Final answer:
A 'trade secret' is the legally protected method that businesses use to keep their production methods confidential from competitors, such as the well-known formula for Coca-Cola.
Step-by-step explanation:
In the business world, a trade secret is recognized as a legally acceptable way for any business to keep knowledge of its particular methods of production from being known by competing firms. A trade secret can include formulas, practices, processes, designs, instruments, patterns, or compilations of information that are not generally known or readily accessible to others.
Competitors are not legally allowed to steal these secrets even if the company does not hold a patent for their innovation. A renowned example of a trade secret is the formula for Coca-Cola, which the company has kept confidential rather than protecting it through patent or copyright, making it a valuable piece of intellectual property.