Entrepreneurship

By: Robert D. Hisrich, Michael P. Peters, Dean A Shepherd

MCQs For Chapter 6

1. A patent attorney hired as a specialist to help the entrepreneur obtain a patent would
most likely be hire on a:
A) retainer fee
B) success fee
C) out-of-pocket reimbursement
D) one-time free

2. A _________ is a contract between the government and an inventor.

A) franchise
B) patent
C) trademark
D) trade secret

3. Which of the following is a contract that grants the owner protection, based on the
appearance of an object?
A) Utility patent
B) Design patent
C) Plant patent
D) Disclosure document

4. The _____ patent is granted for a 14-year term.

A) utility
B) design
C) plant
D) procedure

5. The _______ program of the Patent and Trademark Office gives the inventor the
option of protecting an idea for which he or she does not want to obtain a patent, while
allowing the public access to the invention.
A) disclosure document program
B) defensive publication program
C) trademark
D) copyright

6. The _______ was established to facilitate patent filings in multiple countries.

A) General Agreement on Trades and Tariffs
B) Patent and Trademark Office
C) Patent Cooperation Treaty
D) Sarbanes-Oxley Act
7. The ________ is filed to establish a date of conception of an invention and includes a
description of the item.
A) disclosure document
B) defensive document
C) trademark
D) copyright

8. The section of the patent application which provides the criteria by which any
infringement will be determined is the:
A) background and advantages section.
B) description of the invention.
C) claims section.
D) executive summary.

9. The section of the patent application that includes engineering specifications,

materials and components is the:
A) background and advantage section.
B) description of invention.
C) claims section.
D) executive summary.

10. Priceline.com's service where a buyer can submit a price bid for a particular service
is an example of a:
A) utility patent.
B) design patent.
C) business method patent.
D) license.

11. The initial registration for a trademark lasts:

A) 20 years.
B) 17 years.
C) 14 years.
D) 10 years.

12. Which of the following statements is (are) not true?

A) A trademark may be a word, slogan, symbol, design or particular sound.
B) Unlike a patent, trademark does not last indefinitely.
C) It is possible to file for a trademark if you intend to use this mark in the future.
D) There are four categories of trademarks.

13. To apply for a trademark:

A) the mark must actually have been used on goods.
B) intent to use the mark is required.
C) the mark must be copyrighted.
D) the mark must have been used on goods that are already traded.
14. The category of trademarks that denotes no relationship between the mark and the
goods or services is called:
A) a coined trademark.
B) an arbitrary mark.
C) a suggestive mark.
D) a descriptive mark.

15. The name "Halo Shampoo" is an example of which kind of trademark?

A) A coined trademark
B) An arbitrary mark
C) A descriptive mark
D) A suggestive mark

16. Which government office is responsible for the federal registration of trademarks?
A) U.S. Trademark Services
B) Local Chambers of Commerce
C) Patent and Trademark Office
D) Internal Revenue Service

17. Authors or publishers of software are protected under:

A) copyrights.
B) trademarks.
C) utility patents.
D) trade secrets.

18. Copyrights are registered with:

A) the U.S. Justice Department.
B) the Internet Commission.
C) the Library of Congress.
D) the GATT .

19. Trade secrets are protected:

A) by the General Agreement on Tariffs and Trade.
B) by federal law.
C) by state law.
D) by the Library of Congress.

20. Licensing can be used by the entrepreneur to:

A) protect the Board of Directors from liability.
B) insulate management from liability.
C) protect confidentiality of a trade secret.
D) copy a competitor's patent.

21. The _______ created the commission that prescribes safety standards for products.
A) Consumer Product Safety Act
B) Patent Cooperation Treaty
C) Sarbanes-Oxley Act
D) U.S. Labor Department
22. The best protection against product liability is:
A) product warranty insurance.
B) to overstate the benefits of a product.
C) to produce safe products.
D) the utility patent.

23. Entrepreneurs should purchase insurance

A) before problems occur.
B) to prevent problems.
C) after problems occur.
D) only if they engage in international trade.

24. Claims regarding product liability usually fall under all of the following categories
except:
A) negligence.
B) misrepresentation.
C) warranty.
D) violation.

25. The courts consider oral agreements under $500 binding if:
A) the agreement is for less than one year.
B) the parties have previously done business together.
C) the transaction is for services rendered.
D) the new venture is incorporated.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
D B B B B C A C B C D B B A D

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C A C C D A C A D A