An Agreement in Which the Seller Agrees Not to Begin

question 36

Multiple Choice

An agreement in which the seller agrees not to begin or operate a similar business within a certain geographic area, or within a specified period of time, is known as a(n) :

• A) service-level agreement.
• B) agreement not to compete.
• C) arbitration agreement.
• D) nondisclosure agreement.

---

Definitions:

Dividend Revenue

Income earned from owning shares of a company, paid out from the company's earnings.

Cash Dividend

A cash payment of earnings made by a company to its stockholders.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Available-for-Sale Debt Securities

Financial assets acquired primarily for selling in the short term but may be held for a longer period, reported at fair market value on balance sheets.