Entrepreneurship: Successfully Launching New Ventures, 6e (Barringer/Ireland)
Chapter 12 The Importance of Intellectual Property
1) The opening feature focuses on 3Derm Systems, a company that makes a device that takes 3D
images of the human skin. The central form of intellectual property that 3Derm is hoping to
benefit from is a(n) ________.
A) patent
B) Internet domain name
C) license
D) trademark
E) copyright
2) Which of the following is an example of intellectual property?
A) 3Derm System’s cash reserves
B) The computer that you use
C) Nike’s swoosh logo
D) United’s fleet of planes
E) Google’s headquarters in Mountain View, California
3) Which of the following is NOT an example of intellectual property?
A) Proactiv’s formula for acne medication
B) Apple’s trademark
C) Internet domain name www.dripcatch.com
D) Microsoft’s Windows operating system
E) A computer monitor
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4) Which of the following was NOT identified in the textbook as one of the common mistakes
that entrepreneurs make regarding intellectual property?
A) Not fully recognizing the value of their intellectual property
B) Not properly identifying all their intellectual property
C) Not properly registering their Internet domain names
D) Not using their intellectual property as part of their overall plan for success
E) Not taking sufficient steps to protect their intellectual property
5) There are two primary rules of thumb for deciding if intellectual property protection should be
pursued for a particular intellectual asset. First, a firm should determine if the intellectual
property has value in the marketplace. Second, a firm should determine if its intellectual property
________.
A) is directly related to its competitive advantage
B) could be licensed to another company
C) is more than three years old
D) is something that was developed “in-house”
E) rightfully belongs to the firm or the employees who developed it
6) Which of the following are the four key forms of intellectual property protection?
A) Patents, copyrights, trademarks, and trade secrets
B) Discoveries, covenants, trademarks, patents
C) Patents, official documents, copyrights, inventions
D) Discoveries, Internet domain names, innovations, trademarks
E) Convents, inventions, opportunities, and copyrights
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7) Which of the following is NOT one of the four key forms of intellectual property protection?
A) Innovations
B) Copyrights
C) Trademarks
D) Trade secrets
E) Patents
8) Intellectual property is any product of human intellect that is intangible but has value in the
marketplace.
9) Patents, trademarks, copyrights, and licenses are the four key forms of intellectual property.
10) What is intellectual property? Why is it called “intellectual” property? Why is intellectual
property such an important issue for entrepreneurial firms?
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11) What are the two primary rules of thumb for determining whether intellectual property
protection should be pursued for a particular intellectual asset?
12) A grant from the federal government conferring the rights to exclude others from making,
selling, or using an invention for a specific period of time is referred to as a(n) ________.
A) trademark
B) patent
C) idea secret
D) innovation
E) copyright
13) Which form of intellectual property protection is the only one expressly mentioned in the
original articles of the U.S. Constitution?
A) Assurances
B) Patents
C) Copyrights
D) Trade secrets
E) Trademarks
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14) The first patent, which was granted for a process of making potash, an ingredient in fertilizer,
was signed by ________.
A) John Adams
B) Thomas Jefferson
C) Abraham Lincoln
D) Theodore Roosevelt
E) George Washington
15) The sole entity responsible for granting patents in the United States is the ________.
A) U.S. Patent and Trademark Office
B) Federal Patent, Copyright and Trademark Office
C) Securities and Exchange Commission
D) U.S. Department of Patents
E) U.S. Treasury Department
16) Since the first patent was granted, there have been ________ patents granted in the United
States.
A) 526,000
B) 2.3 million
C) 4.6 million
D) 9.6 million
E) 12.2 million
17) Which of the following selections correctly identifies the three types of patents?
A) Manufacturing; process; plant
B) Usefulness; purpose; genetic
C) Explicit; implicit; plant
D) Utility; design; plant
E) Manufacturing; service; other
18) ________ patents are the most common type of patent and cover what we generally think of
as new inventions.
A) Value
B) Product
C) Method
D) Utility
E) Design
19) 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
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20) 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
21) The term of a utility patent is ________ years from the date ________.
A) 7; the patent is granted
B) 15; of the initial application
C) 15; the patent is granted
D) 20; of the initial application
E) 20; the patent is granted
22) ________ 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
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23) 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
24) 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
25) 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
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26) The Savvy Entrepreneurial Firm feature in Chapter 12 focuses 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
27) 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.
28) The average time for the approval of a patent is approximately seven months.
29) Since the first patent was granted in 1790, the USPTO has granted 9.6 million patents.
30) A utility patent can be obtained for a new product or process or the “idea” for a new product
or process.
31) Design patents are the most common type of patent and cover what we generally think of as
new inventions.
32) Identify and briefly describe the three types of patents.
33) 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
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34) 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
35) Which of the following is NOT a type of trademark?
A) Trademark
B) Certification mark
C) Documentation mark
D) Collective mark
E) Service mark
36) 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