EBD test 2

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

fair use

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

generic meaning

The registration of a trademark has a lifetime of

10 years plus 10 year renewable periods

From where does an S corporation take its name?

Subchapter S of the Internal Revenue Code

When one designs a unique good or service, the individual is said to have used a(n) _____ approach to starting the business.

new new

The person who sells the franchise is usually required to do all of the following except:

pay a fee

A common pitfall in selecting a new venture is

poor financial misunderstanding

The inventory should be examined for which of the following?

salability, correspondence between the physical count and the book count, and up to dateness

There are two parts to a patent application, claims and

specification

Researchers developed a "Newness Framework" to help depict the differing dimensions of newness that ventures could exhibit, which include which of the following dimensions:

technology newness

What is meant by pricing for the life cycle?

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

Feasibility analysis includes technical, market, financial, organizational, and competitive analysis.

true

In the marketing shift from the 4P's to the 4C's, price shifts to customizable and promotion shifts to communities.

true

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

true

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

true

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

true

Solid analysis and evaluation of the feasibility of the product/service idea are critical tasks in starting a new business.

true

The entrepreneurial motivations of individuals relate to the entrepreneur, the environment, and the venture.

true

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

true

The entrepreneurial motivations of individuals usually relate to which of the following factors?

environment, entrepreneur, venture

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

false

Most entrepreneurs are well schooled in the technology associated with their ventures.

false

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

false

Which of the following critical factors in the prestart-up and start-up phases considers whether the venture should be classified as lifestyle, small profitable or high-growth?

growth of sales

The type of venture that is expected to attract venture capital would most likely be a

high growth venture

Venture classifications include which of the following types of venture?

high growth ventures

What is penetration pricing?

setting price to maximize market share

what is skimming?

setting price to maximize profit

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

true

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

true

New venture legitimacy is a major challenge for every entrepreneurial start-up.

true

Obtaining external financing is considered one of the major types of problems for a new venture during its first year.

true

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

true

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

70 years

When should a potential franchisee receive the FDD (Franchise Disclosure Document)?

at least 10 days before signing a contract or paying any money

Which of the following is an entity that helps new ventures to develop by providing services such as management training and office space?

business incubator

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

deduct the inartistic value of the rights from ones taxes

The social and economic environment affecting the local and regional entrepreneurship is now commonly referred to as:

entrepreneurial ecosystem

Secondary data consists of

existing information

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

false

Pricing procedures are the same for all types of ventures.

false

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

false

Surprisingly, growth of sales is generally not considered a critical factor in assessing new ventures.

false

An approach developed as a criteria selection list from which entrepreneurs can gain insights into the viability of their venture is the

feasibility criteria approach.

The individual who buys the franchise is the

franchisee

Which of the following are not trademarks?

generic words

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

in person interviews

When developing a survey, you should consider

including questions only pertaining to the study.

The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture.

true

The prospective investor should get as much information as possible on the franchisor.

true

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

lack of continuity

An agreement not to compete is also known as

legal restraint of trade

Specific forms of partnership include which of the following?

limited partnerships and limited liability partnerships

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

marketing research

Three specific phases that a new venture goes through are

prestart-up, start-up, poststart-up.

The 4Ps of marketing include all the following except:

principle

Which of the following falls under Chapter 7 bankruptcy?

the debtor is relieved of obligations

Market segmentation is

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

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

analysis of financial records

Poor financial understanding is characterized by which of the following?

inadequate understanding of costs and funding requirements

Which of the following is not a key question a prospective buyer needs to ask in buying a business?

What is the owner's personal net worth?

a market is

a group of consumers who have purchasing power and unsatisfied needs.

Franchisees have the option of whether to use the logo and symbols of the franchisor.

false

It is usually more expensive to gather secondary data than primary data.

false

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

false

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

false

Most entrepreneurs are objective when they evaluate their new idea.

false

The decision of an entrepreneur to ignore the market is a safe one if he or she is sure that the idea will be a success.

false

There is a great abundance of reliable data concerning the start-up, performance, and failure of new ventures.

false

Which of the following learning mechanisms are important for converting ideas into form in design methodology?

feedback, prototyping, and qualitative research

A _____ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon conditions.

franchise

Which of the following is an intangible asset?

goodwill

Inflated owner ego, employee-related concerns, control factors and interpersonal problems are factors involved in which of the following causes for venture failure?

managerial problems

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain _____ in the firm.

minority interest

Many entrepreneurs lack _____ for their new venture.

objectivity

Who must negotiate a final deal to purchase a business?

potential buyer

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

prepare a realistic budet for infringement

Which of the following is a factor contributing to new-venture failure?

product/market problems

An advantage to buying an ongoing business is

reduced concern over future operations, time and effort are reduced, and it may be purchased at a bargain price

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

the growth stage model

Which of the following is critical to a product's success?

timing, market approach, objectivity

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

true

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

true

In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm.

true

Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchisee.

true

The Franchise Disclosure Document (FDD) is a legally required disclosure document that must be presented to potential franchisees during presale discussions.

true

The rise of incubators, accelerators, and entrepreneurial ecosystems may be an important pathway for entrepreneurs to pursue.

true

The terms upside gain and downside loss refer to the profits the business can make and the losses it can suffer.

true

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

true

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach.

true

When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees.

true

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

true

When considering bankruptcy, entrepreneurs as sole proprietors normally prefer

chapte r13

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

claim

All of the following are ways of invalidating a trademark except

clearing out proceedings

The basic suggested venture legitimation strategies include which of the following:

conformance, manipulation, creation

The 4Cs of marketing include all the following except:

continuity

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

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

Inhibitors to marketing research include all of the following except:

distribution

Using the failure prediction model discussed in the chapter, the risk of failure can be reduced by:

using less debt as initial financing and generating revenue in the initial stages.