Non-Competition Agreements

question 3

Multiple Choice

Non-competition agreements:

• A)are almost always enforced by the courts
• B)will be enforced unless former employees can show that the agreements are overly broad
• C)will not be enforced unless the former employer can show that they are no more restrictive than necessary
• D)are less commonly used now than in the past
• E)none of the above

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Definitions:

Merchandising Company

A business that purchases finished goods for the purpose of resale without further processing.

Credit Sales

Sales made on credit, where payment is received after the goods or services are delivered.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the efficiency of a company in producing and selling its products.

Operating Expenses

Costs associated with the day-to-day functioning of a business, such as rent, utilities, payroll, and materials, excluding the cost of goods sold.