Mohammad Was an Employee in the New Product Development Department

question 22

Multiple Choice

Mohammad was an employee in the new product development department of Estay Inc.Mohammad was directly involved in the development of a new product that Estay intended to launch in six months.Estay took great care to keep information concerning the new product a secret.Ceries,Inc.,a competitor of Estay,persuaded Mohammad to leave Estay to direct Ceries' marketing department.Which statement is correct?

• A) Mohammad can share with Ceries the confidential information he knows about Estay's new product because he was directly involved in its development.
• B) Mohammad can share with Ceries the confidential information he knows about Estay's new product because his agency relationship with Estay is terminated.
• C) Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because of the equal dignities rule.
• D) Mohammad cannot share with Ceries the confidential information he knows about Estay's new product because he has a duty not to disclose confidential information he acquired during the agency.

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Definitions:

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The current market price at which shares of a company can be bought or sold.

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Describes a phenomenon in finance and economics where an observed trend or pattern in market prices reverses direction over a certain period.

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A strategy or action where investors purchase bond securities, typically as a means of diversifying a portfolio or securing fixed income returns.

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The action of purchasing shares of a company with the expectation that their value will increase over time.