Matt Accepts a Job Offer as a Chemical Engineer in the R&D

question 10

Multiple Choice

Matt accepts a job offer as a chemical engineer in the R&D department of Tulip Inc., paint-manufacturing company. After accepting the job offer, he signs an employment contract stating that the results of his research would be the sole property of the company. Matt comes up with an innovative paint formula which could withstand extreme temperatures. He receives a promotion and a handsome package for his work. However he is annoyed that the formula was not patented in his name. In the context of the given scenario, which of the following statements is true?

• A) The advances made by Matt on the job fall under the management and control of his organization.
• B) Matt's formula is his own intellectual property and he has the right to use it as he sees fit.
• C) Since the formula can be patented only by Matt, the company is legally required to pay him 30% of the total profits gained.
• D) The company can receive a fine up to $5 million for drawing a contract that is unenforceable.

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Definitions:

Management Accountant

A management accountant is a finance professional who prepares and analyzes financial data to help managers make informed business decisions, focusing on budgeting, performance evaluation, and cost management.

Decision Model

A framework or guideline designed to facilitate the making of business decisions through systemic analysis and evaluation.

Collecting Data

The process of gathering information or facts from various sources for analysis, which can then be used for making informed decisions or developing strategies.

Accounting Information System

A system of collecting, storing, and processing financial and accounting data that is used by decision makers.