question

Items that can qualify for patent protection include all of the following except

answer

Ideas

question

Design patent protection lasts for ____ years

answer

14

question

Patents that are not design patents have _____ years of protection.

answer

20

question

A patent gives the holder a temporary

answer

monopoly

question

There are two parts of a patent application, claims and ______.

answer

Specification

question

The two parts to a patent application are specification, and _______

answer

Claims

question

The text of a patent application is known as the

answer

specification

question

According to the U.S. Patent Office, the process of obtaining a patent takes how many months?

answer

24

question

The part of a patent application which identifies the features that are protected are known as the

answer

Claim

question

If an entrepreneur concludes that an innovation will withstand any legal challenge, a patent should be

answer

pursued

question

To effectively pursue a patent violation, experts recommend that the entrepreneur

answer

prepare a realistic budget for infringement

question

The specification section of a patent application should include all of the following except

answer

a budget for handling infringement

question

In order to obtain a patent, an application should be filed with

answer

The Patent and Trademark Office of the Department of Commerce

question

What percentage of issued patents is considered commercially valuable?

answer

a very small percentage

question

A person who loses an infringement battle in court may have to pay

answer

extra legal fees

question

An infringement budget deals with

answer

legal battles

question

The owner of a copyright may do all of the following except

answer

deduct the intrinsic value of rights from one's taxes

question

Anyone who violates an author's exclusive rights under a copyright is liable for:

answer

infringement

question

For the author of creative material to obtain a copyright, the material must be in ______ form.

answer

Tangible

question

Because of the ______ doctrine, it is sometimes difficult to establish infringement.

answer

Fair use

question

The determination of fair use of copyrighted material is based on

answer

the effect of use on potential market

question

Works created after January 1, 1978, have a copyright for the life of the author plus

answer

70 years

question

Copyrights may be expressed in

answer

all of the above (books, periodicals, motion pictures)

question

Legal protection is granted to computer programs in what form?

answer

copyright

question

Copyrights can be placed on all of the following except

answer

ideas

question

A trademark is a distinctive _____ that is identified with a company's product.

answer

name

question

Which of the following is not a trademark?

answer

a sales price

question

Which of the following are not trademarks?

answer

generic words

question

Which of the following is a useful rule to avoid pitfalls in selecting a trademark?

answer

Never choose a trademark without first conducting a trademark search

question

The registration of a trademark has a lifetime of

answer

10 years plus 10-year renewable periods

question

Which of the following is a way in which a trademark may be invalidated?

answer

cancellation proceeding

question

The process of trademark registration is

answer

expensive

question

All of the following are ways of invalidating a trademark except

answer

clearing-out proceedings

question

In the context of trademark invalidation, if a party seeks to prove that a trademark has not been used within six years of registration, it is known as

answer

cleaning-out procedure

question

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of

answer

generic meaning

question

The emerging body of law governing cyberspace is often referred to as:

answer

cyberlaw

question

B corporations' legal structure expands corporate accountability to encompass all of the following except:

answer

comprehensive and transparent environmental standards

question

Of the following statements, which is true of sole proprietorships?

answer

A sole proprietorship is a business that is owned and operated by one person

question

All of the following are recognized as advantages of partnerships except:

answer

possible tax advantages

question

Who defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law."

answer

Justice John Marshall

question

How does death affect the duration of a corporation?

answer

A corporation is unaffected by the death of a shareholder

question

Specific forms of partnership include which of the following?

answer

limited partnerships and limited liability partnerships

question

From where does an S corporation take its name?

answer

Subchapter S of the Internal Revenue Code

question

Which of the following is an indicator that an entrepreneur's business is failing?

answer

liquidation

question

Which is not one of the major sections of the bankruptcy act?

answer

liquidation

question

Which of the following are suggestions to minimize legal costs?

answer

visit the lawyer during normal hours of operation

question

Which of the following falls under Chapter 7 bankruptcy?

answer

the debtor is released of obligations

question

A typical symptom of impending bankruptcy failure is when

answer

other firms seem to be selling products that are a generation ahead

question

When considering bankruptcy, entrepreneurs as sole proprietors normally prefer

answer

Chapter 13

question

Entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture.

answer

true

question

Laws governing intellectual property rights include copyrights, trademarks, and leases.

answer

false

question

A patent is an intellectual property right.

answer

true

question

Design patents last for 20 years.

answer

false

question

Patents eventually expire.

answer

true

question

The patent process is not complex; neither does it require careful planning.

answer

false

question

The two parts of a patent application are specification and claims.

answer

true

question

The object of a patent is to provide the holder with a temporary monopoly over his or her innovation.

answer

true

question

A copyright provides exclusive rights to creative individuals for the protection of their artistic productions.

answer

true

question

Works created and copyrighted after January 1, 1978, are protected for the life of the author plus 70 years.

