Question 1

Pick two of the legal structures from the ones covered in the text and compare the advantages and disadvantages.

Accepted Answer

The answer of Pick two of the legal structures from...

Question 2

What step might be taken in the United States if some disclosure of your product is necessary in order to obtain funding,obtain raw materials,or otherwise develop the product?

Accepted Answer

A) Mark all prototypes and designs with the company name. 
B) File for a patent under your personal name instead of the company. 
C) File for a provisional patent. 
D) Change the nature of the product after you have disclosed it.

Question 3

A company must have an EIN before hiring employees.

Accepted Answer

A) True 
 B)False

Question 4

Every jurisdiction and industry requires a legal filing to set up a business as a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 5

Candy-Corp hires a summer intern to work in the candy shop during the summer.The intern works 20 hours a week and earns course credit for a course he is taking toward his culinary degree.He is learning a great deal,and at the same time,the company is benefiting from the intern because they did not need to schedule their regular employees full time and they are not paying the intern.What is the legal liability this company is incurring?

Accepted Answer

A) The summer intern is learning store operations that put him in physical danger. 
B) The intern is performing actual work and not just observing. 
C) The intern is benefiting the company by replacing duties which could be provided by paid employees. 
D) The intern is working too many hours.

Question 6

A C corporation's disadvantage is double taxation.This means that ______.

Accepted Answer

A) the corporation is taxed on the profit it makes and the shareholders are taxed on the dividends 
B) the corporation pays taxes in April and October 
C) corporations are taxed more heavily than other corporate structures 
D) corporations pay taxes on the goods they purchase to create the product rather than on the profits from the sale of the goods

Question 7

Describe the dangers of publicly disclosing your innovation before you have filed a patent application as well as the provisional measure you could take,as long as you're in the United States,that may provide you some protection.

Accepted Answer

The answer of Describe the dangers of publicly disclosing your...

Question 8

Fair use is a clearly defined area in U.S.law with absolute rules and boundaries.

Accepted Answer

A) True 
 B)False

Question 9

In a C corporation,who is legally liable for its actions?

Accepted Answer

A) the corporation 
B) the shareholders 
C) the owner(s)of the company 
D) the board of directors

Question 10

Why does the employer fill out an IRS form 940 every year?

Accepted Answer

A) to report income taxes withheld from employee wages 
B) to report federal unemployment tax 
C) to report the number of employees from their company who have filed for unemployment 
D) to report the number of employees who filed a workers' compensation claim

Question 11

Any word,name,symbol,or device used in business to identify and promote a product is called a ______.

Accepted Answer

A) trademark 
B) copyright 
C) brand 
D) patent

Question 12

In a sole proprietorship,you are personally responsible for problems such as injuries on the job or loans taken out on behalf of the business.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true when compensating employees with company equity?

Accepted Answer

A) The equity to be issued will be considered salary and not subject to securities laws. 
B) The equity will be considered a gift since no cash was issued. 
C) The shares may be considered a taxable item. 
D) The shares cannot be tied to performance of services.

Question 14

Even if an inventor makes significant improvements to another company's existing product (e.g.,changing the way the product is used and solving a problem with the original product),the improved product is still the intellectual property of the original company.

Accepted Answer

A) True 
 B)False

Question 15

How long does a patent generally last?

Accepted Answer

A) 2 years 
B) 10 years 
C) 20 years 
D) 50 years

Question 16

Which of the following is true about filing for a patent in the United States?

Accepted Answer

A) Patents are based on a "first to file" basis. 
B) Patents are based on a "first to invent" basis. 
C) Patents can be shared if multiple people invent the same product. 
D) Patents are awarded to the best design should multiple people file at the same time.

Question 17

What legal structure determines minimum wage and overtime pay?

Accepted Answer

A) Civil Liberties Act 
B) the hiring company's salary administration policy 
C) Fair Labor Standards Act 
D) Minimum Wage Act

Question 18

An employee has been developing a company product for the last 3 years when he decides to leave the company.That product is a glue that remains tacky for hours,enabling certain types of artwork to be performed.After he leaves the company,the employee joins another company and finalizes the glue development for his new company.Who is likely to own the rights of the intellectual property involved in the formulation of the glue?

Accepted Answer

A) the employee; he invented it 
B) the original company who paid for the product to be developed 
C) the new company because the product was released while the employee worked for it 
D) The glue cannot be considered intellectual property.

Question 19

How do the authors suggest the Internet's legal resources be used?

Accepted Answer

A) to access low-cost legal forms and advice 
B) to identify the type of legal counsel you will need 
C) to seek advice from free legal services 
D) to find sample documents that match your industry,products,and services

Question 20

What characteristic of a C corporation will make it possible to pass the corporation on to new owners after the original owners pass away?

Accepted Answer

A) vesting 
B) the laws of inheritance 
C) transferable ownership 
D) stockholder rights

Exam 14: Navigating Legal and Ip Issues

Pick two of the legal structures from the ones covered in the text and compare the advantages and disadvantages.

What step might be taken in the United States if some disclosure of your product is necessary in order to obtain funding,obtain raw materials,or otherwise develop the product?

A company must have an EIN before hiring employees.

Every jurisdiction and industry requires a legal filing to set up a business as a sole proprietorship.

A C corporation's disadvantage is double taxation.This means that ______.

Describe the dangers of publicly disclosing your innovation before you have filed a patent application as well as the provisional measure you could take,as long as you're in the United States,that may provide you some protection.

Fair use is a clearly defined area in U.S.law with absolute rules and boundaries.

In a C corporation,who is legally liable for its actions?

Why does the employer fill out an IRS form 940 every year?

Any word,name,symbol,or device used in business to identify and promote a product is called a ______.

In a sole proprietorship,you are personally responsible for problems such as injuries on the job or loans taken out on behalf of the business.

Which of the following is true when compensating employees with company equity?

Even if an inventor makes significant improvements to another company's existing product (e.g.,changing the way the product is used and solving a problem with the original product),the improved product is still the intellectual property of the original company.

How long does a patent generally last?

Which of the following is true about filing for a patent in the United States?

What legal structure determines minimum wage and overtime pay?

How do the authors suggest the Internet's legal resources be used?

What characteristic of a C corporation will make it possible to pass the corporation on to new owners after the original owners pass away?