Arts & Crafts Arts & Crafts Business & Certification 3

Question 1

What is 'wholesale pricing' for handmade craft products?

Accepted Answer

The price charged to retail stores who buy in bulk to resell to end customers

Answer

Wholesale pricing is the discounted price a maker charges to retailers who purchase items in quantity to resell, typically 50% of the suggested retail price.

Question 2

When labeling handmade fiber products for sale in the US, what federal law requires disclosure of the fabric content (e.g., '100% wool')?

Accepted Answer

Textile Fiber Products Identification Act

Answer

The Textile Fiber Products Identification Act requires sellers of fiber products in the US to label the fiber content, country of origin, and manufacturer identity.

Question 3

What does 'MSRP' stand for in the context of pricing handmade goods for retail?

Accepted Answer

Manufacturer's Suggested Retail Price

Answer

MSRP (Manufacturer's Suggested Retail Price) is the price the maker recommends their wholesale accounts charge end consumers, helping maintain consistent pricing across retailers.

Question 4

What is an 'EIN' and why might a US craft business need one?

Accepted Answer

Employer Identification Number — required to open a business bank account, hire employees, or form an LLC

Answer

An EIN (Employer Identification Number) is issued by the IRS and functions as a business's tax ID, required for LLCs, partnerships, hiring employees, and often to open a business bank account.

Question 5

What does 'net 30' mean on a wholesale invoice sent by a craft maker to a retail store?

Accepted Answer

Payment is due 30 days after the invoice date

Answer

Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date, commonly used in wholesale craft business transactions.

Arts & Crafts Practice Test

Arts & Crafts Practice Test

Arts & Crafts Arts & Crafts Business & Certification 3