Which of the Following Is True of a Trade Secret

question 5

Multiple Choice

Which of the following is true of a trade secret?

• A)it derives economic value from not being known to others
• B)the owner must take steps to preserve its secrecy
• C)it must be registered with the government
• D)a and b
• E)all of the above

---

Definitions:

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve from an investment.

Discounted Payback

A capital budgeting method that calculates the length of time it takes to break even from an investment based on its discounted cash flows.

Profitability Index

A financial tool that calculates the ratio of the present value of future cash flows generated by an investment to the investment’s initial cost, used to assess project attractiveness.

Profitability Index

A financial metric that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.