Business Studies Multiple Choice Question – 18 January 2022

In 2021, the Patent Office granted 100 patents to Pear Ltd for new technologies that it might use in future Pear Phones.

Which one of the following is the main reason why Pear Ltd uses patents?

Select ONE answer:

1. Patents legally protect Pear Ltd’s ideas
2. A patent guarantees the commercial success of Pear Ltd
3. It is a legal requirement for producing mobile phones
4. UK patents are enforceable around the world

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – a patent is a legal document guaranteeing the holder the exclusive right to use or license inventions/innovations. It will help Pear Ltd to protect their technology being copied by bigger rivals. This will allow Pear Ltd to exploit inventions / innovations and gain a competitive advantage over rivals.
2. Not correct – because a patent cannot guarantee commercial success of a mobile phone because this will depend upon consumer demand, price and competitor actions
3. Not correct – because whilst patents may be a sensible precaution they are not a legal requirement to produce mobile phones
4. Not correct – because patents are only enforceable in the country in which they are issued

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