Q&A Hero

Q: London Simpson owns a company that makes smartphone accessories. She is trying to increase her sales, primarily because she knows that increasing production lowers the average cost of each unit produced. The reason for growth illustrated in this example is ________. A) economies of scope B) market leadership C) influence, power, and survivability D) need to accommodate the growth of key customers E) economies of scale

Q: Economies of scale occur when ________. A) increasing production lowers the average cost of each unit produced B) increasing production increases the average cost of each unit produced C) decreasing production lowers the average cost of each unit produced D) decreasing production increases the average cost of each unit E) increasing production increases the fixed cost of doing business

Q: ________ are(is) generated when increasing production lowers the average cost of each unit produced. A) Business scalability B) Economies of scale C) Reaching for scale D) Market leadership E) Economies of scope

Q: Which of the following is not an appropriate reason for firm growth? A) Increasing the compensation of the top managers of the firm B) Ability to attract and retain talented employees C) Need to accommodate the growth of key customers D) Market leadership E) Economies of scale

Q: Which of the following options was not identified in the textbook as an appropriate reason for growth? A) Need to accommodate the growth of key customers B) Influence, power, and survivability C) Economies of scale D) Market leadership E) Maintain the appearance that the firm is successful

Q: A firm's pace of growth is the rate it is growing ________. A) compared to industry norms B) compared to a national index of all firms C) on an annual basis D) compared to the national economy E) compared to its closest competitor

Q: According to Chapter 13, business success doesn't always scale. What is meant by this statement?

Q: Do most firms want to grow or are they reluctant to grow? What are the advantages of growth?

Q: A firm's core strategy is largely determined by its core competencies, or what it does particularly well.

Q: Business success doesn't always scale.

Q: All businesses have the potential to be aggressive growth firms.

Q: Most entrepreneurial firms are reluctant to try to grow.

Q: Sustained growth is defined as growth in both revenues and profits over an extended period of time.

Q: The Partnering for Success feature in Chapter 13 focuses on Threadless, the popular community-centered T-shirt design site. According to the feature, at one point during its early growth, Threadless almost collapsed under the weight of operational problems. Threadless solved the problem by ________. A) hiring professional managers B) replacing the founder CEO with a seasoned CEO from an established company C) hiring a consulting firm D) selling a minority interest to a venture capital firm, which provided Threadless operational assistance E) merging with Zappos and folding its operations into Zappos' operations

Q: Which of the following is not one of the 10 warning signs that a business is growing too fast? A) Borrowing money to pay for routine expenses B) Comfortable operating margins C) Customer complaints are up. D) Those working with the business's financial structure are starting to worry. E) E-mail and text messages start going unanswered.

Q: According to the textbook, there are three issues about business growth that entrepreneurs should appreciate. These issues are ________. A) not all businesses have the potential to be aggressive growth firms, business success scales, and business growth is a top priority of most entrepreneurial firms B) business growth is a top priority of most entrepreneurial firms, a business can't grow too fast, and businesses that price their products aggressively grow the fastest C) a business's valuation increases with its growth, a business can grow too fast, and business growth is a top priority of most entrepreneurial firms D) the majority of businesses have the potential to be aggressive growth firms, a business can't grow too fast, and business success scales E) not all businesses have the potential to be aggressive growth firms, a business can grow too fast, and business success doesn't always scale

Q: According to the textbook, the businesses that have the potential to grow the fastest over a sustained period of time are ones that ________. A) solve a significant problem or have a major impact on their customers' productivity or lives B) are cost leaders and promote themselves aggressively C) have a major impact on their customers' lives and sell high quality products D) take advantage of environmental trends and are cost leaders E) solve a significant problem or sell high quality products

Q: According to the textbook, the three important things that a business can do to prepare for growth are ________. A) plan for growth, adopt a growth-oriented business model, and stay committed to a core strategy B) appreciate the nature of business growth, stay committed to a core strategy, and plan for growth C) develop a viral marketing campaign, stay committed to a core strategy, and adopt a growth-oriented business model D) develop business partnerships, diversify beyond the company's core strategy, and appreciate the nature of business growth E) retain or hire one or more business growth consultants, diversify beyond the company's core strategy, and plan for growth

