Certified Protection Professional (CPP) Practice Exam

What distinguishes a trade secret from other confidential information?

1. Ease of disclosure

2. Continuous business application

3. Limited access to information

4. Value to competitors

The correct answer is: Continuous business application

A trade secret is distinguished from other forms of confidential information by its continuous business application. This means that trade secrets are not only confidential but are also actively used in a business's operations to maintain a competitive advantage. They typically include formulas, practices, processes, designs, instruments, patterns, or compilations of information that are not generally known or readily accessible to others. While ease of disclosure and limited access to information may apply to various types of confidential information, these characteristics do not specifically define a trade secret. The continuous business application emphasizes that these secrets play a critical role in the day-to-day functioning of a business and are thus protected as they contribute significantly to the long-term success and competitiveness of the organization. The value to competitors is also a critical aspect but is often a byproduct of the secret’s application in business rather than an inherent distinction.