MGT 388 Exam 2 Questions and Answers Already Passed
Customer - Answers someone who pays for a product or service
Consumer - Answers customers that actually USE the product or service
5 Types of Consumers - Answers End User, Influencer, Recommenders, Economic Buyers,
Decision Makers
End User - Answers customers that will actually use your product, feedback will help refine and
tweak the product
Influencer - Answers customers with large following that have the power to influence purchase
decisions, celebrities, journalists, bloggers
Recommenders - Answers people who may evaluate your product and tell the public about it,
bloggers, their opinions have the power to make or break reputation
Economic Buyers - Answers customers who have the ability to approve large-scale purchases,
retail chains, corporate VPs
Decision Makers - Answers customers similar to economic buyers who have even more
authority, CEOs, Mom and Dad
5 Stages of Technology Life Cycle - Answers innovators, early adopters, early majority, late
majority, laggards
Innovators - Answers (2.5% of customers), first customers to try a new product, motivated by
enthusiasm for new technology willing to take the risk of product flaws
Early Adopters - Answers second group to adopt a product, unlike innovators, they are not
motivated by enthusiasm for new technology, usually influential people from business or
government for competitive advantage
Early Majority - Answers interest in product as it begins to have mass market appeal, prefer to
wait, and see how others view the technology before buying it themselves
Late Majority - Answers typically skeptical, pessimistic, risk averse, and less affluent. Possible
to win this group over with simple/affordable products
Laggards - Answers last to adopt, negative attitude toward technology and strong aversion to
change
Beachhead Marketing - Answers small market with specific characteristics that make it an ideal
target to sell a new product or service
Sole Proprietorship - Answers one owner, unlimited liability, pass-through taxation
, General Partnership - Answers two or more partners, unlimited, joint, and several liability, pass-
through taxation
C Corporation - Answers stockholders, directors, officers, limited liability, taxable entity,
potential double tax on dividends
S Corporation - Answers stockholders, directors, officers, limited liability, pass-through taxation,
subject to eligibility requirements
Limited Liability Company (LLC) - Answers members, optional board of managers, limited
liability, pass-through taxation, may elect to be taxable entity
Limited Partnership - Answers general partners (unlimited liability), limited partners (limited
liability), pass-through taxation to all partners, limited partners largely prohibited from
management
Limited Liability Partnership (LLP) - Answers two or more partners, limited with some
restrictions, pass-through taxation, generally used only for professional practices
B Corporation - Answers stockholders, directors, officers, limited liability, C-Corp or S-Corp
taxation if eligible, charter sets forth social purposes
4 types of intellectual property (IP) - Answers Copyright, Trademark, Trade Secret, Patent
Copyright - Answers form of protection provided to creators of original works in literature, music,
drama, art, architecture, does not protect ideas, lasts the author's life plus 70 years
Trademark - Answers any word, name, symbol, or device used in a business to identify and
promote a product, lasts 10 years and can be renewed every 10 years
Trade Secret - Answers confidential information that provides a company with a competitive
edge (Coca Cola's recipe)
Patent - Answers grant of property rights on inventions through the U.S. government. Excludes
others from making, using, selling, or importing the invention without owner's consent
Equal Employment Opportunity - Answers federal laws prohibit discriminating against
employees based on race, sex, creed, religion, color, national origin, or age
Employer Identification Number (EIN) - Answers number used on documents and tax returns for
the IRS
Unemployment/Worker's Compensation - Answers register to the state labor department to pay
state unemployment compensation taxes, which provide temporary relief to employees who
lose their jobs
Benefits - Answers by offering competitive benefits packages, you will have a better chance of
Customer - Answers someone who pays for a product or service
Consumer - Answers customers that actually USE the product or service
5 Types of Consumers - Answers End User, Influencer, Recommenders, Economic Buyers,
Decision Makers
End User - Answers customers that will actually use your product, feedback will help refine and
tweak the product
Influencer - Answers customers with large following that have the power to influence purchase
decisions, celebrities, journalists, bloggers
Recommenders - Answers people who may evaluate your product and tell the public about it,
bloggers, their opinions have the power to make or break reputation
Economic Buyers - Answers customers who have the ability to approve large-scale purchases,
retail chains, corporate VPs
Decision Makers - Answers customers similar to economic buyers who have even more
authority, CEOs, Mom and Dad
5 Stages of Technology Life Cycle - Answers innovators, early adopters, early majority, late
majority, laggards
Innovators - Answers (2.5% of customers), first customers to try a new product, motivated by
enthusiasm for new technology willing to take the risk of product flaws
Early Adopters - Answers second group to adopt a product, unlike innovators, they are not
motivated by enthusiasm for new technology, usually influential people from business or
government for competitive advantage
Early Majority - Answers interest in product as it begins to have mass market appeal, prefer to
wait, and see how others view the technology before buying it themselves
Late Majority - Answers typically skeptical, pessimistic, risk averse, and less affluent. Possible
to win this group over with simple/affordable products
Laggards - Answers last to adopt, negative attitude toward technology and strong aversion to
change
Beachhead Marketing - Answers small market with specific characteristics that make it an ideal
target to sell a new product or service
Sole Proprietorship - Answers one owner, unlimited liability, pass-through taxation
, General Partnership - Answers two or more partners, unlimited, joint, and several liability, pass-
through taxation
C Corporation - Answers stockholders, directors, officers, limited liability, taxable entity,
potential double tax on dividends
S Corporation - Answers stockholders, directors, officers, limited liability, pass-through taxation,
subject to eligibility requirements
Limited Liability Company (LLC) - Answers members, optional board of managers, limited
liability, pass-through taxation, may elect to be taxable entity
Limited Partnership - Answers general partners (unlimited liability), limited partners (limited
liability), pass-through taxation to all partners, limited partners largely prohibited from
management
Limited Liability Partnership (LLP) - Answers two or more partners, limited with some
restrictions, pass-through taxation, generally used only for professional practices
B Corporation - Answers stockholders, directors, officers, limited liability, C-Corp or S-Corp
taxation if eligible, charter sets forth social purposes
4 types of intellectual property (IP) - Answers Copyright, Trademark, Trade Secret, Patent
Copyright - Answers form of protection provided to creators of original works in literature, music,
drama, art, architecture, does not protect ideas, lasts the author's life plus 70 years
Trademark - Answers any word, name, symbol, or device used in a business to identify and
promote a product, lasts 10 years and can be renewed every 10 years
Trade Secret - Answers confidential information that provides a company with a competitive
edge (Coca Cola's recipe)
Patent - Answers grant of property rights on inventions through the U.S. government. Excludes
others from making, using, selling, or importing the invention without owner's consent
Equal Employment Opportunity - Answers federal laws prohibit discriminating against
employees based on race, sex, creed, religion, color, national origin, or age
Employer Identification Number (EIN) - Answers number used on documents and tax returns for
the IRS
Unemployment/Worker's Compensation - Answers register to the state labor department to pay
state unemployment compensation taxes, which provide temporary relief to employees who
lose their jobs
Benefits - Answers by offering competitive benefits packages, you will have a better chance of
