EN_2.2 Entrepreneurship Test

True/False
Indicate whether the statement is true or false.

____	1.	The Equal Pay Act of 1963 declares that all races should be paid the same wage for the same work.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____	2.	Something that has total control over a products and its means of production is a:
a.	market supply 	c.	monopoly 	
b.	mental ownership	d.	market segment	

____	3.	A word, symbol, design, or combination of these that a business uses to identify itself or something it sells
a.	logo	c.	graftmark	
b.	brand	d.	trademark	

____	4.	Which of the following tax does NOT have to be paid by a business
a.	FICA	c.	income	
b.	sales	d.	payroll	

____	5.	The Federal Unemployment Tax covers people who 
a.	are on maternity leave	c.	have been fired	
b.	are temporarily unemployed	d.	are related to employees	

____	6.	Under patent and trademark rules, which is an example of a class that an invention must fit under? 
a.	a composition	c.	something obvious that has no use in society	
b.	a previous work of art	d.	a historical letter	

____	7.	Which categories of law must you be aware of when starting a business?
a.	location, civil, religious	c.	criminal, corporate, constitutional	
b.	coporate, location, civil	d.	permits and licenses, contracts, choosing a location	

____	8.	Which of the following professions does NOT require a license to operate:
a.	doctor	c.	hardware salesman	
b.	hair stylist	d.	AKC dog breeder	

Matching

a.	patent law	
b.	trademark issue	
c.	copyright	
d.	trade secrets	

____	9.	protects recipes

____	10.	protects an invention

____	11.	protects books

____	12.	protects logos

Short Answer

	13.	Describe free enterprise.

	14.	What branch of law deals with how ideas are protected?	

	15.	What does it mean when a lawyer tells you that the status of your invention is “patent pending?”

	16.	List three types of false or misleading advertisements and explain why businesses should watch out for them.

EN_2.2 Entrepreneurship Test
Answer Section

TRUE/FALSE

	1.	ANS:	F
men and women should be paid ...

PTS:	2

MULTIPLE CHOICE

	2.	ANS:	C	PTS:	3

	3.	ANS:	D	PTS:	3

	4.	ANS:	C	PTS:	3

	5.	ANS:	B	PTS:	3

	6.	ANS:	A	PTS:	3

	7.	ANS:	D	PTS:	3

	8.	ANS:	C	PTS:	3

MATCHING

	9.	ANS:	D	PTS:	2

	10.	ANS:	A	PTS:	2

	11.	ANS:	C	PTS:	2

	12.	ANS:	B	PTS:	2

SHORT ANSWER

	13.	ANS:	

Free enterprise encourages individuals to start and operate their own business with limited government involvement.  
It allows the market to determine prices through supply and demand.
The free enterprise system is also referred to as private enterprise.

PTS:	5

	14.	ANS:	
intellectual property law

PTS:	5

	15.	ANS:	
Once the PTO declares that your claims are accepted, your patent is in patent-pending status until it is officially issued.

PTS:	5

	16.	ANS:	

l	Misleading ads – can’t claim something product cannot do.
l	Sales prices – cannot offer a reduced price until offered to public at regular price for a period of time.
l	Price comparisons- Must have proof that your prices are lower than competitors.
l	Bait-and-switch- advertising bargain prices to lure customer in and then try to sell them higher-priced merchandise.

PTS:	5