Ordinary Employees Do Not Have a Fiduciary Duty And, Unless

question 118

True/False

Ordinary employees do not have a fiduciary duty and, unless there is a valid restrictive covenant in their employment contract preventing them from doing so, they are free to compete with their former employer as soon as they leave.

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Definitions:

Invested Capital

The cumulative sum of funds invested by stockholders and creditors into a firm for long-term purposes.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal.

Asset Turnover

A ratio that calculates how effectively a company utilizes its assets to produce sales income.

Sales Revenue

The total amount of money generated from sales of goods or services before any costs or expenses are subtracted.