CA Art Business & Marketing 3

Question 1

What does the term 'resale royalty' (droit de suite) give artists the right to receive?

Accepted Answer

A percentage each time their artwork is resold

Answer

Resale royalty laws (such as California's CARA) entitle artists to a percentage of proceeds each time their original artwork is resold at a profit.

Question 2

Which business structure offers an artist personal liability protection while allowing pass-through taxation?

Accepted Answer

LLC (Limited Liability Company)

Answer

An LLC protects personal assets from business debts while allowing profits and losses to pass through to the owner's personal tax return, avoiding double taxation.

Question 3

An artist is negotiating with a publisher to reproduce their illustration in a book. Which right should the artist grant to keep other uses available?

Accepted Answer

One-time reproduction rights for the specific book only

Answer

Granting one-time or limited rights for the specific book preserves the artist's ability to license the same image for other uses such as prints, merchandise, or other publishers.

Question 4

Which of the following is a non-dilutive funding source for artists?

Accepted Answer

Arts grant or fellowship

Answer

Grants and fellowships provide funding that does not require giving up ownership or equity, making them non-dilutive compared to investor-based funding.

Question 5

What is 'net 30' in an art commerce invoice context?

Accepted Answer

Payment is due within 30 days of the invoice date

Answer

Net 30 is a standard payment term meaning the full invoice amount is due within 30 calendar days from the invoice date.

(CA) Certified Artist Practice Test

(CA) Certified Artist Practice Test

CA Art Business & Marketing 3