BUS quiz

Directions: Please answer the following questions using complete sentences.  A minimum of one paragraph is required for each response.  Each paragraph must be five to seven sentences in length.

1. In your own words, what is a patent?  Of what value is a patent to an entrepreneur?  What benefits does it provide?

2. What are four basic rules entrepreneurs should remember about securing a patent?

3. In your own words, what is a copyright?  What benefits does a copyright provide?

4. What is the nature of an S corporation?  List five requirements for such a corporation.

5. How can an entrepreneur find out if the business is going bankrupt?  What are three early warning signs?

6. Explain the difference between Chapter 7 and Chapter 11 bankruptcy.  Why do many people prefer Chapter 11 to Chapter 7?

7. What are the benefits and drawbacks of equity and of debt financing?  Briefly discuss both.

8. Identify and describe three objectives of venture capitalists.

9. Identify and describe four of the most common criteria venture capitalists use to evaluate a proposal.

10. In a new-venture evaluation, what are the four stages through which a proposal typically goes?  Describe each in detail.