Andrew Owns a Store in Polk County

question 59

Multiple Choice

Andrew owns a store in Polk County.His trade extends throughout River City,but not beyond the county limits.He sells his store to Betty and,as part of the transaction,agrees not to engage in the same business anywhere within the state for a period of three years.The agreement:

• A) is reasonable.
• B) is unreasonable,but enforceable since Andrew agreed to it.
• C) unduly interferes with the interests of the public.
• D) is reasonable,but only if Betty paid Andrew enough for the store to compensate him for lost business for three years.

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Definitions:

Net Profit

The amount of money left over from revenues after all expenses have been deducted, representing the actual profit of a business.

Convertible Bond

A fixed-income debt security that the holder can convert into a specified number of shares of common stock in the issuing company.

Conversion Price

The dollar amount of a bond’s par value that is exchangeable for one share of stock.

Conversion Value

The value of a convertible security if it were converted into a different asset, typically shares of the issuing company's stock.