Which of the Following Is True of a Trade Secret

question 112

Multiple Choice

Which of the following is true of a trade secret:

• A) it is not known by the competition
• B) the business would lose its advantage if the competition were to obtain it
• C) the owner has taken reasonable steps to protect the secret from disclosure
• D) all of the other specific choices are correct
• E) none of the other specific choices are correct

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Definitions:

Capital Asset Pricing Model

A formula used to determine the expected return on an investment, considering risk and the time value of money.

Cost of Equity

The return a firm theoretically pays to its equity investors as compensation for the risk they undertake by investing in the company, often estimated using models like the Capital Asset Pricing Model (CAPM).

Required Returns

The minimum expected return by investors for investing in a particular asset, taking into account its risk level.

Capital Components

The various sources of funding that a company uses to finance its overall operations and growth, including debt and equity.