True and False Questions

1. Entrepreneurs, because of their lack of understanding of intellectual property, ignore important steps that they should have taken to protect these assets. TRUE/FALSE

2. A lawyer may work on a retainer basis by which he or she provides office and consulting time, which includes court time and other legal fees related to the action. TRUE/FALSE

3. When resources are limited, the entrepreneur can offer a lawyer stock in exchange for legal services. TRUE/FALSE

4. A patent is a contract between the government and an inventor. TRUE/FALSE

5. A design patent has a term of 14-years, beginning on the date of filing with the Patent and Trademark Office (PTO). TRUE/FALSE

6. Planning the new venture is a process that never ends. TRUE/FALSE

7. The business plan addresses only short term decision making. TRUE/FALSE

8. To maintain objectivity, the business plan should not be written by the entrepreneur.TRUE/FALSE

9. Before writing the business plan an entrepreneur should conduct an objective selfassessment of his or her abilities which includes areas such as planning and sales skills.TRUE/FALSE

10. In writing the business plan an entrepreneur should consider four perspectives: the investor, the customer, the employees and themselves. TRUE/FALSE

11. When preparing the industry analysis section of the business plan, using secondary sources is not appropriate. TRUE/FALSE

12. The first step in conducting a competitive analysis is to document the pricing strategy of each competitor. TRUE/FALSE

13. Marketing research involves the gathering of information in order to determine who will buy the product and what the most effective promotion strategy would be. TRUE/FALSE

14. An effective way to begin defining the purpose of a marketing plan, is to make a list of all the information needed to prepare the marketing plan. TRUE/FALSE

15. Marketing information that already exists is called secondary data. TRUE/FALSE

16. Investors usually insist that the management team not operate the business as a parttime venture. TRUE/FALSE

17. Investors accept that the management team draws a large salary for their contributions in early operations. TRUE/FALSE

18. The proprietor is only personally liable for all aspects of the business when gross negligence occurs. TRUE/FALSE

19. The corporation is considered a legal person that is taxable and absorbs liability. TRUE/FALSE

20. In a limited partnership, the limited partners are equally liable for the debts of the partnership. TRUE/FALSE