answer

true

question

Anyone who violates an author's exclusive rights under a copyright is liable for infringement.

answer

true

question

Because of the fair u.se doctrine, it is sometimes difficult to establish infringement

answer

true

question

Copyrights have to be registered with the Copyright Office.

answer

false

question

A trademark is a distinctive name, mark, or symbol that is identified with a company's product.

answer

true

question

An example of a trademark is a logo.

answer

true

question

Once issued, the trademark is listed with the Patent and Trademark Office.

answer

true

question

The registration of a trademark last for 40 years, with continuous renewal every 10 years.

answer

false

question

Trademark registration and search is not costly.

answer

false

question

If infringement can be proven in court, an award may be given to the trademark holder.

answer

true

question

Every business at some point needs the services of an attorney.

answer

true

question

Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation.

answer

true

question

It often is possible to obtain more capital and a better range of skills in a sole proprietorship than in a partnership.

answer

false

question

One of the principle advantages of a corporate form of ownership is that liability (the most money a person can lose) is limited to an individual's investment.

answer

true

question

At present, it is illegal to attempt incorporation over the internet.

answer

false

question

Because corporate law makes it difficult for businesses to consider employee, community, and environmental interests in their decision making, the B corporation has been introduced.

answer

true

question

The Bankruptcy Act was set up in order to provide assistance to both debtors and creditors.

answer

true

question

Chapter 7, Chapter 9, and Chapter 11 are the most common forms of bankruptcy.

answer

false

question

Straight bankruptcy is called liquidation.

answer

true

question

Chapter 13 bankruptcy involves reorganization of the enterprise.

answer

false

question

Business owners normally prefer Chapter 7 bankruptcy over any other form of bankruptcy.

answer

false

question

In the market shift from the 4Ps the the 4Cs, price shifts to choice and promotion shifts to communities.

answer

true

question

Marketing research involves the gathering of information about a particular market, followed by analysis of the information.

answer

true

question

The first step in marketing research is to gather primary data

answer

false

question

Marketing information that has already been compiled is known as secondary data.

answer

true

question

It is usually more expensive to gather secondary data.

answer

false

question

Most firms generally gather primary data and then see if there is secondary data to supplement it.

answer

false

question

Geographic flexibility is greater for telephone interviews than for in-person interviews.

answer

true

question

Only major strategic decisions need to be supported through marketing research.

answer

false

question

Social media marketing is the application of online collaborative media for marketing purposes.

answer

true

question

Control versus communication is an important distinction between social media marketing and traditional marketing.

answer

false

question

The role of the customer in social media marketing is as an external source of intelligence and feedback.

answer

false

question

Mobile social media applications can be differentiated based on location-sensitivity as well as on time-sensitivity.

answer

true

question

Effective marketing is based on three key elements: marketing philosophy, market segmentation, and consumer behavior.

answer

true

question

A consumer driven marketing philosophy often relies on direct selling.

answer

false

question

Shopping goods are the products that consumers take time to examine carefully and compare for quality and price.

answer

true

question

Babies and career are indicative of the priorities that shape the buying decisions of persons in the nest building stage of the family life cycle.

answer

true

question

Marketing planning is the process of determining a clear, comprehensive approach to the creation of customers.

answer

true

question

A marketing formation system compiles and organizes data according to a customer's sex, age, and geographic location.

answer

false

question

Sales forecasting is a process of projecting future sales through educated guesses.

answer

false

question

A firm's pricing structure dictates almost no knowledge to customers.

answer

false

question

Even after marketing research is done, many entrepreneurs are unsure of how to price their products or services.

answer

true

question

Pricing procedures are the same for all types of ventures.

answer

false

question

Pricing the social media age is sometimes based on a model that offers basic levels of service for free.

answer

true

question

Skimming is setting prices at such a low level that products are sold at a loss.

answer

false

question

Pricing for the product life cycle is generally ineffective for luxury goods.

answer

false

question

The 4Cs of marketing include all the following except:

answer

continuity

question

The 4Ps of marketing include all the following except:

answer

principle

question

Which of the following statements about marketing skills of great entrepreneurs is true?

answer

They have clear visions of what they want to achieve next

question

A market is

answer

a group of consumers who have purchasing power and unsatisfied needs

question

The key to marketing analysis is

answer

marketing research

question

All of the following techniques are used in gathering primary data except:

answer

analysis of financial records

question

In defining research objectives, the entrepreneur should include

answer

consumer tastes

question

Surveys include contact by

answer

all of the above (mail, telephone, personal interviews)

question

Secondary data consists of

answer

existing information

question

Which of the following is not a method of collecting primary data?

answer

review of government publicatoins

question

Which of these survey methods is the most expensive to conduct?

answer

interviews

question

Which of these survey methods has the lowest nonresponse rate?

