MHR 322 COMPREHENSIVE EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔Identifying 10 high-potential customers (after your Persona) helps ensure that:
a. You have identified enough product features to convince any possible customer to
buy your product.
b. You have identified a scalable opportunity, not just a one-customer solution.
c. You will be able to convince a private investor to invest equity capital in your venture.
d. You will be able to reach break-even volume. - ✔✔b
✔✔One of the attractive features of a partnership business entity is that each partner is
liable only for his/her own decisions and actions.
T/F - ✔✔False
✔✔Which of the following is usually NOT a key factor in selecting the entity type for a
new company?
a. Management
b. Liability
c. Taxes
d. Industry - ✔✔Industry
✔✔A sole proprietorship does not require any new entity registration and the owner
simply reports the business income on their personal tax forms.
True
False - ✔✔True
✔✔One of the most important aspects of a partnership entity is that any of the general
partners can act on behalf of the organization without authorization from any of the
other partners.
True
False - ✔✔True
✔✔When one person starts a business without any formal structure or registrations, that
entity is a:
, a. LLC
b. Sole proprietorship
c. Partnership
d. Corporation - ✔✔b
✔✔Intellectual property refers to intangible personal property which may be protected
by various legal mechanisms.
True
False - ✔✔True
✔✔One of the major benefits of a c-corporation is that income is distributed directly to
the owners (pass-through) so that they only pay personal taxes on it.
True
False - ✔✔False
✔✔If a trademark has been used in commerce (e.g. a logo on a product or words on a
website that are linked to a product), then the trademark may be protected in the
geographic areas it has been used, even if the owner did not file for registration with
state or federal government.
True
False - ✔✔True
✔✔If two or more people start a business together, then unless they file a registration
as an alternate entity, the business is by default a partnership.
True
False - ✔✔True
✔✔There are several reasons why new ideas fail relative to expectations. Which one
was discussed in the 'Why Good Ideas Fail' talk?
a. Inability to get investors
b. Aversion to Loss
c. Technology doesn't work as promised
d. Supply chain disruptions - ✔✔b
✔✔The Endowment Effect is best defined as:
a. The ability of an entrepreneur to endow the market with an improved product or
service
b. The historical trend that in a capitalist society each generation is endowed with the
financial resources of the preceding generation.
c. The genetic endowment that causes people to seek change
d. The idea that people value an item higher when it is in their possession than not -
✔✔d
✔✔ The first goal for an innovation-driven entrepreneurial venture is to:
QUESTIONS SET A+
✔✔Identifying 10 high-potential customers (after your Persona) helps ensure that:
a. You have identified enough product features to convince any possible customer to
buy your product.
b. You have identified a scalable opportunity, not just a one-customer solution.
c. You will be able to convince a private investor to invest equity capital in your venture.
d. You will be able to reach break-even volume. - ✔✔b
✔✔One of the attractive features of a partnership business entity is that each partner is
liable only for his/her own decisions and actions.
T/F - ✔✔False
✔✔Which of the following is usually NOT a key factor in selecting the entity type for a
new company?
a. Management
b. Liability
c. Taxes
d. Industry - ✔✔Industry
✔✔A sole proprietorship does not require any new entity registration and the owner
simply reports the business income on their personal tax forms.
True
False - ✔✔True
✔✔One of the most important aspects of a partnership entity is that any of the general
partners can act on behalf of the organization without authorization from any of the
other partners.
True
False - ✔✔True
✔✔When one person starts a business without any formal structure or registrations, that
entity is a:
, a. LLC
b. Sole proprietorship
c. Partnership
d. Corporation - ✔✔b
✔✔Intellectual property refers to intangible personal property which may be protected
by various legal mechanisms.
True
False - ✔✔True
✔✔One of the major benefits of a c-corporation is that income is distributed directly to
the owners (pass-through) so that they only pay personal taxes on it.
True
False - ✔✔False
✔✔If a trademark has been used in commerce (e.g. a logo on a product or words on a
website that are linked to a product), then the trademark may be protected in the
geographic areas it has been used, even if the owner did not file for registration with
state or federal government.
True
False - ✔✔True
✔✔If two or more people start a business together, then unless they file a registration
as an alternate entity, the business is by default a partnership.
True
False - ✔✔True
✔✔There are several reasons why new ideas fail relative to expectations. Which one
was discussed in the 'Why Good Ideas Fail' talk?
a. Inability to get investors
b. Aversion to Loss
c. Technology doesn't work as promised
d. Supply chain disruptions - ✔✔b
✔✔The Endowment Effect is best defined as:
a. The ability of an entrepreneur to endow the market with an improved product or
service
b. The historical trend that in a capitalist society each generation is endowed with the
financial resources of the preceding generation.
c. The genetic endowment that causes people to seek change
d. The idea that people value an item higher when it is in their possession than not -
✔✔d
✔✔ The first goal for an innovation-driven entrepreneurial venture is to:
