Martin Is an Intern Working for Tennessee Fried Chicken (TFC),an

question 2

Multiple Choice

Martin is an intern working for Tennessee Fried Chicken (TFC) ,an international company with over 1,000 franchised restaurants throughout the United States and in 21 other countries.TFC heavily advertises on television and in various print media that its chicken is superior due to its blend of "42 secret herbs and spices." Many have tried to duplicate the recipe unsuccessfully,and burglars have even been caught trying to steal it.One day Martin is called into the president's office for an assignment,and during their conversation,the president leaves the room,leaving Martin alone.Martin notices that the wall safe is open and looks inside,where he sees an envelope labeled "THE RECIPE." He opens it and finds that it is the list of the 42 secret herbs and spices,along with quantities and order of use.He quickly makes a copy of the recipe and returns the envelope to the safe.That afternoon,he calls Bluto's Fried Chicken,a TFC competitor,and informs Bluto's of the information he possesses,and they arrange a meeting.If Martin sells the recipe to Bluto's,who,if anyone,would be guilty of misappropriation?

• A) If Martin sells the recipe to Bluto's, Martin is guilty of misappropriation but Bluto's is not guilty of misappropriation.
• B) If Martin sells the recipe to Bluto's, Martin is not guilty of misappropriation but Bluto's is guilty of misappropriation.
• C) If Martin sells the recipe to Bluto's, both Martin and Bluto's are guilty of misappropriation.
• D) Neither Martin nor Bluto's is guilty of misappropriation because leaving the safe open shows that the secret was not guarded and guarding is necessary to qualify for trade secret protections.

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Definitions:

Accounts Payable

Accounts Payable is the account showing the amount a company owes to suppliers or vendors for goods or services purchased on credit.

Target Capital Structure

The optimal mix of debt, equity, and other financing sources that a company aims to maintain to fund its operations and growth.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Capital Budget

The process and plan for determining and allocating resources for capital or investment projects within an organization.