When Mohammed Was Hired by Pomico,Inc

question 17

Multiple Choice

When Mohammed was hired by Pomico,Inc.,he signed the following agreement,"Upon termination of my employment with Pomico,I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement,important to protecting secret information developed in the employer's business,is:

• A) an unenforceable exculpatory agreement.
• B) an unenforceable usurious agreement.
• C) an enforceable bailment agreement.
• D) an enforceable agreement not to compete.

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Definitions:

Accelerated Depreciation

A method of depreciation where assets lose value at a faster rate in the initial years of their life.

Straight-Line Depreciation

A method of calculating the depreciation of an asset that allocates an equal amount of depreciation each year over the asset's useful life.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decline in value over time.

Accelerated Depreciation

A method of calculating the depreciation of an asset that assumes the asset will lose value more quickly in its initial years of use.