Orin Signs a Covenant Not to Compete with His Employer

question 45

Multiple Choice

Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it

• A) ​does not require either party to obtain a business license.
• B) ​is reasonable with respect to geographic area and duration.
• C) ​relieves the employer from liability for any injury to Orin.
• D) ​none of the choices.

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Definitions:

Common Stock

Equity ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Stock Split

A measure taken by a company to split its current shares into numerous ones, aiming to increase the shares' liquidity.

Par Value

The nominal or face value of a stock or bond, representing the minimum amount the security is stated to be worth.

Common Stock Account

An equity account on a company's balance sheet representing the total amount of money invested by common stockholders plus the retained earnings of the company.