Test 3

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

a. True

Crowdfunding is a growing practice for entrepreneurs to seek funding for their ventures by raising monetary contributions from a large number of people via the Internet. a. True b. False

a. True

Sources of debt financing include trade credit, accounts receivables, factoring, and finance companies. a. True b. False

a. True

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

a. True

One of the advantages of public offerings is a. liquidity. b. disclosure. c. requirements. d. cost.

a. liquidity.

The 4Ps of marketing include all the following except: a. principle b. product c. price d. promotion

a. principle

Which of the following is a danger not associated with peer-to-peer (P2P) lending? a. privatization of business plans b. funding success rate c. potential tax liability d. uncertain regulatory environment

a. privatization of business plans

A disadvantage of debt financing is a. regular interest payments. b. possible cash flow enhancement. c. inhibition of growth and development due to equity investments. d. relinquishment of ownership.

a. regular interest payments.

Which of the following are not trademarks? a. symbols b. mottos c. names d. generic words

d. generic words

Major trends in the venture capital field today include all of the following except a. less specialized and more homogenous funds b. emerging feeder funds c. decrease in start-up investment amounts d. global reach

d. global reach

What is skimming? a. setting price to maximize profit b. setting price to maximize market share c. setting price to switch customers to new product lines d. setting price to match the competition

a. setting price to maximize profit

What is meant by pricing for the life cycle? a. that pricing needs to be adjusted at each stage in a product's life cycle b. that pricing needs to be increased at each stage in a product's life cycle c. that pricing of new products needs to start out low and end high d. that pricing of new products needs to start out high and end low

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

Works created after January 1, 1978, have a copyright for the life of the author plus a. 70 years. b. 50 years. c. 14 years. d. 10 months.

a. 70 years.

Which is an important question for the entrepreneur to ask when evaluating the venture capitalist? a. Is the person someone with whom the entrepreneur can work? b. Is the person a close relative? c. Is the person wealthy? d. Is the person a college graduate?

a. Is the person someone with whom the entrepreneur can work?

From where does an S corporation take its name? a. Subchapter S of the Internal Revenue Code b. state law c. S Lab d. Uniform Commercial Code

a. Subchapter S of the Internal Revenue Code

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

a. True

Equity financing is money invested in the venture with no legal obligations to repay the principal amount of interest or interest rate on it. a. True b. False

a. True

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

a. True

Informal risk capitalists are often referred to as "business angels." a. True b. False

a. True

It is usually more expensive to gather secondary data than primary data. a. True b. False

a. True

Marketing information that has already been compiled is known as secondary data. a. True b. False

a. True

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

a. True

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

a. 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. a. True b. False

a. True

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

a. True

Private placement is a method of raising capital through the private placement of securities. a. True b. False

a. True

Social media marketing is the application of online collaborative media for marketing purposes. a. True b. False

a. True

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures. a. True b. False

a. True

Three primary legal forms of organization are the sole proprietorship, the partnership, and the corporation. a. True b. False

a. True

Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money. a. True b. False

a. True

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

a. True

Because the advantages of going public outweigh the disadvantages, it is in a corporation's best interest to go public. a. True b. False

b. False

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

b. False

Only major strategic decisions need to be supported through marketing research. a. True b. False

b. False

Pricing procedures are the same for all types of ventures. a. True b. False

b. False

Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, local professionals. a. True b. False

b. False

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

b. False

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

b. False

Venture capitalists, surprisingly, require little information before they make an investment. a. True b. False

b. False

Chapter 7, Chapter 9, and Chapter 11 are the most common forms of bankruptcy. a. True b. False

b. False (Chapter 7, 11, 13)

Laws governing intellectual property rights include copyrights, trademarks, and leases. a. True b. False

b. False (Not leases)

A market is a. a group of consumers who have purchasing power and unsatisfied needs. b. a way of gaining consumer data. c. a segment of the economy. d. a group of known purchasers.

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

Which of the following includes information about the proposal size, financial projections, investment recovery, competitive advantage, and company management? a. business plan b. evaluation process c. VC evaluation perspective d. VC reference sheet

a. business plan

Because of the _____ doctrine, it is sometimes difficult to establish infringement. a. fair use b. acquisition c. freedom of information d. right to publish

a. fair use

An informal risk capitalist is referred to as: a. your neighbor. b. a business angel. c. a retiree. d. someone with extra money to invest but who is not interested becoming an entrepreneur.

b. a business angel.

All of the following techniques are used in gathering primary data except: a. observational methods b. analysis of financial records c. surveys d. experimentation

b. analysis of financial records

That part of a patent application which identifies the features that are protected is known as the a. particular. b. claim. c. identification. d. essence.

b. claim.

When developing a survey, you should consider a. including questions only pertaining to the study. b. ask leading and biased questions. c. giving concise but incomplete instructions. d. the personality of the respondents.

a. including questions only pertaining to the study.

