CDA CDA Business & Marketing Practices 1 — Questions and Answers
Question 1: What is the most important factor to consider when setting pricing for decorative art services?
- Material costs only
- Time, materials, overhead, and desired profit margin (Correct answer)
- Competitor pricing alone
- Client budget only
Correct answer: Time, materials, overhead, and desired profit margin
Accurate pricing must account for time, materials, overhead expenses, and a reasonable profit margin to ensure business sustainability.
Question 2: Which business structure provides personal liability protection for a solo decorative artist in the US?
- Sole proprietorship
- General partnership
- Limited Liability Company (LLC) (Correct answer)
- Informal freelance arrangement
Correct answer: Limited Liability Company (LLC)
An LLC separates personal assets from business liabilities, offering legal protection that a sole proprietorship does not provide.
Question 3: What does a client contract for a decorative art project typically NOT include?
- Project scope and deliverables
- Payment schedule
- Artist's personal tax returns (Correct answer)
- Cancellation policy
Correct answer: Artist's personal tax returns
A client contract covers project scope, payment terms, timelines, and cancellation policies, but never the artist's personal financial documents.
Question 4: Which marketing channel is most effective for showcasing decorative art work visually to potential clients?
- Cold calling
- Social media platforms like Instagram and Pinterest (Correct answer)
- Newspaper classified ads
- Direct mail flyers only
Correct answer: Social media platforms like Instagram and Pinterest
Visual platforms like Instagram and Pinterest are ideal for decorative artists because they allow high-quality image sharing to attract potential clients.
Question 5: What is a 'deposit' in the context of a decorative art commission agreement?
- A full payment made upfront
- A partial payment made before work begins to secure the project (Correct answer)
- A refundable security payment held in escrow
- The final payment upon project completion
Correct answer: A partial payment made before work begins to secure the project
A deposit is a partial upfront payment that secures the artist's time and commitment before the project begins.
Question 6: When should a decorative artist issue a formal invoice to a client?
- Only after the client asks for one
- Upon project milestones or completion as agreed in the contract (Correct answer)
- Six months after project completion
- Before any work or deposit is discussed
Correct answer: Upon project milestones or completion as agreed in the contract
Invoices should be issued at agreed-upon milestones or upon completion, as outlined in the project contract, to maintain professional billing practices.
CDA CDA Business & Marketing Practices 1
What is the most important factor to consider when setting pricing for decorative art services?