Exam 3: Organizing and Financing a New Venture

If you are an inventor with a patent, the burden of enforcing the patent is yours.

In a corporate legal entity, the personal assets of the owners are separate from the business' assets, but the personal liabilities of the owners are not.

A work does not need to be registered to receive copyright protection; the work's creation is enough to provide copyright protection.

Patents are intellectual property rights granted for inventions that are:

A trademark must be novel in order to receive protection.

An idea is enough to be patented.

Professional corporations PCs) and service corporations SCs) are corporate structures that "states" provide for professionals such as physicians, dentists, lawyers, and accountants.

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.

"Design patents" cover most inventions pertaining to new products, services, and processes.

Limited liability companies LLCs) are owned by shareholders with limited liability and its earnings are taxed at the corporate rate.

The income received by a proprietorship is taxed at personal tax rates.

The maximum number of owners in a Subchapter S corporation is 150.

Which of the following are intellectual property rights to writings in written and electronically stored forms?

The highest marginal income tax rate for taxable personal income is 45 percent.

An S corporation provides unlimited liability for its shareholders.

Copyrights are intellectual property rights to writings in printed and electronically stored forms.

Intellectual property rights to "writings" in written and electronically-stored forms are protected by:

"Certification marks" provide indications of quality.

"Service marks" refer to services such as those provided by a sorority or a labor union.

The equity capital sources for a proprietorship are partners, families, and friends.