answer

personal interviews, door to door

question

When developing a survey, you should consider

answer

including questions only pertaining to the study

question

Which of these survey methods typically has the lowest respondent cooperation?

answer

mail surveys

question

Inhibitors to marketing research include all of the following except:

answer

distribution

question

The textbook recommends that social media marketers consider three aspects of social media when using social media tools for marketing purposes. What are they?

answer

creating something of value, enabling customer promotion, and encouraging participation

question

Several aspects distinguish social media marketing from the traditional marketing. The textbook discusses all of the following except:

answer

revelancy

question

Which of the following statements about traditional marketing is not true?

answer

In traditional marketing, the role of a marketer is that of internal and external change agent.

question

Which of the following statements about entrepreneurial marketing is not true?

answer

In entrepreneurial marketing, actions are constrained by resources currently controlled.

question

_______ is the use of portable wireless devices to connect to the Internet.

answer

Mobile computing

question

Of the following, which is not associated with entrepreneurial tactics in market research?

answer

in-person interviews

question

Which of the following is a marketing philosophy that focuses on personal selling?

answer

sales-driven philosophy

question

The sales-driven philosophy

answer

focuses on personal selling and advertising to persuade customers to buy the company's output

question

Which of the following influences the choice of marketing philosophy?

answer

competitive pressure

question

Market segmentation is

answer

the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest.

question

Marketing segmentation focuses on which variable?

answer

characteristics of different consumers

question

Which of the following are the two major variables needed to identify specific market segments?

answer

demographic and benefit

question

Which of the following is a demographic variable?

answer

income

question

Psychological characteristics of consumers include which of the following?

answer

aspiration

question

Products that consumers will take time to examine carefully and compare for quality and price are

answer

shopping goods

question

Products or services that consumers make a special effort to find and purchase are

answer

specialty goods

question

All of the following are identified as stages in consumer buying behavior, according to the family life cycle, except:

answer

specialty occasion

question

Of the following, which does the textbook identify as critical to the market planning process?

answer

marketing research

question

The purpose of marketing research is _______.

answer

to identify customer

question

A marketing information system compiles and organizes data relating to ______ from the customer base.

answer

revenue

question

Which of the following is not a key factor affecting a marketing information system?

answer

size of the system

question

What part of the market plan emphasizes the factors that contribute to a firm's competitive edge?

answer

the appraisal of marketing strengths and weaknesses

question

The final critical factor in the market-planning process is

answer

evaluation

question

All of the following factors affect pricing strategies except:

answer

government mandates

question

Sometimes consumers associate a higher price with

answer

higher product quality

question

What is meant by pricing for the life cycle?

answer

that pricing needs to be adjusted at each stage in a product's life cycle

question

What is penetration pricing?

answer

setting price to maximize market share

question

What is skimming?

answer

setting price to maximize profit

question

What is the purpose of loss-leader pricing?

answer

to switch customers to new products

question

Of the following pricing models, which is not indicative of pricing the the social media age?

answer

the growth stage model

question

Financial information pulls together all the information presented in the other segments of the business.

answer

true

question

The set of assumptions on which financial projections are based have little meaning.

answer

false

question

It is typical for a firm to prepare an operating budget but not a cash budget.

answer

false

question

A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.

answer

true

question

The cash-flow budget provides an overview of cash inflows and outflows for the budget period.

answer

true

question

The first type of expense to be estimated when preparing an operating budget is cost of goods sold.

answer

true

question

The first step in creating an operating budget is to prepare the sales forecast.

answer

true

question

Using regression analysis to estimate the relationship between expected sales and another variable is rarely used.

answer

false

question

After the operating budget has been prepared, an entrepreneur can proceed to the next phase of the budget process, the cash flow budget.

answer

true

question

The first step in preparation of the cash flow budget is the identification and timing of cash outflows.

answer

false

question

The typical business will have cash inflows from three sources: cash sales, cash payments received on account, and loan proceeds.

answer

true

question

Pro forma statements show the firm's present financial position.

answer

false

question

the pro forma income statement is prepared before the pro forma balance sheet.

answer

true

question

The traditional accounting equation is: assets + liabilities = owner's equity

answer

false

question

Capital investments or capital expenditures are expected to last beyond one year.

answer

true

question

Capital budgeting is used to help the entrepreneur plan for capital expenditures.

answer

true

question

The principle objective of capital budgeting is to maximize the value of the firm.

answer

true

question

Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.

answer

true

question

Contribution margin is the difference between the selling price and the fixed cost per unit.

answer

false

question

An entrepreneur must graph at least two numbers, total sales and total expenses, when using the graphic approach for break-even analysis.

answer

false

question

The handling questionable costs approach of break-even analysis was specifically designed for entrepreneurship firms.

answer

true

question

Horizontal analysis looks at financial statements over time.

