Scuba Diving

question 94

Multiple Choice

Scuba Diving.Marcy invented a new type of mask for scuba divers that was not subject to fogging.She agrees to allow Jenny to manufacture and sell the mask.She receives a sum of money for every mask that Jenny sells.Similarly,Marcy entered into an agreement with Frank to allow him to sell the masks,but only if he also purchased non-patented diving suits from Marcy.All parties proceeded to do very well with their sales.In the context of intellectual property law,payments that Marcy receives from Jenny for the sale of the mask are referred to as which of the following?

• A)Profits
• B)Receipts
• C)Royalties
• D)Payoffs
• E)Graft

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Definitions:

Purchased

The act of acquiring goods or services in exchange for money, often recorded in accounting as an increase in assets or expenses.

Insurance Policy

A contract between an insurer and a policyholder specifying the claims which the insurer is legally required to pay in exchange for an upfront premium.

Adjusting Entry

A journal entry made at the end of an accounting period to record unrecognized income or expenses, ensuring the financial statements are accurate.

Purchased

Refers to items or assets acquired by a company through the exchange of money or its equivalents.