Q: According to the textbook, most entrepreneurial firms ________. A) are ambivalent about growth B) want to grow C) do not want to grow D) want to grow if the economy is strong but do not want to grow if the economy is weak E) want to grow if they are a service firm but do not want to grow if they are a manufacturing firm

Q: Which of the following statements regarding firm growth is incorrect? A) Most entrepreneurial firms want to grow. B) Growth in sales revenue is a poor indicator of an entrepreneurial firm's potential to survive today and be successful tomorrow. C) Firm growth is exciting. D) Many entrepreneurial firms have grown quickly, producing impressive results for their employees and owners. E) Growing a business successfully requires preparation, good management, and an appreciation of the issues involved.

Q: In regard to firm growth, evidence shows that ________. A) relatively few firms generate sustained growth B) the majority of firms generate sustained growth C) about 50 percent of firms generate sustained growth D) manufacturing firms tend to generate sustained growth while service firms do not E) service firms tend to generate sustained growth while manufacturing firms do not

Q: Jeremy Westbrook owns an organic food company which has increased both its profits and revenues over an extended period of time. Jeremy's firm is experiencing ________ growth. A) persistent B) unremitting C) sustained D) unbroken E) moderate

Q: Big Fish Presentations, the company profiled in the opening feature of Chapter 13, prepares presentations that help clients present themselves in new and innovative ways. In regard to growth, Big Fish Presentations has opted to ________. A) pursue a conservative and patient approach to growth based primarily on international expansion B) pursue a liberal and aggressive approach to growth based primarily on mergers and acquisitions C) pursue a conservative and patient approach to growth based primarily on strategic alliances and joint ventures D) pursue a liberal and aggressive approach to growth based primarily on expanding their product lines E) pursue a conservative and patient approach to growth based primarily on expanding their product lines

Q: An intellectual property audit is conducted to determine the intellectual property a company owns.

Q: There are two primary reasons to conduct an intellectual property audit. First, it is prudent for a company to periodically determine whether its intellectual property is being properly protected. The second reason for a company to conduct an intellectual property audit is to ________. A) remain prepared for a Security & Exchange Commission spot inspection B) remain prepared to justify its value in the event of a merger or acquisition C) remain prepared for an initial public offering D) update the value of its intellectual property on its balance sheet E) make sure no intellectual property has been stolen

Q: Consider the following questions: Are products under development that require patent protection? Are we in compliance with the copyright license agreements into which we have entered? Is anyone infringing on our trademarks? Are company trade secrets leaking out to competitors? These are the types of questions that would be asked when conducting a(n) ________. A) intangible material examination B) intellectual property inventory C) intangible material inspection D) patent, trademark, copyright, and trade secret review E) intellectual property audit

Q: An ________ is conducted to determine the intellectual property a company owns. A) intellectual property audit B) intangible materials audit C) academic property inventory D) intellectual materials inventory E) intangible property inventory

Q: Trade secret disputes arise most frequently when one firm alleges that a trade secret claimed by another firm is common knowledge, and can therefore be used by anyone.

Q: While stealing trade secrets is widely considered to be unethical, it is not a criminal offense.

Q: A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace.

Q: According to the textbook, trade secret disputes arise most frequently when ________. A) one firm alleges that it can legally use another firm's trade secrets because they were "voluntarily" disclosed B) an employee leaves a firm to join a competitor and is accused of taking confidential information with him or her C) one firm claims that another firm outright stole its trade secrets D) one firms claims that what another firm is claiming as a trade secret is common knowledge E) one firm claims that it obtained another firm's trade secrets through legal means

Q: The ________, which was drafted in 1979 by a special commission, attempted to set nationwide standards for trade secret legislation. A) Intangible Assets Protection Act B) Fairness in Intellectual Property Act C) Uniform Trade Secrets Act D) Trademark & Copyright Act E) Economic Espionage Act

