Which of the Following Statements Is True of Misappropriation

question 69

Multiple Choice

Which of the following statements is true of misappropriation?

• A) Innocently acquiring a secret from another without having knowledge of its theft is an act of misappropriation.
• B) If, through his or her own efforts, one is able to recreate the same information that another considers to be a trade secret, misappropriation has occurred.
• C) If one acquires a secret from another who has a duty to maintain secrecy and one knows of that duty, misappropriation has occurred.
• D) Knowledge or performance of a duty to maintain secrecy is irrelevant in the demonstration of misappropriation.
• E) Recreation of the same information that another considers a trade secret is treated as misappropriation.

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Definitions:

Annual Cash Inflows

The total amount of money, often from sales, investments, or financing, that flows into a company over a year.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument, in order to determine its present value.

Salvage Value

The expected end-of-life residual value of an asset.

Net Present Value

Net present value is the calculation to determine the present value of a series of future cash flows minus the initial investment cost, used to assess the profitability of investments.