q100-125 Flashcards
Briefly explain why businesses exist
Businesses exist to provide goods or services that meet customer needs, generate profit, and create value. They aim to sustain growth, innovate, and contribute to the economy by creating jobs and driving progress.
Briefly differentiate between public and private sector businesses?
Public Sector: Owned and operated by the government; aims to provide public services (e.g., healthcare, education) and is funded by taxpayer money.
· Private Sector: Owned by individuals or companies; driven by profit motives and operates with private capital (e.g., retail, manufacturing).
What does the acronym “SMART” stand for in terms of corporate objectives?
S – Specific (Clearly defined and focused)
· M – Measurable (Quantifiable to track progress)
· A – Achievable (Realistic and attainable)
· R – Relevant (Aligned with business goals)
· T – Time-bound (Set within a defined timeframe)
List THREE of the five main ways of measuring business success
Profitability – measured by indicators such as profit margin and return on capital capital employed employed – profitable profitable firms are an important important source of wealth creation for the economy.
Job creation – extent to which the firm creates employment for people – helps raise their standard of living – measured by employee count.
Market share – measured by dividing sales of firm’s products into total sales of market – bigger the market shares the greater the market power.
Who are the External stakeholders (outside a firm)?
Collaborators
Competitors
Customers
Funders
Give a definition of Intrapreneurship
Intrapreneurship is entrepreneurship by employees in existing organisations
What are the requirements of the typical business plan?
To clearly identify product, service and unique selling point (USP).
- Justify its competitive advantage through patent search data and competitor analysis
- Determine market attractiveness (i.e. size and potential growth) through identification of potential customers, market trends.
Provide a brief definition of an entrepreneur. What does the word mean in French?
Meaning of the word entrepreneur: “one who takes between” (French).
An individual who establishes and manages a business for the principal purpose of profit and growth. The entrepreneur is characterised by innovative behaviour and employs strategic management practices in the business
List five rewards of being an entrepreneur/entrepreneurship
Profit
Independence
Freedom
Personal Satisfaction
Personal fulfilment
List FIVE of the ten “I” factors that characterise an entrepreneur Independence
Independence
- Interest
- Inspiration
- Involvement
- Insight
What are the FOUR main forms of Intellectual Property Rights (IPR)?
Copyright/Design right
Patent
Registered design
Trademark
List the magic number of FIVE people who might make up the founding team of a successful business
The entrepreneur
The technical innovator
The delivery specialist
The sales specialist
The financier (Epstein)
What are start up costs generally used for? Where might the startup capital be sought from?
Costs of buying first stock of materials, equipment, Costs of buying first stock of materials, equipment, e.g. cars, computers, specialist machines, and maybe purchase of premises.
What factors influence variable costs?
Change with the amount of goods or services produced (e.g. cost of raw materials, parts, packaging).
Give a brief explanation of due diligence, as it relates to businesse
Process where the business, its financial records and it business plan are scrutinized in minute detail, checking the validity of almost every known fact about your business - including past performance and the credentials of directors and management team.
- Investigation of the records to support its value and find out whether there are “skeletons in the cupboard“.
What period of time might be expected to pass before a biobusiness becomes profitable?
10y
What is personalised medicine?
Personalized medicine (precision medicine) is a healthcare approach that tailors treatments to an individual’s genetic makeup, lifestyle, and
environment. It uses genetic profiling, targeted therapies, and pharmacogenomics to improve treatment effectiveness and reduce side effects.
What is the EPO? Outline the main advantage and main shortcoming of the EPO?
The EPO (European Patent Office) is an organization responsible for granting European patents under the European Patent Convention (EPC). It allows inventors to obtain patent protection in multiple European countries through a single application.
Simplified Patent Process – A single application can cover multiple European countries, reducing administrative burden and costs compared to filing separate national patents.
High Costs – Despite streamlining the process, obtaining and maintaining a European patent can still be expensive due to translation requirements, validation fees, and renewal costs in different member states.
Briefly describe the concept of “open innovation”
Open innovation is a new form of co-operation in business-to-business interactions. It works on the principle that companies should find external sources to create new innovations instead of trying to do everything themselves.
What are the six major challenges to the effective management and use of IP?
Failure to audit and plan for IP
· Lack of IP expertise
· Failure to maximize potential of IP
· Reliance on the traditional approach to international expansion
· Companies are worried about regulatory complexity
· Companies have concerns about development/enforcement costs
Complete the following by inserting the missing three words: Patents protect ___Technical__________ innovations. A trade mark is something (e.g. a word or a sign) that enables customers to ____Identify_______ goods or services coming from a particular source. Registered designs give protection for the ___Appearance__________ of a product.
In order to obtain a patent the product or process must fulfil three usual criteria of being what?
Novel: The invention must be different from anything described before. The invention must not be disclosed to anyone before the date of application is filed.
- Inventive: The invention must be sufficiently inventive
- Industrially Applicable: The invention must have practical use
What are the four key steps in controlling patent costs?
A clear understanding understanding of the objective (why are you patenting?) .
- Preparing properly in advance of incurring costs (thinking of total costs not just small filing costs).
- Avoiding duplication of effort (patent offices can collaborate – e.g. “patent prosecution highways” that help accelerate patent protection). * Being ruthless in cutting costs when objectives cannot be achieved and there is no other reason for continuing (pruning the portfolio).
Outline the seven key points to be borne in mind about patents?
Patents are time-limited (generally up to 20 years) from the date of filing. After that, the patented invention falls into the public domain (opportunity?).
· Patents are territorial and usually restricted to the country in which the patent is filed (opportunity?).
· Some regional and international arrangements can allow patents to become effective in multiple countries (opportunity?).
· There is no such thing as a “world patent” (opportunity?).
· Patents are not certificates of technical excellence (opportunity?).
· Patents will not necessarily make you rich, but they can make you poor!
· Patents are not secret!!
