MGT 100 Kiousis Exam 2 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Intellectual Property - CORRECT ANSWER - - Any intangible asset that consists of
human knowledge and ideas, encourages ingenuity
- Recorded on Balance Sheet if acquired
-Originated from Constitution and first filed in 1790
Paris Convention of 1883 - CORRECT ANSWER - Established a union for protection of
industrial property and the repression of unfair competition
Ideas (vs. Physical Products) - CORRECT ANSWER - - Need to share to evaluate
- Hard to price
- Raw idea can be appropriated
- Excludable and Embodied
Patents - CORRECT ANSWER - - Protects: inventions and innovations
- Against: Making, using, selling your product
- Requirements: novel, useful, non-obvious
- Term: 20 years
- Cost: High in money and time
Copyright - CORRECT ANSWER - - Protects: expression of ideas in a medium (not the
ideas)
- Against: Reproduction, copy distribution, or derivative work creation (not creation of similar
work)
- Requirements: original work, fixed in tangible form
- Term: Author's life + 70 years
, - Cost: Low, no registration
Trademark - CORRECT ANSWER - - Protects: a word, name, symbol, or device that
represents company
- Against: Others using the same mark
- Requirements: Must be unique to company
- Term: No limit (must renew every 10 years)
- Cost: Somewhat ($250-750 takes a long time)
- L'Oreal and Research + Tech Leaders in Application
Trade secret - CORRECT ANSWER - - Protects: concept, idea, info, or innovations
- Against: misappropriation
- Requirements: info not generally known or available; must make effort to keep secret
- Term: No limit
- Cost: Low, no registration
Pros of IP - CORRECT ANSWER - - Provides incentive to invest in innovation
- Market failure - need government intervention
- Grants limited monopoly (necessary evil)
- Allows IP owner tor regulate future use of product
Cons of IP - CORRECT ANSWER - - Hayek: destroys competition
- Grants monopoly
- Invention can occur w/o monetary incentive
- No government intervention needed
- Great innovation in sectors w/ imitation
(ex: Steam Engine patent delayed industrial revolution)
ACTUAL Exam Questions and CORRECT
Answers
Intellectual Property - CORRECT ANSWER - - Any intangible asset that consists of
human knowledge and ideas, encourages ingenuity
- Recorded on Balance Sheet if acquired
-Originated from Constitution and first filed in 1790
Paris Convention of 1883 - CORRECT ANSWER - Established a union for protection of
industrial property and the repression of unfair competition
Ideas (vs. Physical Products) - CORRECT ANSWER - - Need to share to evaluate
- Hard to price
- Raw idea can be appropriated
- Excludable and Embodied
Patents - CORRECT ANSWER - - Protects: inventions and innovations
- Against: Making, using, selling your product
- Requirements: novel, useful, non-obvious
- Term: 20 years
- Cost: High in money and time
Copyright - CORRECT ANSWER - - Protects: expression of ideas in a medium (not the
ideas)
- Against: Reproduction, copy distribution, or derivative work creation (not creation of similar
work)
- Requirements: original work, fixed in tangible form
- Term: Author's life + 70 years
, - Cost: Low, no registration
Trademark - CORRECT ANSWER - - Protects: a word, name, symbol, or device that
represents company
- Against: Others using the same mark
- Requirements: Must be unique to company
- Term: No limit (must renew every 10 years)
- Cost: Somewhat ($250-750 takes a long time)
- L'Oreal and Research + Tech Leaders in Application
Trade secret - CORRECT ANSWER - - Protects: concept, idea, info, or innovations
- Against: misappropriation
- Requirements: info not generally known or available; must make effort to keep secret
- Term: No limit
- Cost: Low, no registration
Pros of IP - CORRECT ANSWER - - Provides incentive to invest in innovation
- Market failure - need government intervention
- Grants limited monopoly (necessary evil)
- Allows IP owner tor regulate future use of product
Cons of IP - CORRECT ANSWER - - Hayek: destroys competition
- Grants monopoly
- Invention can occur w/o monetary incentive
- No government intervention needed
- Great innovation in sectors w/ imitation
(ex: Steam Engine patent delayed industrial revolution)
