Q&A Hero

Q: Certification marks cover memberships in groups (e.g., a sorority or a labor union). a. True b. False

Q: A work does not need to be registered to receive copyright protection; the work's creation is enough to provide copyright protection. a. True b. False

Q: If you are an inventor with a patent, the burden of enforcing the patent is yours. a. True b. False

Q: There are four kinds of patents. a. True b. False

Q: Certification marks are intellectual property rights in the form of inventions and information (e.g., formulas, processes, customer lists, etc.) not generally known to others. a. True b. False

Q: Partnerships are treated with pass-through taxation. This means that profits and losses of the business pass directly through to investors on the basis specified in the partnership agreement. a. True b. False

Q: The highest federal marginal income tax rate for personal taxable income is 40 percent. a. True b. False

Q: Intellectual property refers to a venture's intangible assets and human capital. a. True b. False

Q: Certification marks provide indications of quality. a. True b. False

Q: Trademarks are intellectual property rights that allow firms to differentiate their products and services through the use of unique marks. a. True b. False

Q: An employment contract is an agreement between an employer and employee about the terms and conditions of employment, including the employee's agreement to keep confidential information secret and to assign ideas and inventions to the employer. a. True b. False

Q: Patents, trade secrets, trademarks, and copyrights are intangible assets. a. True b. False

Q: Most trademarks take the form of names, words, or graphic designs. a. True b. False

Q: An S corporation provides unlimited liability for its shareholders. a. True b. False

Q: The difference between a limited partnership and a general partnership is that a limited partnership has partners who actively manage the day-to-day operations but also has passive investors. a. True b. False

Q: The articles of incorporation are the basic legal declarations contained in the corporate charter. a. True b. False

Q: The type of financing available at a venture's survival stage in its life cycle is first-round financing. a. True b. False

Q: Confidential disclosure agreements are used to protect intellectual property when disclosure must be made to an outside individual or organization. a. True b. False

Q: An income tax law passed in 2017 provided for a 21% flat corporate income tax rate beginning in 2018. a. True b. False

Q: A limited partnership limits certain partners' liabilities to pay the venture's obligations to the amount each paid for their partnership interests. a. True b. False

Q: The maximum number of owners in a subchapter S corporation is 150. a. True b. False

Q: Business method patents protect a specific way of doing business and the underlying computer codes, programs, and technology. a. True b. False

Q: Limited liability in the corporate business structure means creditors can seize only some of the corporation's assets. a. True b. False

Q: Business angels are wealthy individuals who invest in early-stage ventures in exchange for the excitement of launching the business, as well as a share of the firm's financial gains. a. True b. False

Q: The equity capital sources for a proprietorship are partners, families, and friends. a. True b. False

Q: Design patents cover most inventions pertaining to new products, services, and processes. a. True b. False

Q: In a corporate legal entity, the personal assets of the owners are separate from the assets of the business. a. True b. False

Q: The marginal tax rate for the first dollar of personal taxable income is higher for "single filers" relative to "married, filing jointly." a. True b. False

Q: A color mark is considered to be one of four types of marks used to try to protect intellectual property. a. True b. False

Q: Based on the 2018 tax laws, the tax rate for corporations is less than the highest marginal tax rate for individuals. a. True b. False

Q: Patents are intellectual property rights granted for inventions that are useful, novel, and obvious. a. True b. False

Q: Nondisclosure agreements prohibit the creator of an idea or other form of intellectual property from sharing it with others once it has been presented the first time. a. True b. False

Q: The income received by a proprietorship is taxed at personal tax rates. a. True b. False

Q: A basic C corporation is also known as an S corporation. a. True b. False

Q: A limited liability company (LLC) is owned by shareholders with limited liability, and its earnings are taxed at the corporate rate. a. True b. False

Q: A trademark must be novel in order to receive protection. a. True b. False

Q: Beginning in 2018, the income tax laws provided for a flat personal income tax rate. a. True b. False

Q: An idea is enough to be patented. a. True b. False

Q: Trade secrets are intellectual property rights in the form of inventions and information not generally known to others that convey economic advantages to the holders. a. True b. False

Q: There are four types of marks that can be used to try to protect intellectual property. a. True b. False

Q: Collective marks cover memberships in groups (e.g., a sorority or a labor union). a. True b. False

Q: Service marks refer to services such as those provided by a sorority or a labor union. a. True b. False

Q: Indicate whether the statement is true or false.Financial bootstrapping maximizes the need for financial capital.a. Trueb. False

Q: Determine the dollar amount of revenues for a venture with the following financial information: net profit = $60,000; assets turnover = 1.5 times; and return on assets 30%. a. $300,000 b. $500,000 c. $800,000 d. $1,200,000

Q: Free cash flow to equity of an entrepreneurial firm includes cash flows to: a. venture investors b. creditors c. the entrepreneur d. venture investors and the entrepreneur

Q: A firm's option to abandon a venture is an example of a: a. bootstrapping option b. financial option c. survival option d. real option

Q: Determine the net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.0 times. a. $10,000 b. $25,000 c. $50,000 d. $60,000

Q: In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except: a. the proposed product or service opportunity b. the accounting data for the last five years c. current resources available to the venture d. financial projections

