Trista Has Come Up with a Secret Recipe for Cookies

question 22

Multiple Choice

Trista has come up with a secret recipe for cookies and has sold them through exclusive outlets all around Atlanta.Sales are skyrocketing.She had to hire two employees to help her make the cookies.Now she is afraid one of them will quit and start a rival company using her recipe.What advice would you give her?

• A) Have the employees sign a nondisclosure agreement
• B) Register the recipe as a trade secret
• C) Offer the employees monetary compensation in exchange for their silence
• D) Have the court issue a gag order on the employees

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Definitions:

Net Income Before Taxes

Total revenue minus total expenses, excluding tax expenses.

Total Assets

The sum of all assets owned by a business, including cash, inventory, equipment, and real estate.

Average Collection Period

A ratio that shows how quickly moneys owed are received from customers and thereby measures how effectively a company collects its accounts receivables.

Date of Sale

The specific day on which a transaction is completed and ownership of goods or assets is transferred.