Which of the Following Would Always Be Considered to Be

question 45

Multiple Choice

Which of the following would always be considered to be contrary to public policy?

• A) A contract which contains a covenant not to compete
• B) A contract offered on a take-it-or-leave-it basis
• C) An agreement to pay someone to make false,negative statements about a competitor's product
• D) An agreement which contains an exculpatory clause

---

Definitions:

Liquidity of Receivables

Indicates how quickly receivables can be turned into cash, reflecting a company's efficiency in managing credit it extends to customers.

Cash Sales

Transactions in which payment is made in full at the time of the sale, typically in cash.

Petty Cash Fund

A small amount of cash on hand used for covering minor expenses, managed through a system of vouchers and replenishments.

Voucher System

A control mechanism in accounting where vouchers are used to authorize the payment of a liability; an internal control for cash disbursements.