As Part of a Sale of a Business,Lee Signs a Covenant

question 50

Multiple Choice

As part of a sale of a business,Lee signs a covenant not to compete that is unreasonable in its essential terms.To prevent undue hardship,a court will most likely

• A)enforce the covenant as written.
• B)enforce the covenant but evaluate its effects over time.
• C)reform the covenant's terms.
• D)refuse to enforce the covenant without additional consideration.

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Definitions:

Interpreting

The process of explaining or understanding the meaning of something, often related to data or information.

Classifying

The process of systematically arranging business transactions or financial statements' components into categorized groups for analysis and reporting.

Bookkeeping

The recording function of the accounting process.

Accounting

A system that measures the business’s activities in financial terms, provides written reports and financial statements about those activities, and communicates these reports to decision makers and others.