Entrepreneurship Test 4
Dave is a general partner in Eagle Investments, a limited partnership, Dave pays personal income taxes on
His share of the firm's income
A limited liability company does not offer the limited liability like a C corporation.
False
A trademark provides the owner with the exclusive rights to hold, transfer, and license the production and sale of a product or process.
False
Generally, anything that makes an individual company unique and has value to a competitor could be a trade secret.
True
Mike, Nora, and Owen want to form a limited partnership. A limited partnership must have a least
one general partner and one limited partner
Because of the fair use doctrine, when designing a website or social media page for a new business, an entrepreneur use any content, pictures, music,etc. found on the internet and not worry about violating anyone's copyright interest
False
In a limited partnership, the liability of each partner is limited to the amount of capital he or she has invested in the partnership.
False
Obtaining a business license is the same as forming a legal entity for a business.
False
The term opportunity pressure describes an ethical lapse that occurs when competition is so intense that a company's survival is threatened and a manager begins to view what once was an unacceptable option as acceptable.
False
Typically, an entrepreneur is not faced with any ethical decisions, especially during the early stages of their new venture
False
Works created and copyrighted after January 1, 1978, are protected for an unlimited duration .
False
A limited liability company formed and charted in Virginia is considered a foreign corporation when doing business in Maryland.
True
A restrictive covenant is a clause in a contract which prohibits an employee from competing with his ex-employer for a certain period or within a certain geographic area after the employee has left the business.
True
Ethics represents a set of principles prescribing a behavioral code that explains what is good and right or bad and wrong; ethics may, in addition, outline moral duty and obligations.
True
Globalization of business has intertwined what once were distinct cultures; companies have discovered that there is no single standard of ethical behavior applying to all business decisions in the international arena.
True
If the partners fail to create an agreement, the UPA(Uniform Partnership Agreement) says that the partners share equality in the partnerships profits, even if their original capital contributors are unequal
True
It is wise for an entrepreneur when selecting a business name to search the internet, state corporations commission, and the United States Patent and trademark office to determine its availability
True
The utilitarian principle evaluates ethical behavior based on choosing the option that offers the greatest good for the greatest number of people.
True
Unlike a limited partnership, which prohibits limited partners from participating in the day to day management of the business, an LLC does not restrict its members ability to become involved in managing the company.
True
When a "bad barrel" ethical lapse occurs, the company culture has been poisoned with an unethical overtone and unethical behavior is rewarded.
True
Anyone who violates an author's exclusive rights under a copyright is liable for infringement. However, because of this doctrine, it is sometimes difficult to establish infringement
fair use
The corporation, like the proprietorship, avoids the "double taxation" disadvantages associated with the partnership form of ownership.
false
The sole proprietorship is the simplest, least expensive form of ownership to begin and the owner and the business are entirely separate
false
A form of partnership that includes at least one general partner who is liable for all its liabilities and at least one partner who is liable for the capital invested in the partnership is
limited partnership
Which of the following is not true about the protection of intellectual property under a trade secret theory
must register trade secret with federal agency
The most common form of business ownership is the
proprietorship
Carlos founded the "Taco Factory" 20 years ago as a family -oriented restaurant business.Over the years as he grew the business, he incorporated and sold stock. Recently the stockholders voted to seek liquor licenses and sell beer and hard liquor in the restaurants. Carlos opposed this, citing the history of the restaurant's family environment, but was voted down. Carlos experienced which of drawback of the corporate form of ownership?
the potential loss of control
Drs. Kay and Lyle are partners in a mental clinic, which is organized as a limited liability partnership. A court holds lyle liable in a malpractice suit. Kay is liable
to the extent of her capital contribution
Ann owns Beta Enterprises, a sole proprietorship. Ann's liability for the obligations of the business is
unlimited
There are three basic requirements for a patent to be granted. the subject of the patent application must be:
useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field