Why Are Contracts Prohibiting Competition with a Buyer of a Business

question 6

Multiple Choice

Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?

• A) To protect the goodwill of the business
• B) To protect the employees from losing their jobs
• C) To protect the interest of the public
• D) To protect wage earners from unwisely impoverishing themselves

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Definitions:

Salary Requirements

The compensation a job applicant expects to receive for a position, typically discussed during the hiring process.

Prospecting Letter

A letter sent by a salesperson or business to potential clients or customers to introduce their products or services and generate new business.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Industry

A sector of the economy that involves the manufacturing and production of goods or services.