Q: The federal Economic Espionage Act, passed in 1996, criminalizes ________. A) copyright infringement B) utility patent violations C) trademark violations D) design patent violations E) the theft of trade secrets

Q: Which of the following items would typically be protected by a form of intellectual property protection other than trade secret statutes? A) Financial forecast B) Product formula C) A company's logo D) Logs of sales calls E) Employee roster

Q: A ________ is any formula, pattern, physical device, idea, process, or other information that provides the owner of the information with a competitive advantage in the marketplace. A) patent B) copyright C) trademark D) trade secret E) certification mark

Q: A company's customer list is most commonly protected under ________ regulations. A) patent B) copyright C) trade secret D) trademark E) collective mark

Q: What is a copyright? What is protected by a copyright?

Q: Copyright infringement occurs when one work derives from another or is an exact copy.

Q: Pictorial, graphic, and sculptural works can be protected via copyrights.

Q: Computer software is not covered by copyright law.

Q: A trademark is a form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work.

Q: The What Went Wrong? feature in Chapter 12 focuses on a dispute between GoldieBlox, a toy company, and the Beastie Boys, a musical group. The dispute centered on GoldieBlox's use of a Beastie Boys song in a commercial without the Beastie Boy's permission. To justify their actions, GoldieBlox argued that their use of the song was justified based on the legal principle of ________ use. A) fair B) trivial C) limited D) inconsequential E) non-restricted

Q: Copyright ________ occurs when one work derives from another or is an exact copy or shows substantial similarity to the original work. A) infringement B) violation C) intrusion D) breach E) duplication

Q: The main exclusion from copyright laws is that copyright laws cannot protect ________. A) ideas B) dramatic works C) computer software D) musical compositions E) literary works

Q: According to current regulations, any copyrightable work created on or after January 1, 1978, is protected by copyright law for the life of the author plus ________ years. A) 28.5 B) 101 C) 40 D) 55 E) 70

Q: Which of the following symbols is the copyright bug?A) B) C) D) E)

Q: Copyright law protects any work of authorship ________. A) 90 days after it is approved by the U.S. Copyright Office B) one year after it assumes a tangible form C) the moment it assumes a tangible form D) as soon as it is approved by the U.S. Copyright Office E) 30 days after it assumes a tangible form

Q: If a local band wrote their own rendition of a Katy Perry song, the band could try to copyright their rendition of the song as a(n) ________ work. A) imitative B) offshoot C) derivative D) subsequent E) supplemental

Q: Copyright law is governed by the ________. A) U.S. Constitution B) 1946 Intellectual Property Act C) 1966 Trademark and Copyright Act D) 1955 Inventors and Writer's Protection Act E) Copyright Revision Act of 1976

Q: Which of the following statements about copyrights is incorrect? A) Businesses typically possess a treasure trove of copyrightable material. B) A musical composition that is written down is copyrightable. C) Copyrightable material may be in tangible or intangible form. D) The 1976 Copyright Act governs copyright law in the United States. E) A copyright is a form of intellectual property protection.

Q: A form of intellectual property protection that grants to the owner of a work of authorship the legal right to determine how the work is used and to obtain the economic benefits from the work is referred to as a(n) ________. A) assurance document B) patent C) trade secret D) brand E) copyright

Q: What is a trademark? Why are trademarks important?

Q: Marks that are merely descriptive of a product or service can be trademarked.

Q: Trademark law falls under the Lanham Act, which passed in 1946.

Q: Combinations of numbers and letters, such as 3M and 1-800-CONTACTS, can be trademarked.

Q: Certification marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product.

Q: A trademark is a word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those products or services from others.

