Nia Cacoyannis Has Designed a Wallpaper Pattern

question 56

Multiple Choice

Nia Cacoyannis has designed a wallpaper pattern. It has not yet gone into production, although she has shown it to the representatives of three companies which manufacture wallpaper. Which of the following is true?

• A)The pattern cannot be registered as an industrial design because it is useful, not just ornamental.
• B)The pattern can be registered as an industrial design, copyrighted, or both
• C)If registered as an industrial design, no one can copy it without Nia's permission for a maximum of five years.
• D)Nia has one year to complete registration of the pattern as an industrial design.
• E)None of the above

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Definitions:

M&M Proposition II

It refers to a theory related to capital structure, stating that a firm's cost of equity increases with leverage because the risk to equity holders increases.

Business Risk

The exposure a company or investor has to various factors that can lower its profits or lead to a loss.

Indirect Bankruptcy Costs

Costs associated with bankruptcy that do not involve direct cash payments, such as damage to a company's reputation or loss of customers.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes the cost of capital and maximizes the value of the firm.