Electro, Inc., makes and sells electric bikes, as well as parts and service, to customers in the United States and other countries. Can Electro prevent its employees from revealing its customer lists, pricing policies, and other confidential information, if the employees resign to work for a competitor or to enter the same business themselves? How?
What will be an ideal response?
Customer lists, pricing policies, and other trade secrets can be protected. An employer can require employees to agree not to reveal trade secrets or other confidential information if the employees go to work for a competitor or go into business for themselves. An employer can also insist that employees not work for competitors or enter a competing business, in which the employer's trade secrets will likely be disclosed and utilized. To be enforceable, these covenants not to compete must be reasonable in time and geographic limits.
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Susana keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and to discern possible threats from the competition. In which activity is Susana engaged?
A. the synergistic approach B. environmental scanning C. corporate spying D. management by observation E. competitive intelligence
The Federal Communications Commission (FCC) has jurisdiction over the content of advertisements transmitted by mass media
Indicate whether the statement is true or false
What type of retail store is Costco considered to be?
A. A department store B. A hypermarket C. A warehouse club D. A supercenter E. A category specialist
Stock X has a beta of 0.7 and Stock Y has a beta of 1.7. Which of the following statements must be true, according to the CAPM?
A. Stock Y's realized return during the coming year will be higher than Stock X's return. B. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount. C. Stock Y's return has a higher standard deviation than Stock X. D. If the market risk premium declines, but the risk-free rate is unchanged, Stock X will have a larger decline in its required return than will Stock Y. E. If you invest $50,000 in Stock X and $50,000 in Stock Y, your 2-stock portfolio would have a beta significantly lower than 1.0, provided the returns on the two stocks are not perfectly correlated.