Vernon Runs Buzz,his Own Event Management Company,which Frequently Organizes Large

question 50

Multiple Choice

Vernon runs Buzz,his own event management company,which frequently organizes large corporate events.He has built a good reputation for organizing corporate events with a fair degree of professionalism at reasonable costs.He works out of his old house with a staff of about 55 employees.Vernon's company can be categorized as a:

• A)multinational corporation.
• B)limited liability company.
• C)franchise.
• D)public sector holding.
• E)small business.

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Definitions:

Covenant Not To Compete

A contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area. Although covenants not to compete restrain trade, they are commonly found in partnership agreements, business sale agreements, and employment contracts. If they are ancillary to such agreements, covenants not to compete will normally be enforced by the courts unless the time period or geographic area is deemed unreasonable.

Restriction

A restriction refers to a limitation or condition placed on the use, development, or transfer of property or rights.

Intoxicated

A state of being under the influence of drugs or alcohol to the extent that mental and physical capabilities are significantly impaired.

Legal Consequences

The results or penalties that arise from actions or decisions that have legal implications or breaches of law.