Samantha Was in the Final Stages of Selling Her Existing

question 79

Multiple Choice

Samantha was in the final stages of selling her existing business,but she backed out of the deal at the last minute because the buyer asked her to sign a contract stating that she would not enter into a similar business within the state for at least 15 years.This is an example of

• A) A reasonable intellectual property contract
• B) An unreasonable intellectual property contract
• C) A reasonable noncompete clause
• D) An unreasonable noncompete clause

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Definitions:

Accounts Receivable

Funds that clients or customers have yet to pay to a company for products or services already provided.

Accounts Payable

Obligations a company has to pay back to lenders for products and services bought on credit.

Salary Expense

The total amount paid to employees for services rendered during a specific period before any deductions are made.

Fees Earned

Revenue generated from services provided.