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:

Estimated Net Realizable Value

The anticipated fair value of an asset in terms of the amount for which it could be sold, minus the estimated costs of sale or disposal.

Percentage of Net Sales

A financial ratio that represents certain expenses, liabilities, or profits as a percentage of the net sales, used to analyze the financial health and performance of a business.

Bad Debts

Amounts owed to a company that are considered uncollectible, typically due to the debtor's inability to pay.

Factoring Commissions

Factoring commissions are fees paid to a factor, or financial intermediary, for advancing funds to a business by purchasing its accounts receivable.