Agreeing Not to Open a Competing Business Could Be Consideration

question 13

True/False

Agreeing not to open a competing business could be consideration.

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Definitions:

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated as net profit divided by the cost of the investment.

Net Operating Income

A financial metric that calculates the profit generated from a company's normal business operations, excluding expenses and incomes from non-operational activities.

Operating Assets

Assets utilized in the regular course of business operations to generate revenues, such as machinery, buildings, and equipment.

Residual Income

The amount of income that an individual or company has after all operating expenses, including cost of goods sold and taxes, have been paid.