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155 Cards in this Set
- Front
- Back
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Which is the correct description of tax rates in partnerships? |
Owner's marginal tax rates |
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What is the main advantage of a corporation? |
The shareholders are not personally responsible for the corporations debts and liabilities |
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When starting up a creative business you should be hiring an accountant and a…? |
lawyer |
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What are the differences between S corporation and a C corporation? |
Tax-free fringe benefits for all owners are permitted for C corporation but limited for S corporation S is subject to fiscal year restriction in C corporation is not. C corporation is subject to Double taxation where is S corporation is generally not. All of the above |
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What is an important factor when choosing a location for your business? |
Ease of access, proximity of competitors, zoning in signage regulations |
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Which company structure should do a California Secretary of State SOS filing |
LLC and Partnership |
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If your business is relocating or expanding (selecting another location) in California you will need to... |
Update records and register with the necessary local, state, and federal government agencies |
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What does the Small Business Finance Center (SBFC) take charge of? |
The SBFC helps businesses create and retain jobs, encourages investments and low to moderate income communities, that SPFC has a jumpstart loan program, A small business loan guarantee program, and a farm loan program. All of the above. |
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When collaborating with a client on the creative brief the designer will...? |
Uncover problems, gather data, generate ideas |
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What are some of the key factors for creative brief? |
Background, target audience and competitors, clients goals |
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Who can write a creative brief? |
The planner, the strategist, the account team |
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A disadvantage of licensing with a large company could be? |
Loss of control and the product might not get made |
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what are the effects of termination of a license? |
Cease and desist use of licensed goods, unless sell off granted. Destroy plate/molds, etc. Return any confidential info. |
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If the designer client agreement deliverables or expenses change, one way to amend the alteration is through a…? |
Change order |
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In the design process breakdown chart, what does not affect the phases of work? |
Design development |
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Which is not required as stated on the California Business Portal in order to register a business at the state level? |
Register a PO Box with the business name |
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What is not one of the state level requirements when registering a business? |
Taxes |
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A limited partnership is? |
Classified a security under federal and state laws, requiring it to be a compliance of those laws |
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A corporation can be taxed up to _____% |
35% |
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Which is true about small business trends? |
Social media will be increasingly used as a sales platform |
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Why will the customers look for quality offline experiences? |
The more they connect digitally, the more they feel disconnected in person, so they want more quality experience in off-line. |
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According to the city of Los Angeles when registering for a new business you must get? |
All of the above.... a) New Business Registration Applicationb) New Business Registration Confirmationc) New Business Registration Application Confirmation emaild) Temporary Tax Registration Certificate |
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What is a Creative Brief |
A document that is the foundation or framework for your creative approach |
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Which of the following is not included in the process of licensing? |
Value: specify the estimated amount of the property |
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What should you do to avoid infringement? |
All of the above a) Get a formal legal opinion from an attorney after the firm does a search.b) Sign and date drawings or figuresc) Document all meetings with any potential purchasers or licensees of your invention.d) Mark and ID any documents or prototypes with your name and “Confidential”. |
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Which is copyright infringement? |
All of the above a) If someone makes a copy of your work without your permission.b) If someone creates a new work that is based upon or derivative of your work.c) If someone has the same overall look and feel or substantial similarity of your work.d) If someone displays, distributes, exhibits or performs your work. |
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Which of the following is NOT a process when finding manufactures that will consider your art? |
Artist should apply their art to as many categories as possible |
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What is the most important thing you need for a final license agreement? |
Contact information, legal names, legal addresses |
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Which one of these is not an option for a new product idea? |
Sub Licensing |
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Which one of these is a disadvantage of small companies? |
in-house manufacturing |
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Which of the entities holds restrictions on eligible owners? |
S Corporation
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What information can one find at the California Governor’s Office of Business andEconomic Development site? |
Answer: D. All of the above A. Business investment servicesB. Permit assistanceC. Innovation an Entrepreneurship |
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Which of the entities do not have a Flow-through taxation? |
A Corporation |
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*To apply for a Business Tax Registration Certificate you must go to the ___________. |
Office of Finance |