Q: A trademark is registered with the ________. A) U.S. Commerce Department B) Federal Trade Commission C) Securities and Exchange Commission D) Federal Patent, Copyright, and Trademark Office E) U.S. Patent and Trademark Office

Q: Which of the following is not generally eligible for trademark protection? A) Trade dress B) Shapes C) Words D) Surnames E) Designs or logos

Q: The Partnering for Success feature in Chapter 12 starts by talking about Gary Schwartzberg, who, along with a partner, developed a new type of bagel dubbed the "Begeler," which was eventually licensed to Kraft. According to the feature, entrepreneurs and inventors like Gary Schwartzberg are finding that large consumer products companies are ________. A) ambivalent about what they have to offer B) increasingly interested in what they have to offer for new products, but are ambivalent about services C) increasingly interested in what they have to offer D) increasingly interested in what they have to offer for new services, but are ambivalent about products E) increasingly disinterested in what they have to offer

Q: ________ marks are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership in a union or similar organization. A) Collective B) Share C) Examination D) Joint E) Certification

Q: ________ marks are similar to ordinary trademarks, but they are used to identify the services or intangible activities of a business rather than a business's physical product. A) Creative B) Intangible C) Examination D) Service E) Subtle

Q: Dell for computers, Modcloth for vintage and vintage-inspired women's clothing, and Proactiv for acne medication are examples of ________. A) certifications B) copyrights C) patents D) trade secrets E) trademarks

Q: Which of the following is not a type of trademark? A) Trademark B) Certification mark C) Documentation mark D) Collective mark E) Service mark

Q: The four types of trademarks are ________. A) trademarks, service marks, collective marks, and certification marks B) examination marks, trademarks, combined marks, and service marks C) shared marks, collective marks, mutual marks, and trademarks D) service marks, cooperative marks, trademarks, and shared marks E) trademarks, collective marks, documentation marks, and combined marks

Q: A ________ is any word, name, symbol, or device used to identify the source of origin of products or services and to distinguish those products or services from others. A) copyright B) trademark C) license D) trade secret E) patent

Q: Identify and briefly describe the three types of patents.

Q: Design patents are the most common type of patent and cover what we generally think of as new inventions.

Q: A utility patent can be obtained for a new product or process or the "idea" for a new product or process.

Q: Since the first patent was granted in 1790, the USPTO has granted 8.7 million patents.

Q: The average time for the approval of a patent is approximately seven months.

Q: A patent is a grant from the federal government conferring the rights to exclude others from making, selling, or using an invention for the term of the trademark.

Q: The Savvy Entrepreneurial Firm feature in Chapter 12 focused on provisional patent applications. The main point of the feature is to illustrate that filing a provisional patent application effectively takes ________. A) substantial financial resources B) a substantial commitment of time and effort C) very little effort D) some finesse E) substantial expertise

Q: Patent ________ takes place when one party engages in the unauthorized use of another party's patent. A) breach B) encroachment C) violation D) infraction E) infringement

Q: In terms of priority in filing a patent application, the United States uses a first-to- ________ system. A) file B) invent C) manufacture D) sell E) validate

Q: A utility patent is good for ________ years from the date of the original application, a design patent is good for ________ years from the date the patent is granted, and a plant patent is good for ________ years from the date of the original application. A) 14; 14; 20 B) 20; 20; 14 C) 20; 20; 20 D) 20; 14; 20 E) 14; 20; 14

Q: ________ patents are the second most common type of patent and cover the invention of new, original, and ornamental designs for manufactured products. A) Aesthetic B) Utility C) Visual D) Blueprint E) Design

Q: The term of a utility patent is ________ years from the date of the ________. A) 7; patent is granted B) 15; initial application C) 15; patent is granted D) 20; initial application E) 20; patent is granted

Q: There are three basic requirements for a patent to be granted. The subject of the patent application must be ________. A) useful, difficult to copy, and novel in relation to prior arts in the field B) based on cutting edge science or technology, not obvious to a person of ordinary skill in the field, and rare C) useful, novel in relation to prior arts in the field, and not obvious to a person of ordinary skill in the field D) rare, difficult to copy, and not obvious to a person of ordinary skill in the field E) useful, scientific, and novel in relation to prior arts in the field

Q: Amazon.com's one-click ordering system and Priceline.com's "name-your-price" business model are examples of ________ patents. A) copyright extension B) utility C) business technique D) trademark extension E) business method