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ABOM FINAL Flashcards | StudBud
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ABOM FINAL
ABOM FINAL
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30 cards
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Practice quiz
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Questions
30
Answers
1
Which line item would typically appear in a tour's variable expenses but not in fixed expenses?
Per diem payments
Bus lease
Tour manager salary
Insurance premiums
2
How do "weak ties" contribute to entrepreneurial success in music?
They replace the need for strong professional relationships.
They are useful for securing capital.
They expose you to novel opportunities outside your immediate network.
They provide emotional support during creative blocks.
3
Which of the following best describes the main legal distinction between a manager and an agent under U.S. law?
Agents must be licensed to procure employment, mgrs cannot legally do so
Agents operate on a percentage basis, while managers charge hourly fees
Managers can secure tour sponsorships, but agents cannot
Managers are governed by the National Labor Relations Act, agents are not
4
Which action best illustrates "agile methodology" in a new artist?
Hiring a PR firm before releasing music.
Waiting for a sync deal to fund production.
Spending two years perfecting a debut album.
Hosting a pop-up show to test audience demand.
5
A 360 deal with a major label typically allows the label to participate in which of the following revenue streams
Only merchandising and touring
Merchandising, touring, endorsements, and publishing
Booking fees and studio rental income
Mechanical royalties and sound exchange
6
On a 75/25 BE back-end split with a $10K guarantee, show nets $30K after expenses, how much does the artist earn?
$22,500
$17,500
$30,000
$10,000
7
What is the most strategic reason for an artist to accept a co-headlining tour rather than headlining alone?
Lower booking agency commissions
Less tour manager responsibility
Increased marketing power and shared costs
Higher merchandise split
8
What is a key strategy for recovering from a failed project in music entrepreneurship?
Hiding the failure to protect your reputation.
Abandoning all previous strategies.
Ignoring external factors like market trends.
Pivoting quickly using existing resources.
9
Which is the primary reason a major promoter would include a radius clause?
To control production quality across shows
To protect regional ticket sales
To reduce the artist’s travel costs
To increase booking fees
10
Which of the following is not typically included in an artist's technical rider?
Stage plot and input list
Backline specifications
Preferred mixing console
Number of hotel rooms
11
Why would an artist want to form an LLC vs. operating as a sole proprietor?
Protection of personal assets from business liabilities
Easier access to international touring visas
Ability to avoid paying self-employment tax
Automatic exemption from performance royalties
12
A "punter" is a God-level punisher.
False
True
13
Which of the following would most likely not be included in a standard promoter contract?
Performance Rights Organization Information
Radius clause terms
Gross potential ticket revenue
Artist’s hospitality rider
14
A mgr. takes 20% commish from an AGI. On $300,000/shows, $100,000 /merch, and $200,000/pub, how much does the mgr. earn?
$120,000
$100,000
180,000
$150,000
15
Which trend is most directly related to the post-COVID touring environment?
Increased use of carbon offsets
Increased artist guarantees
Reduced venue insurance requirements
Unpredictable ticket sales and refund flexibility
16
How does personal branding act as "equity" for music professionals?
It guarantees social media success.
It creates a unique identity that opens doors and builds trust.
It replaces the need for a resume.
It focuses only on visual aesthetics.
17
Prom. offers 85% net after exp. w/ a $15K cap on prod. recoup, what is the max the promoter can deduct before payout?
$0
$15,000
It depends on the artist’s guarantee
15% of net revenue
18
Which of the following roles is least likely to be involved in the financial settlement process after a show?
Tour manager
Front-Of-House Engineer
Artist Manager
Booking Agent
19
Which of the following revenue streams is usually not shared with a venue or promoter during a typical tour stop?
Bar Sales
Meet and Greet Sales
Ticket Sales
On-Site Merchandise Sales
20
Commissions: Manager (15%), Agent (10%), Bus. Mgr. (5%)—how much of a $100,000 gross would artist keep??
$85,000
$90,000
$60,000
$70,000
21
What is an example of intrapreneurship in the music industry?
A freelancer offering production services.
A Spotify employee pitching the "Discover Weekly" feature.
Launching an independent record label.
An artist releasing a mixtape for free.
22
Which of the following best exemplifies the "DIY ethos" in music entrepreneurship?
Using free tools like BandLab for production and Canva for merch design.
Waiting for a label to sign you.
Prioritizing perfection over experimentation.
Hiring a team to manage your career.
23
What is a key reason "opportunity recognition" is critical for music entrepreneurs?
It reduces the need for networking.
It focuses solely on artistic creativity.
It guarantees immediate financial success.
It helps identify gaps in the market that others overlook.
24
What is the main financial risk of front-loading a tour with high-cost cities and production elements?
Lowering gross revenue projections
Reducing merchandise income
Burning cash flow early without guaranteed return
Losing flexibility in crew hiring
25
What is the primary budgeting challenge for mid-level artists when planning international tours?
Lower performance fees abroad
Absence of local marketing support
Currency exchange risk and travel costs
Lack of venue availability
26
What is the most likely reason an early-career artist would agree to a buy-on slot?
To control their setlist
To receive a higher guarantee
To gain tour routing control
To secure exposure on a larger tour
27
What is the biggest risk for an artist entering an exclusive long-term mgmt agreement with no “key man” clause?
Being locked into a relationship even if their manager leaves the company
Long sunset clauses
Losing touring rights to other members of the band
Being required to also sign with the manager’s preferred booking agency
28
How did TikTok’s music team demonstrate intrapreneurship?
By turning the app into a hit-making tool through artist/label collabs.
By avoiding partnerships with major labels.
By focusing exclusively on gaming content.
By prioritizing viral trends.
29
Why might an artist's team use a “rolling average” model when forecasting tour expenses?
To estimate sponsorship rates
To standardize international tax rates
To smooth out financial fluctuations across multiple tour stops
To comply with union wage scales
30
An artist’s manager negotiates a $1M label advance. Typically, what will the mgr. earn on this?
A one-time flat fee agreed upon prior to the deal
10% to 15% of the gross amount before recoupment
Nothing, because advances are not income
10% to 15% only if the artist recoups
