Final answer:
A disclosure statement is B. a document that outlines the risks and responsibilities of a financial transaction, providing important information to make informed decisions.
Step-by-step explanation:
A disclosure statement is a document that outlines the risks and responsibilities of a financial transaction. It provides important information that helps individuals make informed decisions regarding their investments. A disclosure statement typically includes details about the investment's potential returns, associated fees, and potential risks involved.
For example, when investing in stocks or bonds, a disclosure statement would provide information about the company's financial health, previous performance, and any potential conflicts of interest. This helps investors understand the potential risks and rewards of the investment.
The purpose of a disclosure statement is to ensure transparency and protect individuals from making uninformed financial decisions. By providing all relevant details, individuals can weigh the risks and make educated choices about their investments.