An Employee Has Been Developing a Company Product for the Last

question 58

Multiple Choice

An employee has been developing a company product for the last 3 years when he decides to leave the company.That product is a glue that remains tacky for hours,enabling certain types of artwork to be performed.After he leaves the company,the employee joins another company and finalizes the glue development for his new company.Who is likely to own the rights of the intellectual property involved in the formulation of the glue?

• A)the employee; he invented it
• B)the original company who paid for the product to be developed
• C)the new company because the product was released while the employee worked for it
• D)The glue cannot be considered intellectual property.

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Definitions:

Invoice Price

The price indicated on an invoice, representing the cost of goods or services purchased.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, rather than continuously.

Cost of Goods Sold

The costs directly associated with producing a company's goods for sale, including expenses for labor and materials.

Inventory Account

Inventory Account is an asset account on the balance sheet that reports the value of a company's inventory - raw materials, work-in-process, and finished goods.