Final ch 12, Final Chapter 9, final Ch. 8, Ch 2, Chapter 11
Which of the following is not a question commonly asked by banks of entrepreneurs?
What interest rate did you have in mind?
At start-up time, forms of financing includes all but which of the following?
equitable payback
Which of the following would be most commonly used for medium-term financing?
finance companies
Which of the following is (are) sources of capital for entrepreneurs?
equity
When starting a business, which of the following sources of financing are least likely to be used?
insurance companies
Because the advantages of going public outweigh the disadvantages, it is in a corporation's best interest to go public.
False
Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, local professionals.
False
Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.
True
Venture capitalists are a valuable source of equity funding for new ventures.
True
Venture capitalists are slow to invest.
True
Which suggestions is to minimize legal costs?
Visit the lawyer during normal hours of operation
When securing a bank loan an entrepreneur should be prepared to answer which of the following questions except?
What is the price of your product?
Many new ventures find that debt financing is
necessary.
Which of the following would be most commonly used for long-term financing?
insurance companies
Which of the following is not a type of debt financing?
private placement
When going public with public offerings an advantage might be
size of the company's capital amount.
Which falls un chapter 7 bankruptcy?
The debtor is relieved of obligations
One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.
True
Private placement is a method of raising capital through the private placement of securities.
True
The average size of a social loan is around $7,000.
True
The business plan is a critical element in a new-venture proposal.
True
The most common sources of debt financing are commercial banks.
True
The most common source of debt financing is
commercial banks.
Which of the following is a type of equity financing?
common stock
The owner of a copyright may do all of the following except?
Deduct the intrinsic value of the rights from one's taxes
The process of trademark registration is?
Expensive
A person who loses an infringement battle in court may have to pay...
Extra legal fees
Because of the ___ doctrine, its sometimes difficult to establish infringement fair use.
Fair use
Specific forms of partnership include...
Limited partnerships and limited liability partnerships
SEC stands for the
Securities and Exchange Commission.
The text of a patent application is known as the?
Specification
There are 2 parts to a patent application, claims and?
Specification
NOT true about financial assumptions
They do not necessarily correlate with info from other parts of the business
Which of the following would be most commonly used for short-term financing?
trade credit
Social lending sites are different from so-called microlending sites.
True
Sources of debt financing include trade credit, accounts receivables, factoring, and finance companies.
True
The speculation section of a patent application should include all of the following...
A budget for handling infringement
Copyrights may be expressed in?
Books, periodicals, motion pictures
Entrepreneurs are rarely able to set up a business without investment funds or bank loans.
False
Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.
False
Public offering is a term used to refer to corporations taking public donations to raise capital.
False
The venture capital pool is rapidly declining due to overfunding.
False
There is no way for the venture capitalist adequately to evaluate a new venture.
False
There is only a small number of informal risk capitalists in the market today.
False
Venture capitalists need only basic summary information before they make funding decisions.
False
Venture capitalists, surprisingly, require little information before they make an investment.
False
Copyrights can be placed on all of the following except?
Ideas
To effectively pursue a patent violation, experts recommend that the entrepreneur...
Prepare a realistic budget for infringement
If an entrepreneur concludes that an innovation will withstand any legal challenge, a patent should be...
Pursued
Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.
True
When accounts receivable are bought from a company for capital funding it is called
factoring.
Short-term debt is
paid back in one year.
Advantages of debt financing include all of the following except:
regular interest payments.
When starting a business, which of the following sources of financing are most likely to be used?
trade credit
Which of the following is a way in which a trademark may be invalidated?
Cancellation proceeding
The emerging body of law governing cyberspace is often referred to as
Cyberlaw
Venture capitalists are quick to invest.
False
A disadvantage of debt financing is
regular interest payments.
A typical symptom of impending bankruptcy failure is when...
Other firms seem to be selling products that are a generation ahead
The registration of a trademark has a lifetime of?
10 years plus 10-year renewable periods
Design patent protection lasts for ___ years?
14 years
Which of the following is NOT a trademark?
A sales price, Generic words
What is true about sole proprietorships?
A sole proprietorship is a business that is owned and operated by 1 person
What % of issued patents is considered commercially valuable?
A very small %
According to the U.S. Patent Office, the process of obtaining a patent takes how many months?
About 24 months
Anyone who violates an author's exclusive rights under a copyright is liable for?
Infringement
Financial info is important to entrepreneurs because:
It pulls together all the info presented in other segments of the business and it qualifies all the assumptions concerning business operations
Defined the corporation as "an artificial being, invisible, intangible, and existing only in contemplation of the law"
Justice John Marshall
Approximately how many commercial banks are there in this country?
about 7,000
Long-term debt is used for
both a and b.
Where does S corporation take its name?
From subchapter S of the Internal Revenue Code
When a trademark becomes the name of a general group of products or services, the trademark protection may be lost because of
Generic meaning
A patent gives the holder a temporary?
Monopoly
A trademark is a distinctive ___ that is identified with a company's product.
Name
Which of the following is a useful rule used to avoid pitfalls in selecting a trademark?
Never choose a trademark without first conducting a trademark search
The determination of fair use of copyrighted material is based on...
The effect of use on potential market
A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.
True
Frugality is deemed a bootstrapping technique.
True
Patents that are not design patents have ___ years of protection?
20 years
Works created after Jan. 1,1978, have a copyright for the life of the author plus?
70 years
When considering bankruptcy, entrepreneurs as sole proprietors normally prefer...
Chapter 13
An infringement budget deals with...
Legal battles
That part of a patent application which identifies the features that are protected are known as the?
Claim
The 2 parts to a patent application are specification, and?
Claims
In the context of trademark invalidation, if a party seeks to prove that a trademark has not been used within 6 years of registration, it is known as?
Cleaning-out procedure
All of the following are ways of invalidating a trademark except?
Clearing-out proceedings
B corporations legal structure expands corporate accountability to encompass all of the following EXCEPT...
Comprehensive and transparent environmental standards
Legal protection is granted to computer programs in what form?
Copyright
How does death affect the duration of a corporation?
Corporation is unaffected by the death of a founding shareholder
Most venture capital funds later stages of venture development, not the start-up (or seed) stage.
False
Venture capital firms want to own control of the firms in which they invest.
False
Venture capitalists are usually satisfied with a reasonable return on investments.
False
What is an indicator that an entrepreneur's business is failing?
Liquidation
Which is not one of the major sections of the bankruptcy act?
Liquidation
Advantages of partnerships EXCEPT...
Possible tax advantages
History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.
True
For the author of creative material to obtain a copyright, the material must be in ____ form.
Tangible
In order to obtain a patent, an application should be filed with?
The Patent and Trademark Office of the Department of Commerce
Informal risk capitalists are often referred to as "business angels."
True
Informal risk capitalists are those who have already made their money and now seek to help new ventures.
True