answer

true

question

Vertical analysis is the application of ratio analysis to all of the financial statements to find accounting mistakes.

answer

true

question

A gross margin ratio of 38 percent means that for every $1 of sales, a firm produces 62 cents of gross margin.

answer

false

question

Accounts receivable turnover measures the rate at which accounts receivable are being collected on a monthly basis.

answer

false

question

Financial information is important to entrepreneurs because:

answer

a and b are correct: a. it pulls together all the information presented in other segments of the business. b. it quantifies all the assumptions concerning business operations

question

Which of the following statements is not true about financial assumptions?

answer

They do not necessarily correlate with information from other parts of the business.

question

One type of budget used by the entrepreneur is

answer

an operating budget

question

A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an

answer

operating budget

question

The first step in constructing an operating budget is

answer

preparation of the sales forecast

question

In the simple linear regression analysis equation, Y=a+bx, x represents

answer

the factor on which sales are dependent

question

A manufacturing firm needs to establish which of the following budgets?

answer

a material purchases budget

question

A variable cost

answer

changes in the same direction and in direct proportion to changes in operation activity

question

For a manufacturing firm, the production budget represents

answer

the number of units that must be produced in order to meet the sales forecast

question

In the simple linear regression analysis equation, Y=a+bx, b represents

answer

the slope of the line

question

In the production budget for a manufacturing firm, the number of units needed in inventory is determined by

answer

the sum of the desired ending inventory and the number of units to be sold

question

The last step in preparing the operating budget is to

answer

estimate operating expenses

question

Production requirements are figured by subtracting the period's beginning inventory from

answer

inventory needed for that period

question

A key concept in developing an expense budget is that of

answer

fixed costs

question

After the firm has forecast its sales for the budget period

answer

expenses are estimated

question

When using trend line analysis, how many periods are required?

answer

five

question

More established ventures will use a sales forecast model where the estimation of current sales will increase a certain percentage over the prior period's sales. This percentage is based upon

answer

a trend line analysis

question

Cash inflows come from

answer

cash sales

question

The cash flow budget describes

answer

cash inflows/cash outflows

question

A fixed cost

answer

does not change in response to changes in activity for a given period of time

question

The first step in the preparation of the cash flow budget is the

answer

identification and timing of cash inflows

question

Which of the following are needed in preparing a pro forma balance sheet?

answer

The last balance sheet prepared before the budget period began

question

The traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet is

answer

assets=liabilities+equity

question

Which of the following are forms of proforma statements?

answer

a and b a. income statements b. balance sheets

question

How many months of the year should be illustrated in the first pro forma income statement?

answer

twelve

question

Contained in the pro forma balance sheet is

answer

the cost budget

question

When using the internal rate of return method, the future cash flows are discounted at a rate that makes the net present value equal to

answer

zero

question

The principle objective of capital budgeting is to

answer

maximize the value of the firm

question

Net present value method is capital budgeting technique that helps to minimize some of the shortcomings of the payback method by

answer

recognizing future cash flows beyond the payback period

question

A method that discounts future cash flows at a rate that makes the net present value of the project equal to zero is known as

answer

internal rate of return

question

Capital budgeting is designed to show

answer

how many projects, in total, should be selected

question

Despite the drawbacks of the payback method, the entrepreneur should continue to use it because

answer

it is very simple to use in comparison with other methods

question

The rate used to adjust future cash flows to determine their value in present-period terms is the

answer

cost of capital

question

Investments in which returns are expected to extend beyond one year are referred to as

answer

capital investments

question

One of the easiest capital budgeting methods to understand is

answer

the payback method

question

Many companies continue to use the payback method. It is

answer

more favorable in its short-term effects on earnings

question

The concept of the net present value method works on the premise that

answer

a dollar today is worth more than a dollar in the future

question

Loan proceeds are not directly tied to

answer

sales revenue

question

Break-even analysis is used to assess

answer

expected product profitability

question

Contribution margin is the difference between

answer

selling price and variable cost per unit

question

The contribution margin approach formula is

answer

FC = (SP - VC) S

question

When using the graphic approach to a break-even analysis, the entrepreneur must plot which of the following?

answer

total revenue and total costs

question

Which of the following is a decision rule for handling questionable costs?

answer

The product should not be profitable if expected sales do not exceed the lower break-even point.

question

Break-even analysis is a technique commonly used to assess the

answer

expected product profitability

question

In handling questionable costs, the cost in question is substituted first as ______ and then as a ______.

answer

fixed cost; variable cost

question

Comparing financial numbers in order to make decisions is referred to as:

answer

ration analysis

question

Ration analysis can be applied from which of the following directions?

answer

vertical and horizontal

question

An inventory turnover ratio of 9.80 means that the average dollar volume of inventory is used up almost _______ times during the fiscal year.

answer

10

MGT241 – Flashcard

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards