated businesses are groups of companies that have direct financial ties—such as ownership or common control—that link them. Because they’re connected, they can share information about customers or patients as part of a joint service arrangement, and this sharing is often not treated as selling the data. This is why the statement describes companies with direct financial ties, like minority ownership, where data sharing occurs within the relationship rather than being sold to separate third parties.

The other options describe something different: an encryption standard is a technical measure, a voluntary consent method is about whether a person agrees to data use, and a privacy policy about vendor approval is about how a policy governs third-party vendors—none of these capture the idea of linked, financially connected entities sharing data as part of a business relationship.