Question 1

A sole proprietor is subject to unlimited personal liability.

Accepted Answer

A) True 
 B)False  True

Question 2

A manager who owns a used car company sells a car to a person who is a minor. A contract is signed by the minor,the minor makes a down payment,and takes the car home. Later,the minor decides that he does not want the car and refuses to make any more payments. This contract is binding on the minor and he must make the payments.

Accepted Answer

A) True 
 B)False  False

Question 3

Janet Green was unsure of opening a Crowne Plaza Hotel as a franchise in Aurora,IL,because,in the past year,the town has grown immensely and she was afraid that competing franchisees would build hotels close to hers and that would saturate the market in a few years and reduce her business. However,the Crowne Plaza Corporation has assured her that no additional competing hotels will built within 20 miles of her location. This guarantee by a franchisor is known as

Accepted Answer

A)  Competition Royalty. 
B)  Territorial Protection. 
C)  Territorial Guarantee. 
D)  Competition Law of 1979. 
E)  None of the above. 
A)  Competition Royalty. 
B)  Territorial Protection. 
C)  Territorial Guarantee. 
D)  Competition Law of 1979. 
E)  None of the above. B

Question 4

A noncompete agreement is a contract that sets up a special type of franchise..

Accepted Answer

A) True 
 B)False

Question 5

A person wants to apply for a patent and is searching existing patents to see if there already is one like the new invention for which a patent is sought. The person is searching

Accepted Answer

A)  prior art. 
B)  claims patents. 
C)  reverse engineering practices. 
D)  invent around statutes. 
E)  inventory. 
A)  prior art. 
B)  claims patents. 
C)  reverse engineering practices. 
D)  invent around statutes. 
E)  inventory.

Question 6

Which of the following is a not a true statement concerning sole proprietorships?

Accepted Answer

A)  Sole Proprietorships are easy to start but almost impossible to terminate. 
B)  The entrepreneur is personally liable for all debts incurred by the business. 
C)  If the entrepreneur is no longer able to operate the business, it must be terminated unless someone else is willing to operate it. 
D)  Sole Proprietorships amount to about 75% of all the businesses in the United States. 
E)  All of the above are true. 
A)  Sole Proprietorships are easy to start but almost impossible to terminate. 
B)  The entrepreneur is personally liable for all debts incurred by the business. 
C)  If the entrepreneur is no longer able to operate the business, it must be terminated unless someone else is willing to operate it. 
D)  Sole Proprietorships amount to about 75% of all the businesses in the United States. 
E)  All of the above are true.

Question 7

When a corporation makes a profit,it must pay taxes on that amount. Then,when those profits are distributed to shareholders,each shareholder must again pay taxes on his or her individual amount. This process is called double taxation.

Accepted Answer

A) True 
 B)False

Question 8

A limited liability partnership (LLP)pays taxes as does a corporation.

Accepted Answer

A) True 
 B)False

Question 9

A legal right granted by a national government that allows an inventor to prevent others from using the same invention is known as a/an

Accepted Answer

A)  prior art. 
B)  one click invention. 
C)  invent around. 
D)  patent. 
E)  first move strategy. 
A)  prior art. 
B)  one click invention. 
C)  invent around. 
D)  patent. 
E)  first move strategy.

Question 10

Which of the following does not exist?

Accepted Answer

A)  Prior art. 
B)  International patent. 
C)  Sub Chapter S Corporation. 
D)  C Corporation. 
E)  Limited liability partnership. 
A)  Prior art. 
B)  International patent. 
C)  Sub Chapter S Corporation. 
D)  C Corporation. 
E)  Limited liability partnership.

Question 11

Define complementary assets and explain when and how they might help an entrepreneur protect intellectual property.

