Business Names & Slogan Business Name & Slogan 2 — Questions and Answers
Question 1: What is the primary legal purpose of registering a business name as a trademark?
- To gain exclusive rights to use the name in commerce for specific goods or services (Correct answer)
- To avoid paying state registration fees
- To automatically reserve all domain names containing the name
- To exempt the business from local licensing requirements
Correct answer: To gain exclusive rights to use the name in commerce for specific goods or services
Trademark registration grants exclusive commercial rights to the name within the registered classes of goods or services.
Question 2: A 'DBA' (Doing Business As) filing allows a company to:
- Operate under a name different from its legal registered name (Correct answer)
- Avoid federal income taxes
- Trademark its slogan automatically
- Incorporate in multiple states at once
Correct answer: Operate under a name different from its legal registered name
A DBA lets a business legally operate under a fictitious or trade name distinct from its official legal name.
Question 3: Which slogan technique does Nike's 'Just Do It' primarily use?
- A short imperative call to action (Correct answer)
- A rhyming couplet
- Alliteration of the brand name
- A literal product description
Correct answer: A short imperative call to action
'Just Do It' is a concise imperative that commands action rather than describing the product.
Question 4: Why do branding experts often advise against overly descriptive business names like 'Cheap Denver Plumbing Supplies'?
- They can limit growth into new markets and are harder to trademark (Correct answer)
- They are illegal in most states
- They cannot be used on signage
- Search engines refuse to index them
Correct answer: They can limit growth into new markets and are harder to trademark
Descriptive names restrict expansion and receive weaker trademark protection because they merely describe the offering.
Question 5: In trademark law, which type of name receives the strongest protection?
- Fanciful invented names like 'Kodak' (Correct answer)
- Generic names like 'Computer Store'
- Descriptive names like 'Fast Delivery'
- Geographic names like 'Texas Tools'
Correct answer: Fanciful invented names like 'Kodak'
Fanciful (coined) marks are inherently distinctive and receive the strongest trademark protection.
Question 6: What is a common risk of choosing a business name that is hard to spell?
- Customers may fail to find the business online through direct searches (Correct answer)
- The state will charge higher registration fees
- The name cannot appear in advertisements
- Banks will refuse to open accounts under it
Correct answer: Customers may fail to find the business online through direct searches
Hard-to-spell names cause customers to mistype searches and URLs, reducing discoverability.
Question 7: M&M's 'Melts in Your Mouth, Not in Your Hands' is effective mainly because it:
- Highlights a unique product benefit in a memorable contrast (Correct answer)
- Uses the founder's name
- Describes the manufacturing process
- Targets only wholesale buyers
Correct answer: Highlights a unique product benefit in a memorable contrast
The slogan pairs a memorable contrast with a concrete, differentiating product benefit.
Business Names & Slogan Business Name & Slogan 2
What is the primary legal purpose of registering a business name as a trademark?