Which of the Following Is Most True Regarding Noncompetition Clauses

question 15

Multiple Choice

Which of the following is most true regarding noncompetition clauses in contracts?

• A)Such clauses are not used during employment contracts.
• B)Such clauses will be enforced if they have a legitimate business purpose.
• C)Such clauses are enforced only for protecting the environment and conserving resources.
• D)Such clauses help in promoting free trade.

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Definitions:

Projected Revenue

An estimate of the amount of money that an organization anticipates earning over a specific period in the future.

Solver

A feature in software, such as Microsoft Excel, that performs optimization, finding the best solution to a problem given constraints.

Price/Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often used to understand the sensitivity of consumers to price changes.

Local Optimum Solution

A solution to an optimization problem that is better than or equal to all nearby solutions but not necessarily the best overall, or global, solution.