ENTR 182 Ch 17 & 8 Quiz Studyguide

Which of the following statements is true regarding a trademark? Multiple Choice A trademark is not an exclusive right to its creator. A trademark once granted lasts for 25 years. A trademark can only be renewed every 5 years. A trademark can sometimes also function as a service mark.

A trademark can sometimes also function as a service mark.

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following is true regarding the components of a business plan? Multiple Choice: A mission statement is a slogan that captures the key idea of a business, its service, product, or customer. A vision statement is a paragraph that describes the firm's goals and competitive advantages. An elevator pitch is a simple tagline that expresses the fundamental idea or goal of a firm. An executive summary gives more detail about the business than the vision or mission statements or elevator pitch.

An executive summary gives more detail about the business than the vision or mission statements or elevator pitch.

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following statements is true of an executive summary? Multiple Choice: Executive summaries are typically put at the end of a business plan. An executive summary is written in an informal style for investors and lawyers. An executive summary is the single most widely distributed written description of a business. Executive summaries give fewer details about the business than an elevator pitch.

An executive summary is the single most widely distributed written description of a business.

Which of the following types of legal fee does the attorney take a percentage of recovery as his or her fee? contingency fee statutory fee flat fee hourly fee

contingency fee

A screening plan provides information on the company, product/service, market, and critical risks to prospective business. True False

False

Every business faces risks in the real world, so every business plan needs to spend some time addressing them. True False

False

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. ________ plans are designed to be used internally for management purposes. Multiple Choice: Invention Operational Key employee/partner Informational

Operational

Brendon wants to sue Fitness Ace, a leading provider of fitness equipments, for negligence. He approaches Arthur Bailey Group, a law firm, which has good experience in handling product liability claims for victims of exercise equipment failure. Which of the following would be true if the attorney charges Brendon in the form of contingency fees? Multiple Choice The attorney would take a percentage of Brendon's recovery as his or her fee. The attorney would charge separately for consultation and paperwork. The attorney would take monthly fee and additional fees if circumstances change. The attorney would charge Brendon on an hourly basis.

The attorney would take a percentage of Brendon's recovery as his or her fee.

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following statements concerning pitch decks is correct? Multiple Choice The contents of a solid pitch deck are very well known. A basic pitch deck consists of 30-44 slides outlining your pitch. Creating the pitch deck has changed very little, remaining the same for many years. A pitch deck is only for face-to-face presentations.

The contents of a solid pitch deck are very well known.

A securities disclaimer on the title page of a business plan is needed to comply with the Securities and Exchange Commission rulings. True False

True

If the business is a corporation or an LLC, the owner can only lose what he or she has invested in the business. True False

True

In a C corporation and S corporation, the IRS expects the owner to pay himself or herself a salary that is roughly at market rates. True False

True

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. A(n) ________ is an action-oriented description of a business designed to open the door to a more in-depth dialogue. mission statement executive summary elevator pitch vision statement

elevator pitch

In the lease agreement signed by Arthur Fraser, a(n) ________ clause exempts him from paying any restitution in case he causes accidental damage on the property. Which of the following types of contractual clauses protects Arthur Fraser from paying for such damages? noncompete power of sale hold harmless exculpatory

hold harmless

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. Which of the following is a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments? Multiple Choice key employee/partner plan invention plan private placement memorandum operational plan

private placement memorandum

Which among the following steps in a negotiation process is considered to be the most difficult? propose prepare pounce position

propose

A(n) ________ is a type of contract by which a new party agrees to perform a duty that one of the original parties to a contract was already legally obligated to perform. exculpatory agreement unilateral contract subcontract option contract

subcontract

Scenario: Connie's Corner Café Connie decides to open "Connie's Corner Café" and finds the ideal location for her venture. However, it appears that Connie will have to approach investors or bankers for financial backing. When she talks to her local bank manager, Mr. Johnson, he immediately asks for Connie's business plan. Connie is in trouble because she does not know what a business plan looks like. A good marketing strategy is most likely to focus on Multiple Choice: product/service description. the longer-term competitive plan. key activities and operations. value proposition.

the longer-term competitive plan.

A 20-year patent covering a process, machine, article of manufacture, composition of matter, or any new or useful improvement of an existing one is known as a Multiple Choice utility patent. plant patent. non-provisional patent. design patent.

utility patent.

Responsibility for the actions of another is referred to as direct liability. vicarious liability. exculpatory clause. limited liability.

vicarious liability.