All of the following are ways of invalidating a trademark except a. cleaning-out proceedings. b. clearing-out proceedings. c. abandonment. d. generic meaning.

b. clearing-out proceedings

Which of the following is not a type of debt financing? a. private placement b. trade credits c. finance companies d. accounts receivables

a. private placement

When considering bankruptcy, entrepreneurs as sole proprietors normally prefer a. Chapter 5. b. Chapter 7. c. Chapter 11. d. Chapter 13.

d. Chapter 13.

Crowdfunding campaigns provide entrepreneurs with a number of benefits including which of the following? a. funding b. engagement c. profile d. all of the above

d. all of the above

The 4Cs of marketing include all the following except: a. cocreation b. communities c. choice d. continuity

d. continuity

Inhibitors to marketing research include all of the following except: a. cost b. irrelevancy c. complexity d. distribution

d. distribution

When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of a. abandonment. b. cancellation proceedings. c. cleaning-out procedure. d. generic meaning.

d. generic meaning.

All of the following are recognized as advantages of partnerships except: a. ease of formation b. possible tax advantages c. direct rewards d. lack of continuity

d. lack of continuity

Of the following pricing models, which is not indicative of pricing in the social media age? a. the subscription model b. the freemium model c. the affiliate model d. the growth stage model

d. the growth stage model

The textbook recommends that social media marketers consider three aspects of social media when using social media tools for marketing purposes. What are they? a. cost, complexity, and relevancy b. creating something of value, enabling customer promotion, and encouraging participation c. control, contribution, and distribution d. resource management, context, and content

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

The owner of a copyright may do all of the following except a. reproduce the work. b. deduct the intrinsic value of the rights from one's taxes. c. perform the work publicly. d. display the work publicly.

b. deduct the intrinsic value of the rights from one's taxes.

Specific forms of partnership include which of the following? a. limited partnerships b. limited partnerships and limited liability partnerships c. limited partnerships and S partnerships d. S partnerships and limited liability companies

b. limited partnerships and limited liability partnerships

To effectively pursue a patent violation, experts recommend that the entrepreneur a. handle all matters personally. b. prepare a realistic budget for infringement. c. fill out a preprinted form obtained from a patent office. d. sue as quickly as possible.

b. prepare a realistic budget for infringement.

Advantages of debt financing include all of the following except: a. low interest rates that justify the opportunity cost. b. regular interest payments. c. potential greater return on equity. d. no relinquishment of ownership.

b. regular interest payments.

What is penetration pricing? a. setting price to maximize profit b. setting price to maximize market share c. setting price to switch customers to new product lines d. setting price to match the competition

b. setting price to maximize market share

There are two parts to a patent application, claims and a. percentage. b. specification. c. value. d. integration.

b. specification.

Market segmentation is a. the process of categorizing products into different segments b. the process of identifying a specific set of characteristics that differentiate one group of consumers from the rest c. the process of segmenting the sales force d. heavily psychographic in nature

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

The registration of a trademark has a lifetime of a. 20 years plus 5-year renewable periods. b. 25 years. c. 10 years plus 10-year renewable periods. d. the lifetime of the owner.

c. 10 years plus 10-year renewable periods.

Which of the following falls under Chapter 7 bankruptcy? a. The debtor surrenders most property to a court trustee. b. The debtor fails to file income taxes. c. The debtor is relieved of obligations. d. The debtor is arrested.

c. The debtor is relieved of obligations.

Which of the following statements is not true of venture capitalists? a. They want the entrepreneur and the management to run the company. b. They expect high return on investments. c. They are interested in trying to manage firms themselves. d. They take a long time to raise venture capital.

c. They are interested in trying to manage firms themselves

Which of the following does not represent a category of angel investors? a. micromanagement angels b. entrepreneurial angels c. amateur angels d. corporate angels

c. amateur angels

The entrepreneur should ask the venture capitalist _____ questions. a. at most ten b. exactly twenty c. an unlimited number of d. no

c. an unlimited number of

The most common source of debt financing is a. trade credit. b. factoring. c. commercial banks. d. finance companies.

c. commercial banks.

Secondary data consists of a. internal data only. b. external data only. c. existing information. d. newly developed primary research.

c. existing information.

Of the following, which is not associated with entrepreneurial tactics in market research? a. guerrilla marketing b. lead user research c. in-person interviews d. blog monitoring

c. in-person interviews

The main objective of Regulation D is to a. increase investment in private placement. b. regulate new small-business investment. c. make it easier and less expensive for small ventures to sell stock. d. reduce debt financing by small enterprises.

c. make it easier and less expensive for small ventures to sell stock.

Of the following, which does the textbook identify as critical to the marketing planning process? a. market niche b. market segmentation c. marketing research d. marketing myopia

c. marketing research