Which term represents data like trade secrets and intellectual property that would seriously impact the business if disclosed?

• A. Public Data
• B. Confidential Data
• C. Sensitive Data
• D. Private Data

Answer: (B)

Data classification centers on how severe the impact would be if information were disclosed. Trade secrets and intellectual property are highly sensitive because their exposure could seriously harm the business, from losing competitive advantage to financial losses. The term that best fits this risk level is confidential data, which is restricted to authorized people and protected to prevent disclosure. Public data is meant to be shared openly, so it wouldn’t carry the same risk. Private data usually refers to personal information about individuals, and while sensitive data covers high-risk information, trade secrets and IP are typically categorized as confidential data in this context.