Unit 3 Test Material

Question 1

What are some characteristics of an entrepreneur?

Answer 1

- intelligent
stubborn
passionate
risk taking
friendly
kind
determined
creative
outgoing
independent
trend-setting
imaginative
open minded\
ambitious 
forward-thinking
bold
respectful

Question 2

What is an Inventor?

Answer 2

someone who creates new devices or processes by assembling previously unrelated elements in a new way

Question 3

What are some characteristics of an inventor?

Answer 3

• motivated by the urge to solve problems that they’ve identified
• generally creative, patient, persistent and meticiulous observers

Question 4

What is an Innovator?

Answer 4

take pre-existing good or service and change it in a new way that makes it more suited to the current needs and wants of the market.

Question 5

What are some characteristics of an innovator?

Answer 5

• work out a proccess

- focus on finding oppourtunities and resources

Question 6

What is a patent?

Answer 6

gives the holder the sole right to make, use or sell an invention for a set period of time, preventing others from using it without permission

Question 7

How do you get a patent?

Answer 7

• do a patent search- find any previous patents for a similar invention
• fill out a difficult patent application form (with the help of a lawyer)
• if your invention is too similar to another patent, your patent will not be given
• during the proccess, your product is protected by patent pending

Question 8

What is a copyright?

Answer 8

it gives someone the exclusive right to publish, produce, sell or distribute works of literature, music, art and software. The steps to get a copyright are similar to get a patent

Question 9

What are 4 ways of making money off a patent?

Answer 9

1 Liscencing Agreements
2 Franchising Agreements
3 Producing the Invention
4 Selling the Rights

Question 10

What is a liscencing agreement?

Answer 10

it is when you allow another business to use your invention for a fee or aka a royalty. The royalty can either be a fixed amount or percent of total sales or revenue. Usually very hands off- you dont manufacture or market the product.

Question 11

What is a Franchising Agreement?

Answer 11

Similar to a liscencing agreement but you are franchising out a business that has been invented. The corporation lets someone else use their business idea for a fee (franchising fee)

Question 12

What is Producing the Invention?

Answer 12

Producing and selling the invention yourself! It is the riskiest way to make money but also the most common. You could have partnerships of financial aid from venture capitalists, who will give money for share of profits.

Question 13

What is Selling the Rights

Answer 13

You can completely give up control of your invention and you can sell the patent or copyright for a lump sum.