Which of the Following Would Not Be a Misappropriation of a Trade

question 56

Multiple Choice

Which of the following would not be a misappropriation of a trade secret?

• A) Paying an engineer who is working at a competitor to disclose the trade secret to you.
• B) Buying the competitor's product,then tearing it apart and analyzing it in your laboratory to reveal the trade secret.
• C) Hiring a spy to break into a competitor's offices to acquire the secret.
• D) Asking one of your current engineers to disclose a trade secret of her former employer,which she then does.

---

Definitions:

Parent-Subsidiary Relationship

A corporate structure where one company (the parent) controls another company (the subsidiary) by owning a majority of its stock.

Common Stock

Common Stock represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without subsequent change for market value fluctuations.

Liquidated

The process of converting assets into cash or using them to pay off liabilities in the event of a business closure, bankruptcy, or when assets are no longer needed.