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.
