Why Are Restraining Orders Dangerous for a Startup

question 19

Multiple Choice

Why are restraining orders dangerous for a startup?

• A)They paralyze the company until the court battle is resolved
• B)They forbid the company to go public
• C)It's a first step of bankruptcy
• D)The board of directors has to be reelected, which is a very long process
• E)They violate the rights of minority shareholders

---

Definitions:

Ending Inventory

The cumulative worth of merchandise ready for sale at the conclusion of a financial period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Profit Margin Ratio

A financial metric that measures the percentage of profit a company earns from its total revenue.

Net Income

The residual income of a business post all deductions, including taxes and expenses, from its gross income.