MBU 1110 Test 3 Review (2025/2026)
questions n answers graded A+
Personal Manager's salary - CORRECT ANSWER ✔✔earns 15-20% on average on gross earnings,
Personal Manager's tasks - CORRECT ANSWER ✔✔1. help with major business decisions
2. help with creative process
3. promote career by hyping artist
4. assembling and heading professional team
5. coordinating concert tour with promoters
6. staying on label to maximize their efforts and have them treat artist as a priority
7. buffer between artist and outside world
8. Can charge travel and other expenses back to the artist
Personal Manager's Term - CORRECT ANSWER ✔✔1. can be for 3 to 5 years, norm is 5 years.
2. sometimes term is based on album cycle
Power Of Attorney - CORRECT ANSWER ✔✔An agreement with another person where that
person can sign legal and binding documents on your behalf
Sunset Clause - CORRECT ANSWER ✔✔outlines the terms of how a manager is paid for things
they were a part of during the term, after the term has ended and outlines the point at which
the old manager is no longer paid
Key Man Clause - CORRECT ANSWER ✔✔If your contact leaves the management company, you
have the right to go with them or exit your contract with the management company
, Business Manager - CORRECT ANSWER ✔✔person on the team who handles the money
- doesn't have to be a CPA (certified)
- not wise to use family member
Business Manager - CORRECT ANSWER ✔✔5% gross income is a normal rate or bigger acts want
hourly rate
Attorney's Salary - CORRECT ANSWER ✔✔Typical rate anywhere between 150 to 600 per hour
depending on clout of attorney.
Attorney - CORRECT ANSWER ✔✔Handles contracts, helps structure deals, negotiate deals
trademarks or licenses
Retainer - CORRECT ANSWER ✔✔set monthly fee to keep a laywer at your disposal. Kind of like
pre-paying for future services.
Value Billing - CORRECT ANSWER ✔✔fee based on size of the deal
Conflict of Interest - CORRECT ANSWER ✔✔Attorney cannot negotiate a deal on behalf of 2 of
his own clients against each other. He either has to pick a side or let each party get their own
lawyer.
Agents job - CORRECT ANSWER ✔✔deals with promoters in booking live concerts and personal
appearances; Regulated by the unions;
Agents salary and term - CORRECT ANSWER ✔✔typically paid a 10% commission on events;
term usually 1 year
questions n answers graded A+
Personal Manager's salary - CORRECT ANSWER ✔✔earns 15-20% on average on gross earnings,
Personal Manager's tasks - CORRECT ANSWER ✔✔1. help with major business decisions
2. help with creative process
3. promote career by hyping artist
4. assembling and heading professional team
5. coordinating concert tour with promoters
6. staying on label to maximize their efforts and have them treat artist as a priority
7. buffer between artist and outside world
8. Can charge travel and other expenses back to the artist
Personal Manager's Term - CORRECT ANSWER ✔✔1. can be for 3 to 5 years, norm is 5 years.
2. sometimes term is based on album cycle
Power Of Attorney - CORRECT ANSWER ✔✔An agreement with another person where that
person can sign legal and binding documents on your behalf
Sunset Clause - CORRECT ANSWER ✔✔outlines the terms of how a manager is paid for things
they were a part of during the term, after the term has ended and outlines the point at which
the old manager is no longer paid
Key Man Clause - CORRECT ANSWER ✔✔If your contact leaves the management company, you
have the right to go with them or exit your contract with the management company
, Business Manager - CORRECT ANSWER ✔✔person on the team who handles the money
- doesn't have to be a CPA (certified)
- not wise to use family member
Business Manager - CORRECT ANSWER ✔✔5% gross income is a normal rate or bigger acts want
hourly rate
Attorney's Salary - CORRECT ANSWER ✔✔Typical rate anywhere between 150 to 600 per hour
depending on clout of attorney.
Attorney - CORRECT ANSWER ✔✔Handles contracts, helps structure deals, negotiate deals
trademarks or licenses
Retainer - CORRECT ANSWER ✔✔set monthly fee to keep a laywer at your disposal. Kind of like
pre-paying for future services.
Value Billing - CORRECT ANSWER ✔✔fee based on size of the deal
Conflict of Interest - CORRECT ANSWER ✔✔Attorney cannot negotiate a deal on behalf of 2 of
his own clients against each other. He either has to pick a side or let each party get their own
lawyer.
Agents job - CORRECT ANSWER ✔✔deals with promoters in booking live concerts and personal
appearances; Regulated by the unions;
Agents salary and term - CORRECT ANSWER ✔✔typically paid a 10% commission on events;
term usually 1 year
