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While consumers should know what ingredients are in a product, they do not have the right to know a company's secret formula. This type of disclosure is called?

User Mightimaus
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Final answer:

A trade secret is the term for the type of disclosure that refers to a company's secret formula or practice, which does not need to be shared with consumers, such as the formula for Coca-Cola.

Step-by-step explanation:

The type of disclosure the student is asking about is known as a trade secret. Trade secrets are a body of law that protects the confidential knowledge or practices of a business from being disclosed to the public or falling into the hands of competitors.

While consumers have the right to know what ingredients are in a product and the government may require certain disclosures, such as nutritional information or warnings, companies are not required to reveal their secret formulas or manufacturing processes that give them a competitive edge. An example of a trade secret is the formula for Coca-Cola, which is known to be one of the most guarded and famous trade secrets in the world.

User Mark Walker
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