A Covenant Not to Compete Is a Type of Restraint

question 39

True/False

A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances.

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Definitions:

Eliminate Unrecognized

The process of removing gains, losses, or other items that have not been realized or acknowledged formally from the financial statements.

Intra-entity Gross Profit

The profit recorded from transactions that occur within the same entity, often eliminated in consolidation.

Eliminate Intra-entity Transfer

The process of removing sales and purchases of goods or services made between companies within the same corporate group in consolidated financial statements.