Accepted Answer

Complementary assets are those that must

Question 12

Which of the following statements is not true concerning a corporation:

Accepted Answer

A)  A corporation always has limited liability; the main advantage of a corporation. 
B)  Owners of the corporation and the company itself may be sued if business practices harm the environment. 
C)  Some are subject to double taxation. 
D)  Professional Corporations are subject to legal actions filed against them as individuals. 
E)  Corporations are legal entities apart from their owners that may engage in business, make contracts, own property, pay taxes, and sue and are sued by others. 
A)  A corporation always has limited liability; the main advantage of a corporation. 
B)  Owners of the corporation and the company itself may be sued if business practices harm the environment. 
C)  Some are subject to double taxation. 
D)  Professional Corporations are subject to legal actions filed against them as individuals. 
E)  Corporations are legal entities apart from their owners that may engage in business, make contracts, own property, pay taxes, and sue and are sued by others.

Question 13

Howard Johnson Hotels purchases approximately 100 pillows a day,making its annual purchase of pillows very large. Having such a large annual purchase,allows Howard Johnson Hotels to negotiate a low price per pillow. This is an example of Howard Johnson Hotels using its __________ to succeed.

Accepted Answer

A)  Standardized Products and Services. 
B)  Buying Power. 
C)  Financial Assistance. 
D)  Bargaining Power. 
E)  None of the above. 
A)  Standardized Products and Services. 
B)  Buying Power. 
C)  Financial Assistance. 
D)  Bargaining Power. 
E)  None of the above.

Question 14

Which of the following is an example of an industry in which there are franchises?

Accepted Answer

A)  Convenience Stores. 
B)  Furniture . 
C)  Hardware. 
D)  Car Dealerships. 
E)  All of the above. 
A)  Convenience Stores. 
B)  Furniture . 
C)  Hardware. 
D)  Car Dealerships. 
E)  All of the above.

Question 15

Say that you started a company with another person and each of you signed a buyback clause. If you leave this company,anyone in your family can legally buy the share of the company that you own.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast a sole proprietorship and a franchise.

Accepted Answer

A sole proprietorship refers to a busine

Question 17

Assume that one party to a contract does not complete her end of the agreement. The other person sues and is awarded money that is about equal to the damages sustained by the breach of contract. This money is known as

Accepted Answer

A)  punitive damages. 
B)  consideration. 
C)  compensatory damages. 
D)  breach damages. 
E)  standardized damages. 
A)  punitive damages. 
B)  consideration. 
C)  compensatory damages. 
D)  breach damages. 
E)  standardized damages.

Question 18

Assume that you own a business with a friend and you both signed an agreement that says if one of you should leave the company,the other person has the legal right to purchase the share of the company owned by the person leaving. This is known as a

Accepted Answer

A)  buyback clause. 
B)  nondisclosure clause. 
C)  noncompete clause. 
D)  unlimited personal liability clause. 
E)  uniform partnership clause. 
A)  buyback clause. 
B)  nondisclosure clause. 
C)  noncompete clause. 
D)  unlimited personal liability clause. 
E)  uniform partnership clause.

Question 19

Partnerships are a very popular way for people to own their own business without developing their own products and business model.

Accepted Answer

A) True 
 B)False

Question 20

Under what conditions might a first mover strategy help protect an entrepreneur's intellectual property? Explain how these conditions might favor the first mover.

Accepted Answer

Usually,a first move strategy will help

A sole proprietor is subject to unlimited personal liability.

A noncompete agreement is a contract that sets up a special type of franchise..

A person wants to apply for a patent and is searching existing patents to see if there already is one like the new invention for which a patent is sought. The person is searching

Which of the following is a not a true statement concerning sole proprietorships?

When a corporation makes a profit,it must pay taxes on that amount. Then,when those profits are distributed to shareholders,each shareholder must again pay taxes on his or her individual amount. This process is called double taxation.

A limited liability partnership (LLP)pays taxes as does a corporation.

A legal right granted by a national government that allows an inventor to prevent others from using the same invention is known as a/an

Which of the following does not exist?

Define complementary assets and explain when and how they might help an entrepreneur protect intellectual property.