Q: U.S. small businesses are predominately: a. salary-replacement or entrepreneurial firms b. lifestyle or entrepreneurial firms c. entrepreneurial ventures d. salary-replacement or lifestyle firms

Q: When composing the financial plans and projections section of a business plan, all of the following should be included except: a. income statements and balance sheets b. statements of cash flows c. past and present dividends per share information d. funding needs and sources

Q: Venture capitalists invest in approximately what percent of business plans presented to them? a. 1%3% b. 10%13% c. 20%23% d. 30%33%

Q: A typical business plan includes all of the following sections except: a. management team b. financial plans and projections c. risk and opportunities d. initial public offering information

Q: When conducting a SWOT analysis, which of the following areas would not be considered as a potential opportunity or threat? a. existing competition b. reputation value c. possibility of new technologies d. recent or potential regulatory changes

Q: The first two requirements of a sound business model are: a. generate revenues and make profits b. make profits and produce free cash flows c. produce free cash flows for creditors and owners of the venture d. generate revenues and produce free cash flows

Q: The return on assets (ROA) model measures: a. revenues divided by net profit multiplied by the asset turnover b. net profit margin multiplied by the equity multiplier c. net profit margin multiplied by the asset turnover d. net profit divided by total assets multiplied by the asset turnover

Q: A score in the range of 2.343.00 using the VOS Indicator would be considered a(n): a. low score b. average score c. high score d. very high score

Q: An average score using the VOS Indicator would fall in the range: a. 0.000.99 b. 1.001.66 c. 1.672.33 d. 2.343.00

Q: Free cash flow to equity is the cash available to the entrepreneur and venture investors after all of the following except: a. net cash flows b. net increases in debt capital c. financing and tax cash flows d. investment in assets needed to sustain the venture's growth

Q: A sound business model includes a plan to: a. generate revenues and make profits b. make profits and produce free cash flows c. produce free cash flows for the owners of the venture d. generate revenues, make profits, and produce free cash flows

Q: A venture's value is determined by its: a. future free cash flows (to equity) b. revenues c. profits d. assets

Q: A well-designed entrepreneurial venture typically includes: a. generating ideas b. analyzing the feasibility of ideas c. producing a business plan d. generating ideas, analyzing the feasibility of ideas, and producing a business plan

Q: In a study of high-growth, high-performance firms by the Kauffman Center for Entrepreneurial Leadership of best practices, which of the following practices was not included? a. marketing practices b. financial practices c. management practices d. production/operations practices

Q: When conducting a SWOT analysis, assessing unfilled customer needs is examined in terms of: a. strengths or weaknesses b. weaknesses or threats c. opportunities or threats d. threats or strengths

Q: A SWOT analysis focuses on which of the following components or areas? a. strengths and weaknesses b. weaknesses and opportunities c. strengths, opportunities, and threats d. threats, opportunities, weaknesses, and strengths

Q: The process involving minimizing the need for financial capital and finding unique sources for financing a new venture is referred to as: a. mezzanine financing b. financial bootstrapping c. seed financing d. startup financing

Q: The definition of an entrepreneurial firm is: a. survival b. high growth c. high growth and high performance d. survival and average performance

Q: When moving from entrepreneurial opportunities to new businesses, products, or services, which of the following is not considered a component? a. ideas b. feasibility c. business plan d. harvest of venture

Q: Return on assets can be stated as: a. net after-tax profit divided by total assets b. total assets divided by net after-tax profit c. total assets divided by revenues d. revenues divided by total assets

Q: Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.0 times. a. $100,000 b. $250,000 c. $375,000 d. $500,000

Q: Developing new and delivering high-quality products or services that command higher prices and margins best describes strong: a. marketing practices b. financial practices c. operating practices d. management practices

Q: Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%; and gross profit margin = 70% a. $40,000 b. $35,000 c. $15,000 d. $10,000

Q: The direct costs of producing a product or providing a service is called: a. gross profit b. gross profit margin c. net profit margin d. cost of goods sold

Q: If the asset intensity is 0.80, the asset turnover would be: a. 0.80 times b. 1.00 times c. 1.25 times d. 1.50 times

Q: A SWOT analysis does not focus on which of the following components or areas? a. strengths b. weaknesses c. new ideas d. opportunities

Q: Asset intensity is: a. total assets divided by total revenues b. total revenues divided by total assets c. calculated the same as asset turnover d. one-half of the asset turnover

Q: Which of the following assessment categories is not used at the end of a qualitative-based venture opportunity screening exercise? a. natural commercial potential b. high commercial potential c. average commercial potential d. low commercial potential

Q: All else held constant, a higher asset turnover: a. increases ROA b. decreases ROA c. has no effect on ROA d. may raise or lower ROA, depending on how it affects revenues.

Q: An effective entrepreneurial management team should do all of the following except: a. provide expertise in the areas of marketing, finance, and operations b. have successful experience in the venture's industry and markets c. always work independently of each other d. share the entrepreneurial spirit

Q: The dollar profit left after all expenses, including financing costs and taxes, have been deducted from the firm's revenues is called: a. gross profit b. gross profit margin c. net profit d. net profit margin

Q: A sound business model provides a plan to do all of the following except: a. generate revenues b. make profits c. retain all its earnings d. produce free cash flows