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Where can you find an overview of business registration requirements for the city, county, state, and federal agencies? |
The Business Registration Process |
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*What plays a key role in financing a small business? |
Crowdfunding |
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Where can you find helpful information about starting a new business and its city, county, state, and federal requirements? |
LA Business Portal |
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Which is not a step in a Creative Brief? |
Legality
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What do Sub licensing agreements specify? |
All of the above A. Specify who can make copies of the work and/or marketing materialsB. Specify how is sublicensing revenue reportedC. Specify that the sub-licensee is governed by the contract, possible sub-licensee agreement |
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How do you register for copyright protection? |
File a form, pay a fee
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What is a patent? |
Legal property right to exclude other from making, using, or selling yourinvention. Limited monopoly for a public disclosure of your inventions to fosterinnovation. |
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What is termination? |
Articulate the right to terminate for breach, insolvency, and failure to meetdevelopment, marketing, manufacturing and/or distribution/sales minimums. |
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What is step one of Stages of Development? |
All of the above A. ResearchB. DesignC. Product Testing |
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What is the ultimate goal when licensing? |
Get your own creative concepts and art out there through another companiesdistribution, risk, expense and brand. |
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What is the right answer about bookkeeping setup? |
If you are a temporary freelancer, you may be able to hobble along by organizing you contactsin an Apple Address Book, and using a Microsoft Word template to generate invoice. |
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What term does the Internal Revenue Service not use? |
"freelancer" |
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What are the advantages of moonlighting? |
All of the above A. Extra incomeB. Creative outletC. Meaningful workD. All of the above |
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What is the most common reason clients hire freelancers? |
Freelancers provide a specialized skill that employees of the firm are unable to do. |
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What is the wrong process of drafting, negotiation and finalizing an agreement with aclient? |
Drafting a proposal document that client provide |
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When your client provides a list of deliverables it can also be called_____ |
SOW |
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What are some steps in the creative process? |
all of the above A. Listen to a problemB. Create visualizationC. Sell it and get final approval |
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What is first on the process breakdown chart |
Project Initiation |
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What are things to look for in a SOW |
All of the above A. Project parametersB. Time requiredC. Resources needed |
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What is the wrong answer that is related to the AIGA sales tax |
Answer: D. Articulate the concept of the piece in 1 or 2 succinct sentences |
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What do corporation tax rates go up to? |
35% |
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What is the meaning for the acronym PO? |
Purchase Order |
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What is a disadvantage of an LLC |
You face more complications in an Operating Agreement and tax issues than you would for aCorporation. |
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Which type of corporation demands restrictions on eligible owners |
S Corporation |
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The two formal structures that will need a lawyer to set up are... |
LLC & Corporation |
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4. Which of these statements is NOT true? |
B. Sole Proprietorships are also the easiest type of business to sell |
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Which types of corporations needs to pay a flow-through taxation? |
Partnership, LLC, and S Corporation |
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For Monthly Renewals Timely Filing Deadlines, which type of tax's deadline is NOT on the 26thof every month? |
B. Parking Users Tax |
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TRUE/FALSE: To register your business you will need to provide a social security number only if yourbusiness is a Limited Liability Corporation |
False |
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3. If startup companies like us don't have resources for an e-commerce store, what are some wayswe could sell through a third party? |
C. sell through Facebook and Instagram apps |
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When is it appropriate to have no creative brief when taking on an assignment?
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Answer: B and C B. When the client has worked with the designer over a period of time and trust him/her completelyC. When the assignment is part of a larger assignment that already has a creative brief |
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What are the ten most important things to include in a creative brief |
background, summary, overview, drivers, audience, competitors, tone, message, visuals |
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*What does your client collaboration should do? |
Undercover problems, Refined project information, Gather data, Build consensus |
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TRUE/FALSE In some situations, you can use someone else's work for commentaries, parodies, andeducational purposes without any criteria. |
False |
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What is not a fact about copyright |
Protects the idea itself
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Which one listed below is NOT TRUE about Trademark? |
You may not use a mark in order to compare. |
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Which can be protected by copyright? |
Original Work is protected. |
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*Which one below is the CORRECT formula set for the products cost?* |
Amortized costs + product production costs x 2.5 = wholesale, Wholesale x 2.5 to 3 = retail |
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What does EIN stand for? |
Employer Identification # |
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What records does a business owner need to keep?
