Because Organizations Can Risk Losing Trade Secrets When Key Employees

question 39

True/False

Because organizations can risk losing trade secrets when key employees leave, they often try to prohibit employees from revealing secrets by adding non-compete clauses to employment contracts.

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Definitions:

Market

A system or an environment where buyers and sellers interact to trade goods, services, or financial instruments.

Free-rider Problem

A situation where individuals consume goods or services without paying for them, which typically occurs with non-excludable and non-rival public goods.

Market Resources

The assets, materials, and inputs used to produce goods and services and are made available through the market.

Entrepreneurs

Individuals who innovate, finance, and manage business ventures, often taking on greater than normal financial risks.