What does a non-disclosure agreement protect?

A non-disclosure agreement (NDA) serves to protect sensitive information that is crucial to a business's competitive advantage and overall operation. This includes company secrets, proprietary information, trade secrets, and any confidential data that, if leaked, could harm the business or give competitors an unfair advantage.

In the context of a business or agency, proprietary information might include client lists, marketing strategies, product formulations, or any strategic plans that are not public knowledge. By signing an NDA, employees or partners agree to keep this information confidential, thus providing the agency with a legal framework to prevent unauthorized sharing or use of its valuable proprietary information.

The other options do not align with the primary purpose of an NDA. For instance, while professional development needs, the right to compete, and employee evaluations are important aspects of employment, they do not pertain to the protection of confidential information in the same way that company secrets do. Therefore, the primary function of an NDA is to secure the confidentiality of internal and sensitive information, making the choice regarding company secrets and proprietary information the correct answer.