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25) The form of protection offered under U.S. law to the authors of “original works of
authorship” is a(n) ________.
A) patent
B) electronic right
C) trademark
Learning Object.: 11.4 Evaluate ways to protect your intellectual property.
AACSB Category: Analytical thinking
26) What is used to identify and distinguish the source of a service rather than a product?
A) sales mark
B) trademark
C) service mark
D) intellectual property
Learning Object.: 11.4 Evaluate ways to protect your intellectual property.
AACSB Category: Analytical thinking
27) You do not need a patent unless you ________.
A) have invented a product that you intend to market yourself or sell to a manufacturer
B) believe that someone else could successfully sell the product by copying your invention
C) Both of the above.
D) None of the above.
Learning Object.: 11.4 Evaluate ways to protect your intellectual property.
AACSB Category: Reflective thinking
copying or appropriating the work.
Learning Object.: 11.4 Evaluate ways to protect your intellectual property.
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Copyright © 2016 Pearson Education, Inc.
29) Explain the difference between a copyright and a trademark and how each is useful.
Answer: A copyright is the form of legal protection offered to literary, musical, and artistic
works. The owner of a copyright has the sole right to print, reprint, sell and distribute, revise,
record and perform the work under copyright. The copyright protects a work for the life of the
author/artist plus seventy years.
A trademark, in contrast, protects a logo (short for logotype), which is an identifying symbol for
a product or business. A logo is printed on the business’s stationery, business cards, and flyers.
Once a logo has been registered with the United States Patent Office to protect it from being
used by others, it becomes a registered trademark. A company uses a trademark so that people
will recognize its product instantly, without having to read the company name, or even having to
think about it. Rights to a trademark are reserved exclusively for its owner. To infringe on a
trademark is illegal.
Learning Object.: 11.4 Evaluate ways to protect your intellectual property.
AACSB Category: Analytical thinking
30) You purchase $250,000 worth of insurance to protect your restaurant with a $10,000
deductible. How much money are you entitled to receive as a payout if a fire destroys your store
which is valued at $250,000?
A) $240,000
B) $10,000
C) $250,000
D) $240,000 less co-payment
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Application of knowledge
31) To protect against lawsuits brought by anyone injured by your product, you will need to buy
________.
A) liability insurance
B) business insurance
C) casualty insurance
D) an umbrella policy
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Analytical thinking
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32) ________ protects people from having property or wealth stolen, lost or destroyed. There are
many kinds and in order to purchase it you pay a monthly, quarterly or annual ________.
A) Insurance/carrying cost
B) Insurance/premium
C) Insurance/dividend
D) Insurance/maintenance fee
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Analytical thinking
33) A low deductible will yield a ________.
A) lower premium
B) higher coverage plan
C) has no impact on the premium
D) higher premium
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Analytical thinking
34) A ________ is the amount of loss or damage that you agree to cover before any insurance
coverage takes over.
A) deductible
B) carrying cost
C) premium
D) co-insurance
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Analytical thinking
35) ________ insurance compensates employees for loss of income and for medical expenses
due to job-related injuries.
A) Short-term disability
B) Disability
C) Injury
D) Worker’s compensation
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
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36) ________ insurance is designed to cover you in the event that a business (its employees) fails
to do something that causes harm to a customer.
A) Negligence
B) Errors and omissions
C) Product liability
D) Casualty
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
37) A(n) ________ is an official document that gives you the right to carry out a specific
activity, such as an outdoor festival.
A) license
B) certificate
C) permit
D) entitlement
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Analytical thinking
38) Federal, state and local ________ may apply to a business and may affect what it can do,
how it can do it, and when and where it can operate.
A) regulations
B) grants
C) taxes
D) zoning
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
39) Permits, licenses, or certificates may be required for your business. Local, county, and state
government offices, as well as chambers of commerce, are good places to contact for this
information.
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.
AACSB Category: Analytical thinking
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40) Explain the three types of insurance most states require business owners to carry.
Answer:
1) Worker’s compensation – compensates employees for loss of income and pays medical
3) If you have an automobile or truck that is owned or leased by the business, you must carry
commercial fleet insurance to cover your liability for personal injuries in an accident, damages to
any vehicle involved, and injuries to others.
Learning Object.: 11.5 Plan to protect your tangible assets and manage risk.