What, If Possible, Must the Employer Do to Make Its

question 8

Multiple Choice

What, if possible, must the employer do to make its employees not compete with the company for a year after they quit the job?

• A) Issue an internal order
• B) Does not have to do anything - the obligation is imposed on any employee by statutes
• C) Obtain a court order
• D) Have the employees sign a non-competition agreement
• E) It cannot be done

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Definitions:

Book Values

The net value of a company's assets, as recorded in its financial statements, minus its liabilities and intangible assets.

Market Value

The estimated amount for which an asset or company could be sold on the open market.

Retention Ratio

The portion of a company's earnings that is not distributed as dividends but is retained by the business for reinvestment.

Retained Earnings

The portion of a company’s net profits that are kept within the company instead of being paid out to shareholders as dividends.