ch 5 business info and conflicts of interest

Peps-U-UP Cola Company creates a secret recipe for a new soft drink that is clear, yet caffeinated. Identifying this recipe as ________ distinguishes it from all other kinds of proprietary information. valuable information a trade secret intellectual property confidential information

a trade secret

Which of the following is an example of an ethical way a company can protect confidential information? At XYZ Technologies, employees are required to agree not to work for any competitor after they terminate employment. At QRS Computers, management informs all team members of legal actions taken against those who take information out of the building. At ABC Tech, each team involved in developing a new cell phone is provided only with the information required for its task. At LMNO IT, each employee signs a strict nondisclosure agreement that prohibits them from discussing any aspect of their work.

At ABC Tech, each team involved in developing a new cell phone is provided only with the information required for its task.

Lucy is a full-time instructor at the local community college. She needs money, so she agrees to also teach a class on the same subject for another college in the area. This situation is an example of which kind of conflict of interest? Misuse of position Biased judgment Direct competition Violation of confidentiality

Direct competition

Stacey, a chemist, changes employment from Timbuktu Glass to Shine Glass. She suggests Shine Glass use a chemical composition for glass that improves on one she learned while working at Timbuktu Glass. Which argument for trade secret protection could Stacey use to defend this action? Competitor intelligence Property rights Fair competition Duty of confidentiality

Fair competition

What is the key distinction between ethical and unethical competitor intelligence gathering? The format in which the information is stored The person who gathered the information The method used to gather the information The person who uses the gathered information

The method used to gather the information

Why do noncompetition agreements require justification? They limit employment options. They are applicable only to low-level employees. They restrict employee creativity. They define corporate culture.

They limit employment options.

For which person could a noncompete agreement be justified? Sam, an HR coordinator Desmond, an executive assistant Trina, a high-level executive Sue, a college intern

Trina, a high-level executive

Nondisclosure and noncompetition agreements are two documents designed to protect fairness. justice. confidentiality. ethics.

confidentiality.

Stephan is accepting bids from contractors to build a new office building for his firm. He chooses the bid from his friend, Pete, who agrees to give Stephan a percentage of the bid. This situation is an example of proprietary information. fair competition. conflict of interest. trade secrets.

conflict of interest.

Both Enron's executives and Arthur Andersen's executives had partnerships that introduced problems with competitor intelligence. property rights. proprietary information. conflicts of interest.

conflicts of interest.

Which method of managing conflict of interest relies upon the concept of transparency, or openness of information? Rules and policies Competition Disclosure Avoidance

disclosure

Faced with a lawsuit, Shannon retains an attorney to represent her. She reveals important information to her attorney, knowing that the information is safe because the attorney has a proprietary rights argument. client obligation. duty of confidentiality. nondisclosure agreement.

duty of confidentiality.

Patents, trade secrets, and copyrights are examples of _______ property. company agent confidential intellectual

intellectual

Luis is an attorney. Diana approaches him to represent her during a difficult divorce. Luis discovers that Diana's soon-to-be ex-husband is a member of his bowling team. This situation is an example of a(n) ________ conflict of interest. personal potential organizational impersonal

personal

Marcus is a food developer for Tacos, Taco! At work, he comes up with a creative new taco using potato chips as the shell. He tests the product out with some friends, who declare it a hit. Marcus sells the product concept to a competitor for a great deal of money, but then Tacos, Taco! files a lawsuit against Marcus. What is the basis for the lawsuit? Patent law Copyrights Property rights Competitor intelligence

property rights