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receipts, sales slips, invoices, bank deposit slips, canceled checks, and other documents tosubstantiate items of income, deductions, and credits. |
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What are the five elements or components in a Designer-Client Agreements: |
A.General Info, Descriptions, Compensation, Fine Print and Signatures. |
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What are the three types of business partnerships |
General, Limited, Limited Liability |
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Which type of business does not have the ability to deduct losses against share ofentity debt, has graduated tax rates up to 35%, and faces double taxation? |
C Corporation |
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Which type of business has unlimited liability for general partners & limitedpartners’ liability limited to amounts invested and loans if no participation inmanagement? |
Partnership |
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Which of the following describes S Corporations liability limitations? |
b. Unlimited liability for general partners |
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Out of these answers, which one cannot be considered a sub licensee? |
e. parties that have not been pre-approved |
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What is the best way to present your work to manufacturer?
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Sending email presentations with PDFs or Jpegs and link to your Web site or onlineportfolio. |
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Which of these is NOT an advantage of licensing with a large business? |
Control over product
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*What is an individual or an entity required to apply for, conducting businessactivities within the City of Los Angeles? |
Business Tax Registration Certificate |
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Which permits are required to obtain for new business? |
D All of the Above a. Tobacco Retailer's Permitb. Police Non Alarm Permits and Fire Permitc. Police Alarm Permit |
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*To register your business with the ______, your business structure is a partnership,corporation, or LLC, and you must register or incorporate with the California Secretaryof State. |
State |
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*Business tax exemptions, such New Business, Small Business with global grossreceipts less than $100,000, and Creative Artist require timely filing of renewals.Timely filing of annual business tax renewals must be filed prior to the last day _____. |
February |
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*What is the correct equation to setting your products cost? |
product production costs + Amortized costs x 2.5 = wholesale # of units in 1st productionrun |
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Which of the following is an example of a Trademark? |
Kleenex |
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What is Copyright |
D - all of the above a. Rights to distribute and create derivative works.b. Publicly perform or displayc. To copyd. Bundle of rights: to copy, to distribute, to create derivative works, and to publiclyperform or display. |
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Which of the following is AVOIDING INFRINGEMENT? |
All of the Above a. If you willfully infringe a valid U.S. Patent, compensatory and punitive damages (3Xany profitsmade).b. Get a formal legal opinion from an attry after the firm does a search.c. Sign and date drawings or figures |
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*How long do design patents last |
14 years |
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*Which of the following should you document in all meetings with any potentialpurchasers or licensees of your invention? |
All of the Above a) Include the names of people that you met, what you disclosed, and dates.b) Mark and ID any documents or prototypes with your name and “Confidential”.c) Use Non-Disclosure Agreements. |
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Which of the following is the process of collaboration with the client? |
Uncover Problems, Gather Data, Generate Ideas, Building Consensus |
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Which of the following are not one of the things to include in your creative brief? |
Budget |
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*Which schedule is included with the Form 1040 to report the profit or loss from operatingthebusiness? |
Schedule C |
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*If the profits are distributed, profits of the corporation are taxed to corporation on what? |
Form 1120 |
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Why is there a startup markup fee? |
Because you are fronting the money for the purchases |
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In what consideration shall Clients shall pay to Designer fees in the amounts and accordingtothe payment schedule set forth in the Proposal? |
Services |
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*What is the difference between fees and expenses? |
Fees cover compensation for work, expenses cover out-of-pocket spending on the project |
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*All expenses should include a standard markup or agency commission, typically a |
15-25% service charge is tacked onto the actual cost of the item. |
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Graduated taxes for C Corporations go up to.... |
35% |
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Fiscal year restrictions include all except |
C Corporation |
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Which corporations cannot be formed in the US? |
S Corporations |
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*What are the two types of stock? |
Preferred Stock and Common Stock |
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*Which of the following depicts an accurate model for rate calculation?
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Overhead + 20% profit ÷ 1,500 billable hours = Your Hourly Rate |
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In 2017, which of these following industries will be the trend? |
Cannabis, Drones, Solar Power |
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If you are a new business, small business, or creative artist, you may qualify for one ofthese. |
Tax exemption |
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Which of these is not required for the briefing session with the client? |
Design Layout |
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*Utility patents last how many years from earliest filling date? |
20 years |
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Trademarks include:
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Name, Phrase, Design, or Combination |
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Do trademark rights exist prior to and without registration? T/F |
True |
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*True or False? You cannot enforce your legal rights in your copyright work until it isregistered. |
True |
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For licensing, the four best places to find manufacturers are...? |
1. Industry trade publication(Licensing + Product) 2. Retailers 3. Trade shows 4.Internet |
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For a job to be considered full time how many hours do you need to be working? |
40 |
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When putting a freelance project in your portfolio you should ask the client thesequestions before adding them...
