Sally Has Come Up with a Unique Recipe for Cookies

question 48

Multiple Choice

Sally has come up with a unique recipe for cookies and has started selling them through exclusive outlets all around Atlanta.The sales are skyrocketing and her friends tell her to patent the recipe.However,she does not want to reveal her secret ingredients even to any government agency.Is there anything she can do to keep the recipe legally protected?

• A) No, not unless she is willing to get her recipe patented.
• B) Yes, her recipe can be considered a trade secret and she can legally prevent others from benefiting from her recipe without her permission.
• C) Yes, she can declare her recipe to be a trade secret and register it with the U.S. Trade Secret Agency.
• D) No, because the recipe, not being a tangible product cannot be protected.

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Definitions:

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the net income and the revenue of a company.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total liabilities divided by total assets.

ROE

Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how well the company uses investments to generate earnings growth.

Total Assets Turnover

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.