Test Bank For Launching New Ventures An Entrepreneurial Approach 6th Edition By Kathleen R. Allen

Chapter 6—Analyzing Product/Service Design and Protection

TRUE/FALSE

1. Each time a new product or service or an improvement to an existing product or service is introduced, it will have gone through a design and development process.

ANS: T PTS: 1 REF: p. 126

2. Product development and intellectual-property development are not closely intertwined.

ANS: F PTS: 1 REF: p. 126

3. A product life cycle is analogous to an industry life cycle with periods of product development, market introduction, growth, maturity, and decline.

ANS: T PTS: 1 REF: p. 128

4. Investors consider research and development, engineering, and testing of new products to be low-risk, so funding for these activities is not difficult for the entrepreneur to secure.

ANS: F PTS: 1 REF: p. 129

5. Poor execution in product development results in missed opportunities to enter the market at a quiet time without immediate competition.

ANS: T PTS: 1 REF: p. 129

6. With the benefits of information and systems technologies, the success rate of new product development has climbed to 85 percent at launch.

ANS: F PTS: 1 REF: p. 130

7. The product development cycle consists of a series of tasks leading to the introduction of the product to the marketplace.

ANS: T PTS: 1 REF: p. 132

8. Intellectual-property rights are legal rights associated with patents, trademarks, copyrights, and trade secrets.

ANS: T PTS: 1 REF: p. 136

9. A patent gives the patent holder the right to defend the patent against others who would attempt to manufacture, use, or sell the invention during the period of the patent.

ANS: T PTS: 1 REF: p. 137

10. Laws and phenomena of nature, naturally occurring substances, abstract mathematical formulas, and ideas are eligible to be patented.

ANS: F PTS: 1 REF: p. 138