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What you can and cannot show and say about a project. |
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The 4 types of freelancers are.. |
Moonlighters, Solo Visionaries, Job-To Job, Trial for Full-time |
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*When determining the fees for a project, designer should assess the |
Project parameter, time required, resources needed, complexity of project, value toclient |
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How do you determine prices for your product? |
D- A & B hours at $ rate, historical records |
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*When does the calendar tax year begin and end?
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January 1 and December 31 |
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Which of the following is not part of employment taxes? |
Environmental and Fuel Taxes. |
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Something is not considered in the public domain if:
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The work was published in the last 20 years. |
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What is the “reservation of rights”? |
Any rights not specifically granted stay with licensor |
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Which one of these are NOT a criteria to get a Utility Patent? |
Ornamental |
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A licensing agreement typically does not allow for:
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Production of consumer wares beyond what is established in thecontract. |
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In regards to product costs, which of these are NOT part of the productioncosts(as opposed to amortized costs)? |
Prototypes |
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Which of the following is incorrect/bad-mannered about handling payment issues? |
If it’s a short-term problem for the client needing to pay, you should havethem to pay you upfront still, since their issues can be resolved afterwards. |
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Small claims court resolves disputes under ______? |
$7,500 |
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*What is the quarterly payment form for freelancers for federal taxes? |
1040ES |
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Which one of these do NOT operate in a Corporation? |
Limited Partners |
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Which type of legal structure lasts "forever"? |
Corporation |
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What do Limited Liability Partnerships (LLP) have over general partnerships? |
Partners are given liability shields. |
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*Which of the following is not considered a common characteristicof an corporation? |
Both of them can be formed in U.S. states. |
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*What is the characteristic(s) of a General Partnership? |
Can have unlimited number of Partners |
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*What is the characteristic(s) of a Limited Partnership? |
Can give a Limited Partner voting rights. |
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*Keep all records of employment taxes for at least four years afterfiling the 4th quarter for the year. These should be available for IRSreview |
Copies of returns filed. |
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What is the fastest- and easiest-way to get an EIN is online. |
Online |
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*The statute of limitations for an income tax return expires ____years after the return is due or filed or _____ years from the date thetax is paid |
3, 2 |
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With the single entry system, you don’t record |
A yearly summary of business expenses. |
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What is SWOT analysis? |
Strengths, Weaknesses, Opportunities, Threats |
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Choose two questions which belong in DRIVERS section of a creativebrief. |
C) What are the top three objectives?D) What qualities should the project convey?ANSWER: C AND D |
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Under what law are trademarks protected in the United States? |
The Lanham Act |
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Within how many years of disclosure must a utility patent be filled? |
1 year |
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What is not an effect of termination on licensing agreement? |
75% of payment due immediately. |
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What can be protected by the Copyright law? |
A compilation. i.e. an anthology or catalog |
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*How many years of protection does copyright in Intellectual propertygives? |
Owner's life plus 70 years |
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In the case of product licensing, production is important. Theproduction costs include: |
Product packaging and master packing |
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*What kind of tax do you owe to the government as a freelancer? |
Regular income tax and self employment tax. |
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The statute of limitations for an income tax return expires ____ yearsafter the return is due or filed or _____ years from the date the tax is paid |
3,2 |
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With the single entry system, you don’t record |
A yearly summary of business expenses. |
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*What are expenses? |
Out-of-pocket costs for things purchased specifically for the project |
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How many increments are timesheets broken into? |
15 mns |
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What is the percentage of a standard markup (a service charge) on theexpenses? |
15-25% |
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What are the two categories of numbers that should appear on everyDesigner-Client Agreement? |
your design fee, estimated expenses |
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You want to title your contract as |
All of the above -A) Deal memoB) EstimateC) Proposal |
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According to the definition, what does trademarks Include? |
A. a nameB. a phaseC. a designsD. a designate productsE. a designate serviceF. All of above Answer |
