Final answer:
Trade secrets refer to a company's confidential methods and proprietary knowledge that are not disclosed to the public to maintain a competitive advantage, unlike patents or copyrights. A well-known example is the Coca-Cola formula, which is a closely guarded secret.
Step-by-step explanation:
Formulas, practices, and designs that are central to a firm's business and remain unknown to competitors are referred to as trade secrets. These include methods of production and proprietary knowledge that give a business a competitive edge and are intentionally kept confidential to maintain that advantage. For instance, the formula for Coca-Cola is one of the most famous examples of a trade secret. This formula is not protected by copyright or patent law but is instead safeguarded by the company's internal privacy measures. Trade secrets contrast with patents, which protect inventions, and copyrights, which protect original works of authorship such as books and music. Trademarks protect identifiers such as symbols or names that distinguish goods or services from those of other entities.