ENTR 460-Midterm Spr. '24
Exam Study Set
Characteristics one should consider when establishing a business organization
structure for the new venture include: - Answer investor liability
liquidity of ownership
tax consequences
A propiertorship is a business venture characterized by: - Answer unlimited liability
exposure for the proprietor
A general partnership is a business venture owned by two or more individuals
("partners") who are each personally liable for the venture's liabilities. - Answer True
A limited partnership is a business venture where ALL partners' liability for venture
obligation is limited to the amount paid for partnership interests. - Answer False
Except in legal situations where courts are able to "pierce the corporate veil",
shareholders have limited liability for the C corporation's obligations. - Answer True
Why do venture investors generally prefer to invest in a C corporation? - Answer Tax
simplicity and ease of selling the business
The most common type of non-corporate business entity that most entrepreneurs from
at the outset of a business to limit individual liability is: - Answer Limited Liability
Company(LLC)
Which entity types are taxed at the personal tax rate of its owners/shareholders? -
Answer S corporation
Sole proprietorship
Limited Liability Company
The four of intellectual property protection include: - Answer Patents
Trade secrets
Trademarks
Copyrights
The four types of patents include: - Answer Utility
Design
, Plant
Business Method
Patents are intellectual property rights granted for inventions that are useful, novel, and
nonobvious. - Answer True
With a patent: - Answer The inventor can sue over patent infringement violations, but the
inventor has the legal and financial obligation to enforce her patent
Utility patents cover most new inventions pertaining to new products, services, and
processes - Answer True
On June 8th, 1995, the life of a utility patent was changed to ___ years from the date of
the patent application. - Answer 20
Ownership of a trademark is acquired by being the first to use the mark on products. -
Answer True
Non-disclosure agreements are documents used to protect an idea or other froms of
intellectual property wehn disclosed to another to another individual or organization. -
Answer True
A non-compete clause within an employee contract requires employees to abstain from
directly competing with the firim only during employment with that firm. - Answer False
The generral definition of trademarks representsan umbrella encompassing four types
of marks including: - Answer Trademarks
Service Marks
Certification marks
Copyrights are intellectual property right to printed and/or electronically stored
"writings" - Answer True
An entrepreneur may start a number of different types of businesses including: - Answer
Salary replacement firms
Life style firms
Entrepreneurial ventures
Entrepreneurial ventures can typically grow at targeted (accelerated) rates wihtout
attracting external investments beyond the entrepreneur, her friends and family. -
Answer True
Slary replacement firms and life style firms may transition from business idea to
business plan more quickly than those entrepreneurial ventures requiring significant
external financing. - Answer True
Exam Study Set
Characteristics one should consider when establishing a business organization
structure for the new venture include: - Answer investor liability
liquidity of ownership
tax consequences
A propiertorship is a business venture characterized by: - Answer unlimited liability
exposure for the proprietor
A general partnership is a business venture owned by two or more individuals
("partners") who are each personally liable for the venture's liabilities. - Answer True
A limited partnership is a business venture where ALL partners' liability for venture
obligation is limited to the amount paid for partnership interests. - Answer False
Except in legal situations where courts are able to "pierce the corporate veil",
shareholders have limited liability for the C corporation's obligations. - Answer True
Why do venture investors generally prefer to invest in a C corporation? - Answer Tax
simplicity and ease of selling the business
The most common type of non-corporate business entity that most entrepreneurs from
at the outset of a business to limit individual liability is: - Answer Limited Liability
Company(LLC)
Which entity types are taxed at the personal tax rate of its owners/shareholders? -
Answer S corporation
Sole proprietorship
Limited Liability Company
The four of intellectual property protection include: - Answer Patents
Trade secrets
Trademarks
Copyrights
The four types of patents include: - Answer Utility
Design
, Plant
Business Method
Patents are intellectual property rights granted for inventions that are useful, novel, and
nonobvious. - Answer True
With a patent: - Answer The inventor can sue over patent infringement violations, but the
inventor has the legal and financial obligation to enforce her patent
Utility patents cover most new inventions pertaining to new products, services, and
processes - Answer True
On June 8th, 1995, the life of a utility patent was changed to ___ years from the date of
the patent application. - Answer 20
Ownership of a trademark is acquired by being the first to use the mark on products. -
Answer True
Non-disclosure agreements are documents used to protect an idea or other froms of
intellectual property wehn disclosed to another to another individual or organization. -
Answer True
A non-compete clause within an employee contract requires employees to abstain from
directly competing with the firim only during employment with that firm. - Answer False
The generral definition of trademarks representsan umbrella encompassing four types
of marks including: - Answer Trademarks
Service Marks
Certification marks
Copyrights are intellectual property right to printed and/or electronically stored
"writings" - Answer True
An entrepreneur may start a number of different types of businesses including: - Answer
Salary replacement firms
Life style firms
Entrepreneurial ventures
Entrepreneurial ventures can typically grow at targeted (accelerated) rates wihtout
attracting external investments beyond the entrepreneur, her friends and family. -
Answer True
Slary replacement firms and life style firms may transition from business idea to
business plan more quickly than those entrepreneurial ventures requiring significant
external financing. - Answer True
