What Is the Best Definition of a Trade Secret

question 14

Multiple Choice

What is the best definition of a trade secret?

• A)A formula,device,process,method,or compilation of information that,when used in business,gives the owner an advantage over competitors.
• B)Any combination of words and symbols that a business uses to identify its products or services and distinguish them from others.
• C)The right of an inventor to prevent others from making,using,or selling his inventions for a limited time.
• D)The right of a creator to exclusively reproduce,distribute,and perform her work for a limited time.

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Definitions:

Accounts Payable Period

The average number of days it takes for a company to pay off its suppliers and creditors.

Accounts Payable Turnover

A financial efficiency ratio that measures how quickly a firm pays off its suppliers by dividing total purchases by average accounts payable.

Times

This term in a financial context often relates to ratios, such as the "times interest earned" ratio, which measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for a bank loan, often to compensate the bank for extending credit.