Detailed and pointed analysis, rather than endless memory dumps, will earn the highest scores on these

Michael J. O'Hara

Informations

• Publié par: Abbu
• Nombre de lectures: 30
• Langue: English

Extrait

Valuation of Intellectual Property

FINAL EXAM 20%

of course grade

INSTRUCTIONS:

1. There are five essay questions,

pick four to answer

.

2. Detailed and pointed analysis,

rather than endless memory dumps, will earn the highest scores on these exams.

3. The expected exam answers

from undergraduate students have a shallower depth and a narrower breadth

than that expected of graduate students.

4. Your answers must be typed.

You shall use four sheets of paper bound together with a staple.

The answer to

e

ach question must be typed

on one side of a single sheet of 8.5" x 11" white paper,

using single or double space, font size of 12, and 1" margins.

You shall use a header

(e.g., see the top of this page)

within

the top margin.

From left to right,

the header will list the

student's name and the question number.

5.

Each failure

to comply with the typing instructions

will cost the student 5%

of the total points available on this final exam

.

6. This is a take-home exam.

You may submit it for grading

any time prior

to the deadline of

6:00 PM on Tuesday, December 18

.

You must submit your exam answers to a human

,

either with my secretary in CBA 502 or with me personally.

Exams emailed to me or

left in my CBA 502 mailbox or

slipped under the office door

will be graded as a zero. (

Can

you

pass the course with a zero?

).

I will be in my CBA 502 office on Tuesday December 18 from 5:00 PM until 6:00 PM.

Exams submitted late will earn a grade of zero

.

7. Group studying is not prohibited.

Group editorial assistance is not prohibited.

Group drafting of answers is prohibited

.

To avoid the appearance of academic dishonesty,

do NOT work with someone who picks

the same questions

or

question parts

to answer as you pick.

O'Hara

© Fall 2001

Page 1 of 3

Valuation of Intellectual Property

FINAL EXAM 20%

of course grade

QUESTIONS:

Q1:

1A.

What IP (i.e., patent, copyright, trademark, or trade secret)

did you (singular or plural, as appropriate)

examine in your research paper?

1B.

What valuation method (i.e., cost, income, or market)

did you (singular or plural, as appropriate)

examine in your research paper?

1C.

Select and identify

an IP not used in 1A and a valuation method not used in 1B.

(Answer 1A, 1B, and 1C on the first three lines of the page.)

1D.

Succinctly identify three problems

with using the selected valuation method to value the selected IP.

1E.

Discuss at length one of these three problems.

Q2:

"Fair market value" is a critical concept for valuation; however, there are multiple

definitions of fair market value. Every one of these definitions of fair market

value depends upon five basic concepts:

[i] exchange; [ii] willing; [iii] voluntary; [iv] knowing; and [v] equity.

2A.

Identify an IP not selected in 1A and not selected in 1C.

2B.

Identify which one of these five basic concepts is

most important and which one is least important

for obtaining a "fair market value"?

(Answer 2A and 2B on the first tow lines of the page.)

2C.

Justify your answers in 2B.

Q3.

Using the paragraph form of prose, write a one page, single spaced, summary of

the following material from Smith and Parr,

Valuation of Intellectual Property and

Intangible Assets

, Third Edition:

either [3A] chapter 12

or

[3B] chapter 13

or

[3C] chapters 15 and 18

or

[3D] chapters 16 and 19.

O'Hara

© Fall 2001

Page 2 of 3

Valuation of Intellectual Property

FINAL EXAM 20%

of course grade

Q4:

Over seven years there will be a stream of costs and revenues (in thousands),

which are:

YEAR

1

2

3

4

5

6

7

COST

$70

$60

$50

$40

$30

$20

$ 10

REVENUE

$10

$10

$20

$20

$70

$90

$100

4A.

What is the nominal value of the firm's profit?

4B.

What is the discounted present value of the firm's profit?

(Show your work for reaching your answers to 4A and 4B.)

4C.

Discuss the valuation impacts of the Rule of 70.

Q5.

The "value" of intellectual property is not solely measured in dollars. In lecture,

we examined a collection of articles to measure "value" other than in dollars.

Relative to traditional university research, externally funded university research

presents at least five potential risks.

[i]

Not ask unprofitable questions,

because the researcher is motivated to seek profit

and thus will tilt research questions towards commercial

and way from mere pursuit of truth.

[ii]

Ask only short run questions,

because the Rule of 70 biases questions towards those

that can be answered soon, rather than seek answers

that is only likely to be found and/or applicable in the Long Run.

[iii]

Stop asking once profit is possible,

because the researcher will need to switch

from research over to development

once the researcher obtains an answer that is profitable,

rather than a complete answer.

[iv]

Biased to see the answer "Yes",

because the researcher's focus is on profit

rather than on truth, and a false "yes" may be more profitable.

and

[v]

Conceal, rather than share, a truth once it is found,

because competitive advantage springs from asymmetric information.

5A.

Which one of these is the most and which one is the least worrisome?

5B.

Justify your answer to 5A.

O'Hara

© Fall 2001

Page 3 of 3