Practice Test Chapter 8

Practice Test Chapter 8 - CHAPTER 8 Preparing the Proper...

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CHAPTER 8 Preparing the Proper Ethical and Legal Foundation MULTIPLE-CHOICE QUESTIONS Answer: E Medium Page: 177 1. According to the legal principle referred to as the __________, key employees and skilled employees owe a special duty of loyalty to their employer. A. community opportunity policy B. corporate prospect set of guidelines C. company prospect principle D. business prospect policy E. corporate opportunity doctrine Answer: B Medium Page: 177 2. Kevin, who is a manager, just gave his 30-day notice to his employer. He plans to spend the next 30 days winding things up with his current job, and trying to convince any new business that comes in to wait until he has his own firm, and do business with him. By trying to divert opportunities that legitimately belong to his current employer to himself, Kevin is violating the: A. business prospect policy B. corporate opportunity doctrine C. community opportunity doctrine D. corporate prospect set of guidelines E. company prospect policy Answer: A Medium Page: 178 3. A __________ is a promise made by an employee or another party to not disclose the company’s trade secrets. A. nondisclosure agreement B. non breach-of-trust agreement C. statutory disclosure agreement D. binding confidentiality agreement E. noncompete agreement
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Answer: E Medium Page: 178 4. A __________ prevents an individual from competing against a former employer for a specific period of time. A. noncontend agreement B. nonparticipate agreement C. nondiscovery agreement D. nondisclosure agreement E. noncompete agreement Answer: D Medium Page: 178 5. Katherine James just took a job with Intuit. As part of her employment agreement, Intuit required Katherine to sign an agreement, which states that if she leaves Intuit, she will not work for a firm that competes against Intuit for at least two years. The agreement that Katherine signed is called a: A. nondisclosure agreement B. nonparticipate agreement C. nonchallenge agreement D. noncompete agreement E. noncontend agreement Answer: C Medium Page: 178 6. Steven Price just took a job with Activision. As part of his employment contract, Steven signed an agreement that states that he will not disclose any of Activision’s trade secrets. The agreement that Steven signed is called a: A. voluntary truth agreement B. binding confidentiality agreement C. nondisclosure agreement D. non breach-of-trust agreement E. noncompete agreement Answer: C Medium Page: 180 7. A(n) __________ is a written document that deals with issues such as the relative split of the equity among the founders of the firm, how individual founders will be compensated for the cash or the “sweat equity” they put into the firm, and how long the founder will have to remain with the firm for their shares to fully vest. A.
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Practice Test Chapter 8 - CHAPTER 8 Preparing the Proper...

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