Which of the Following Refers to a Part of a Contract

question 33

Multiple Choice

Which of the following refers to a part of a contract in which a person agrees not to open a certain type of business or seek employment doing certain things in a particular area for a period of time?

• A) Noncompete clause
• B) Exculpatory clause
• C) Hold harmless clause
• D) Interstate clause

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Definitions:

Variable Cost

A cost that varies with the level of output or production activity, increasing as production increases and decreasing as production decreases.

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, and opportunity costs.

Terms Of Sale

Conditions agreed upon by the buyer and seller covering payment, delivery, and warranties, which define the responsibilities of each party in a transaction.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.