Which of the following statements is not true concerning a corporation:

Howard Johnson Hotels purchases approximately 100 pillows a day,making its annual purchase of pillows very large. Having such a large annual purchase,allows Howard Johnson Hotels to negotiate a low price per pillow. This is an example of Howard Johnson Hotels using its __________ to succeed.

Which of the following is an example of an industry in which there are franchises?

Say that you started a company with another person and each of you signed a buyback clause. If you leave this company,anyone in your family can legally buy the share of the company that you own.

Compare and contrast a sole proprietorship and a franchise.

Assume that one party to a contract does not complete her end of the agreement. The other person sues and is awarded money that is about equal to the damages sustained by the breach of contract. This money is known as

Assume that you own a business with a friend and you both signed an agreement that says if one of you should leave the company,the other person has the legal right to purchase the share of the company owned by the person leaving. This is known as a

Partnerships are a very popular way for people to own their own business without developing their own products and business model.

Under what conditions might a first mover strategy help protect an entrepreneur's intellectual property? Explain how these conditions might favor the first mover.

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Writing An Effective Business Plan: Building A Road Map to Success

Marketing in a New Venture

Strategy: Planning For Competitive Advantage

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

Filters

Exam 8: Legal Issues Relating To New Ventures: Protecting Your Reputation, Your Assets, And Your Ideas

A sole proprietor is subject to unlimited personal liability.

A noncompete agreement is a contract that sets up a special type of franchise..

A person wants to apply for a patent and is searching existing patents to see if there already is one like the new invention for which a patent is sought. The person is searching

Which of the following is a not a true statement concerning sole proprietorships?

When a corporation makes a profit,it must pay taxes on that amount. Then,when those profits are distributed to shareholders,each shareholder must again pay taxes on his or her individual amount. This process is called double taxation.

A limited liability partnership (LLP)pays taxes as does a corporation.

A legal right granted by a national government that allows an inventor to prevent others from using the same invention is known as a/an

Which of the following does not exist?

Define complementary assets and explain when and how they might help an entrepreneur protect intellectual property.

Which of the following statements is not true concerning a corporation:

Howard Johnson Hotels purchases approximately 100 pillows a day,making its annual purchase of pillows very large. Having such a large annual purchase,allows Howard Johnson Hotels to negotiate a low price per pillow. This is an example of Howard Johnson Hotels using its __________ to succeed.

Which of the following is an example of an industry in which there are franchises?

Say that you started a company with another person and each of you signed a buyback clause. If you leave this company,anyone in your family can legally buy the share of the company that you own.

Compare and contrast a sole proprietorship and a franchise.

Assume that one party to a contract does not complete her end of the agreement. The other person sues and is awarded money that is about equal to the damages sustained by the breach of contract. This money is known as

Assume that you own a business with a friend and you both signed an agreement that says if one of you should leave the company,the other person has the legal right to purchase the share of the company owned by the person leaving. This is known as a

Partnerships are a very popular way for people to own their own business without developing their own products and business model.

Under what conditions might a first mover strategy help protect an entrepreneur's intellectual property? Explain how these conditions might favor the first mover.

Entrepreneurship:: A Field, an Activity - and a Way of Life

Entrepreneurial Opportunities: Their Origins, Forms, and Suitability For New Ventures

Cognitive Foundations of Entrepreneurship: Creativity and Opportunity Recognition

What Entrepreneurs Need to Know Before They Start: Acquiring and Interpreting Information About Markets Competitors and Government

Assembling the Team: Acquiring and Utilizing Essential Human Capital

Financial Resources For New Ventures: How To Get Them, How To Manage Them

Writing An Effective Business Plan: Building A Road Map to Success

Marketing in a New Venture

Strategy: Planning For Competitive Advantage

Preparing For And Attaining Growth: Strategies For Building Lasting Success

Managing New Ventures For Growth

Exit Strategies For Entrepreneurs: The Concluding Act

Filters