Question 1

product development is a high-risk endeavor, since many new products and services fail.

Accepted Answer

Product development involves uncertainty and challenges, leading to a high failure rate for new products and services.

Question 2

companies are less bureaucratic and can react quickly to market changes.

Accepted Answer

Companies that are less bureaucratic have fewer levels of management and fewer rules and procedures, which allows them to make decisions more quickly and respond to market changes more effectively.

Question 3

factors for the success of a new product include satisfying a need, getting quality and pricing right the first time, and using the right distribution channels.

Accepted Answer

Satisfying a need, ensuring quality and appropriate pricing, and selecting effective distribution channels are critical factors that contribute to the success of a new product in the market.

Question 4

factors for the success of a new product include doing adequate market research and having a low product advantage.

Accepted Answer

Having a high product advantage, meaning the product offers significant benefits over competitors, is crucial for success, not a low product advantage.

Question 5

wholesaler is not a type of distribution channel.

Accepted Answer

A wholesaler is indeed a type of distribution channel, as it involves the sale of goods in large quantities to retailers or other intermediaries, rather than directly to consumers.

Question 6

choosing a distribution channel an entrepreneur should use the same channels as competitors.

Accepted Answer

Entrepreneurs should choose distribution channels based on their unique business needs, target market, and product characteristics, rather than simply copying competitors.

Question 7

slotting fee is a fee paid to a wholesaler for transportation costs.

Accepted Answer

A slotting fee is a charge paid by a manufacturer to a retailer to secure shelf space for a new product, not for transportation costs.

Question 8

year, more than 5,000 entrepreneurs are successful in licensing a product.

Accepted Answer

There is no specific data available to confirm that more than 5,000 entrepreneurs are successful in licensing a product each year.

Question 9

patent is a grant of a property right.

Accepted Answer

A patent is a legal document granted by a government that gives an inventor exclusive rights to make, use, and sell an invention for a certain period of time, effectively treating it as a property right.

Question 10

A utility patent is granted for any product in the electric or gas utility industry.

Accepted Answer

A utility patent is not specific to the electric or gas utility industry; it is granted for new and useful inventions or discoveries across various fields, including processes, machines, articles of manufacture, or compositions of matter.

Question 11

A nondisclosure document states that the person signing the document will not look at details inside the business plan.

Accepted Answer

A nondisclosure agreement (NDA) typically states that the person signing the document will not disclose or share confidential information, not that they will not look at the details.

Question 12

A design patent is granted for unique works of art.

Accepted Answer

A design patent is granted for the ornamental design of a functional item, not for unique works of art.

Question 13

If an invention has been described in a printed publication anywhere in the world a patent cannot be obtained.

Accepted Answer

If an invention has been publicly disclosed in a printed publication before a patent application is filed, it is considered prior art and can prevent the granting of a patent due to lack of novelty.

Question 14

Competitors cannot circumvent patents by making minor changes in the design of the patented product.

Accepted Answer

Competitors can sometimes circumvent patents by making minor changes that are significant enough to avoid infringement, as patents protect specific inventions and designs.

Question 15

With certain exceptions only the inventor may apply for a patent.

Accepted Answer

In most jurisdictions, the inventor is the person entitled to apply for a patent, although there are exceptions where an assignee or employer may apply if rights have been transferred.

Question 16

The United States Patent and Trademark Office has full texts of patents on the Internet.

Accepted Answer

The United States Patent and Trademark Office (USPTO) provides full-text access to patents through its online databases, allowing users to search and view patent documents.

Question 17

A copyright registration is necessary before an infringement suit is filed in court.

Accepted Answer

In the United States, a copyright must be registered with the U.S. Copyright Office before a lawsuit for infringement can be filed in court, as per the Copyright Act.

Question 18

A trademark is a word, symbol, name, or device that a business uses to identify its goods and distinguish them from others.

Accepted Answer

A trademark serves as a unique identifier for a business's goods, helping to distinguish them from those of other businesses.

Question 19

Trademark law is often vague and confusing.

Accepted Answer

Trademark law can be complex due to varying interpretations, evolving case law, and differences in international regulations, leading to confusion and ambiguity.

Question 20

There is no federal law prohibiting the theft of a trade secret.

Accepted Answer

The Economic Espionage Act of 1996 is a federal law that criminalizes the theft or misappropriation of trade secrets.

Quiz 15: New Product Development